The virtual currency market is booming day by day, and many virtual currency platforms (cryptocurrency platforms) have entered the market, making it easier to buy coins, bitcoins, and ethers. In the past, it was not easy to buy bitcoins in the cryptocurrency market. People needed to mine through high-end mining hardware or find sellers for “over-the-counter” (OTC) transactions.
If you want to get bitcoins by mining, you need to use a high-end mining machine, download the mining software and fill in your virtual currency wallet address. After successfully mining bitcoins, the system will deposit the bitcoins in your wallet; if you want to buy bitcoins through OTC, you only need to provide the seller with an address so that the seller can send the bitcoins to you. This transaction process does not require any bank branch code, country code, identity authentication and other information, and does not require a third party (usually a bank) to help process the transaction. This peer-to-peer transaction model is the so-called decentralization. However, since the development of virtual currency, only transactions with a particularly high amount will choose to buy and sell Bitcoin through OTC transactions.
From the historical reference of the development of cryptocurrencies, the price fluctuations of Bitcoin or other virtual currencies are very large. In 2021, the price of Bitcoin will make a major breakthrough, reaching an all-time high of nearly 70,000 US dollars, attracting many new investors, retail investors, and even some housewives to enter the market, but this “tulip mania” will last from the end of 2021 to 2022. just exploded. Until mid-2022, the virtual currency market has failed to return to the climax of 2021. Are virtual currencies an opportunity or a threat? Is virtual currency safe? And how do you, who believe in the decentralized value of Bitcoin, enter the world of virtual currency? What do you need to know before entering the virtual currency market? Let JPEX Bitcoin Trading Platform tell you 8 frequently asked questions about cryptocurrencies today and let’s get started today!
1. How did the virtual currency world come into being? How do I buy and sell bitcoin?
On September 15, 2008, the collapse of Lehman Brothers triggered the US financial crisis, and its impact spread rapidly around the world. On October 31 of the same year, Satoshi Nakamoto published the white paper “Bitcoin: A Peer-to-Peer Electronic Cash System” in a secret cryptography discussion group, bringing the concept of Bitcoin and virtual currency to reality for the first time. World.
In February 2022, there are more than 10,000 types of virtual currencies. Nowadays, the application scenarios of virtual currency are very wide, including: virtual currency (Ether, Bitcoin, stable currency, etc.) buying and selling, depositing coins to earn interest, contract trading, buying and selling collectibles, etc. As the first virtual currency, Bitcoin is still the most valuable cryptocurrency in the world today.
Bitcoin is a currency that is not controlled by any individual, group or entity, and its transactions do not require the involvement of banks or financial institutions. In contrast, Bitcoin buying and selling requires pipelines to complete the entire transaction, which requires the participation of blockchain miners. When miners assist in completing each bitcoin transaction, they can receive relative bitcoin as a reward and trade on the bitcoin exchange.
2. What is KYC?
Whether in Taiwan, Hong Kong or most other countries, cryptocurrency exchanges are required to complete KYC (Know Your Customer) authentication for users, that is, to complete “identity authentication” for users. KYC is stipulated by the laws of various countries, and the purpose is to prevent users from using cryptocurrency exchanges for money laundering or other illegal purposes. Its identity authentication usually requires users to provide personal information such as the front and back of the identity card, head photo, passport and address proof. If users have doubts about the use of personal information, they can put a watermark of “Only for (company name) registration” before uploading the photo of the certificate to reduce the chance of the information being used illegally.
3. What is the Order Book?
If you trade stocks, you will be familiar with the trading book. Order Book gathers information about virtual currency transactions. The JPEX virtual currency exchange provides buy orders (Bid) and sell orders (Ask) for buying and selling virtual currency. Bid is the information of the buyer’s bid and Ask is the information of the seller’s quotation. Users can view buy and sell orders on the trading book on the JPEX website or APP.
4. What is a trading pair?
Trading pairs are very common in Forex trading. In foreign exchange trading, the trading pair generally refers to how much currency A you need to exchange for currency B, for example: USD/EUR means how many euros you need to buy $1 USD. And we can all learn about the trading pairs of different virtual currencies from JPEX. When people have two virtual currencies specified in the trading pair, they can exchange one virtual currency for the other virtual currency. Take BTC/USDT as an example, which means that when you own Bitcoin, you can use Bitcoin to trade Tite.
5. What channels can I use to buy and sell Bitcoin?
Over the counter / OTC Shop
Cryptocurrencies can be bought and sold through online currency buying platforms or brick-and-mortar exchange stores, but the handling fee will be higher. The advantage of OTC is that it is more secure, and you can see the staff serving you when buying and selling bitcoin and ether in a physical exchange store, so you don’t have to be afraid of being deceived.
Face-to-face transactions (P2P)
When buying and selling bitcoins with higher amounts, some people choose face-to-face transactions (P2P). The two parties to the transaction need to agree to meet in one place, the buyer pays instantly in cash, and the seller instantly deposits bitcoin into the buyer’s wallet. But this method has certain dangers. In the past, scammers would pretend to buy Bitcoin, and then agreed to meet the seller in a sparsely populated place and kidnap the seller. Therefore, P2P is a less recommended transaction channel.
Past news: 30 million yuan virtual currency master kidnapping case, 7 suspects arrested in mainland China and repatriated to Hong Kong
Buying and selling bitcoins on cryptocurrency platforms/virtual currency exchanges is a more common method because the process is very simple. Taking JPEX as an example, the process from registering an account on our virtual currency exchange to buying and selling Bitcoin is also very simple, just download the app, take a few minutes to register an account, log in, recharge stablecoins, and then buy and sell Bitcoins with stablecoins You can. Buying and selling Bitcoin through a virtual currency exchange is the most recommended way of trading, and the process is similar to the application for opening a stock account.
JPEX Taiwan virtual currency platform was established in 2019, focusing on the development of decentralized finance, cryptocurrency trading APP and smart contract services. In 2021, JPEX will officially enter the cryptocurrency trading platform market in Hong Kong and Taiwan, and will provide users with compliant, safe and reliable cryptocurrency trading services with the aim of being stable, fast and safe. JPEX is a currency buying platform that has obtained virtual currency licenses issued by many countries (including: the United States, Canada and Australia) and is regulated by local regulations, allowing the public to safely trade different cryptocurrencies, such as Bitcoin trading (BTC trading) , Ether trading (ETH trading), etc. Today, JPEX provides users with more than 60 cryptocurrency trading services and more than 20 cryptocurrency futures trading, with transaction fees as low as 0.04%.
Register a JPEX Cryptocurrency Platform Account Now
6. How can I use cryptocurrency to invest and finance?
The JPEX cryptocurrency exchange provides the JPEX EARN feature, which enables investors to earn considerable passive income. There are 3 ways to use JPEX EARN to earn passive income, including Earn Defi financing, current financing and mobile financing.
6.1 Defi Finance
The principle of Earn Defi financial management is to allow investors to take advantage of the trade difference between different exchanges to arbitrage. The JPEX virtual currency platform uses a 24-hour artificial intelligence trading program to lock the currency price of the global exchange, ensuring that JPEX investors can earn a considerable return on the difference first. For example, taking Bitcoin Earn as an example, the Earn system of JPEX will lock a virtual currency exchange with a lower real-time bitcoin price to buy cryptocurrencies at a low price, and at the same time lock another virtual currency exchange with a higher real-time bitcoin price. To sell bitcoin at a higher price, Earn Defi financial management is to automate the process of buying low and selling high, allowing you to passively earn high spread returns and achieve your financial goals.
Learn more about JPEX Earn Defi Finance:
Crypto currency Type : Bitcoin (BTC), Ether (ETH), Tether (USDT), Shiba, Doge, Cardino (ADA), APE, etc.
Annualized rate of return 10% – 30%
Settlement period daily settlement
Interest settlement currency: You can choose to use the deposited currency as the settlement currency of interest, or you can choose to settle in the stable currency USDT. For example, when you deposit BTC, you can choose to charge BTC interest, or you can choose to charge the equivalent USDT interest
6.2 Mobile Banking
The way JPEX mobile financial management works is to allow JPEX investors to provide their encrypted assets to JPEX’s liquidity pool (JPEX SWAP), providing JPEX with capital liquidity so that more investors can complete professional transactions faster on JPEX. Investors need to store two specific virtual currencies in JPEX. The value of these two cryptocurrencies must be equal, and investors can get designated transaction fees and rewards in return. Investors who use mobile financial management can freely access the assets in the liquidity pool, so mobile financial management can also be regarded as a current financial management, and the idle funds are paid for interest. Generally speaking, JPEX mobile financial management has higher risks than DeFi, but the returns are better than current financial management.
6.3 Current financial management
The operation of JPEX current financial management is very simple, and traditional silver is to allow investors to deposit virtual currency in JPEX, and then get interest in return after a specified time. Compared with the above two methods, the return will be lower, and the financial risk will be lower, which is more suitable for novice investors who experience Defi for the first time.
Compare JPEX’s latest wealth management projects
JPEX Wealth Management Project
DeFi financial management
Mode of operation
Buy low and sell high for profit on other virtual currency exchanges
Provide liquidity for JPEX to earn interest and additional returns
Provide liquidity to JPEX to earn interest returns
7. Can I buy and sell Bitcoin as a contract?
Can. Similar to futures contracts, bitcoin contracts are legal contracts to buy or sell bitcoin on a future date. Buying and selling bitcoin in the form of a contract does not require holding bitcoin, but an investment method by estimating the future trend of bitcoin and hedging risks. But for beginners, due to the high complexity of Bitcoin contracts and the doubling of risks while doubling the rewards, spot trading is a more recommended trading method.
8. Is cryptocurrency trading safe?
Buying and selling cryptocurrencies on exchanges is generally very safe. In the early days of the development of blockchain technology, many exchanges were successfully invaded by hackers, resulting in the capture of the private keys of a large number of users; but with the passage of time, the security defense mechanism of exchanges has become more and more rigorous, and there will be sufficient Back-up funds to provide users with remedial solutions. Therefore, it is much safer to buy and sell virtual currency than before, and the most important thing is to choose a reputable virtual currency exchange.
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Disclaimer Investment involves risks. The price of cryptocurrencies often fluctuates greatly. The price can go up or down, and even the value will return to zero. Before investing, you must clearly understand the risk tolerance level you are willing to accept.