There are four main ways to make money from digital coins: earn the difference (including spot, leverage, contract trading); deposit the coins into the platform to obtain interest (regular, current, DeFi pledge); invest computing power or hold the coins to verify transactions to get rewards (PoW/PoS); participate in project airdrop or new currency issuance (airdrop, IEO/IDO). 2. For operations, you need to choose a safe and compliant exchange such as Binance, OKX, and Huobi. 3. Spot trading operations are divided into four steps: recharge funds (check the fiat currency or currency address) → select trading pairs (such as BTC/USDT) → place an order (market order quick transaction, limit order price control, stop-profit and stop-loss order risk control) → withdrawal (confirm that the network and address are correct). 4. Risk management must be done well: only use spare money to invest and distribute it; learn technology and fundamental analysis; stay calm and avoid emotional trading; strengthen account security such as enabling 2FA; continuously learn to adapt to market changes in order to seize opportunities and survive for a long time in this high-volatility market.

Several main modes of making money in digital coins

There are many profit models of digital coins, not just simple "buy low and sell high". Understanding these patterns and choosing based on your own risk tolerance and market judgment is the key to success.

Transaction difference

This is the most intuitive and common way to make money. By buying digital currency at a low price and selling at a high price, you can earn the difference. This model requires investors to have a keen insight into the market, be able to analyze market trends, and predict price volatility.

• Spot trading: the most basic trading behavior, directly holding digital currency.
• Leveraged trading: borrow funds to increase investment, and both returns and risks increase exponentially.
• Contract trading: Do not actually hold digital currency and make profits by predicting future price increases and falls.

Financial management and pledge

Similar to bank deposits or funds, digital currency is deposited into exchanges or DeFi platforms for pledge and obtain interest income. This method is relatively stable and suitable for investors who do not want to trade frequently.

• Regular financial management: Lock digital currency for a certain period of time and obtain fixed or floating returns.
• Current financial management: deposit and withdraw as you like, and the rate of return is usually lower than regular financial management.
• DeFi pledge toys: pledge assets in a decentralized financial agreement and obtain governance tokens or transaction fees.

Dig a wide range of stones

By providing computing power to verify blockchain transactions, we can obtain newly issued digital currency as a reward. The Shi Guang needs professional hardware equipment and power support, and the initial investment is large.

• PoW Digging: Solve encryption problems by consuming computing power.
• PoS Daoguang: Verify transactions by holding and pledging digital currency.

Airdrop and IEO/IDO

Airdrop is the project party’s free distribution of digital currency to address qualified addresses in order to promote new coins. IEO (first exchange issuance) and IDO (first decentralized exchange issuance) are the first sale of tokens by project parties through exchanges or DeFi platforms, and investors have the opportunity to buy at a lower price.

• Airdrop: Follow the official channels of the project and participate in the event to get free tokens.
• IEO/IDO: Participate in the subscription of new coins on exchanges or platforms, and have the opportunity to obtain early tokens.

How to do it: Choose a reliable exchange

When conducting digital currency trading and operations, it is crucial to choose an exchange with the highest safety, compliance and liquidity. The following are the top three digital currency exchanges in the current market for your reference.

1. Binance

• The world's largest digital currency exchange.
• Provides a variety of transaction pairs and financial products.
• With strong security system and user support.
• Supports multiple fiat currency deposit and withdrawal channels.

2. OKX (Ou Yi)

• One of the well-known digital currency trading platforms.
• Provide diversified trading services such as spot, contracts, and options.
• It has a wealth of financial management products and DeFi portals.
• Pay attention to user asset security and transaction experience.

3. Huobi (Huobi)

• An old digital currency trading platform.
• Provide comprehensive trading services and derivatives.
• Have a huge user base and a good reputation.
• Continuously expand global business layout.

Trading operation guide: Taking spot trading as an example

After understanding the money-making model and choosing an exchange, the next step is the specific trading operations. Take the most common spot trading Bitcoin as an example, and break down each step in detail.

Step 1: Recharge funds

You need to top up the funds to the exchange account. The common recharge method is fiat currency recharge or digital currency recharge.

• Select the exchange's "Recharge" or "Deposit" option.
• If you choose fiat currency recharge, follow the prompts to choose bank transfer, Alipay, WeChat payment and other methods. Note that the fiat currency recharge methods supported by different regions and exchanges may be different. Follow the prompts to enter the amount and collection information and complete the transfer.
• If you choose digital currency recharge, select the currency you want to recharge (such as USDT) and copy the recharge address provided by the exchange. In your original digital storage or another exchange, select withdrawal or transfer to send the corresponding amount of digital currency to this address. **Please be sure to check the coin recharge address and currency, and it will not be retrieved once the error is wrong.
• Wait for the funds to arrive. The recharge process may take several minutes to several hours.

Step 2: Select a trading pair

After the funds arrive, you need to select the digital currency you want to trade. For example, if you want to buy Bitcoin with USDT, you need to choose the **BTC/USDT trading pair**.

• Find the "Trade" or "Market" entrance on the exchange interface.
• Enter the currency you want to trade in, such as "BTC".
• Select a trading pair corresponding to the funds you hold, such as "BTC/USDT".

Step 3: Place an order and trade

Once you enter the trading interface, you will see the Buy and Sell Order Book, as well as various order types.

• **Market Order**: Transaction immediately at the best price in the current market. This method has a fast transaction speed, but the transaction price is uncertain.
• Select the Buy or Sell tab.
• Select "Market Order".
• Enter the quantity you want to buy (or sell).
• Click the "Buy BTC" or "Sell BTC" button. Your order will be sold immediately.

• **Limit Order**: Set a price you expect to buy or sell. Orders will only be completed when the market price reaches or is better than the price you set. This method can control costs, but may not be sold immediately.
• Select the Buy or Sell tab.
• Select "Limit Order".
• Enter the price you expect to buy or sell in the Price box.
• Enter the quantity you want to buy (or sell) in the Quantity box.
• Click the "Buy BTC" or "Sell BTC" button. Your order will be displayed in "Current Order" or "Pending Order" waiting for the market price to reach.

• **Stop-Limit Order**: This is an advanced order type that is used to control risks and lock profits**.
• When you hold a digital currency, you can set a stop loss order to limit potential losses**. For example, you bought 1 BTC at 20,000 USDT and worried about the price falling, you can set a stop loss price of 19,000 USDT. When the BTC price drops to 19000 USDT, your stop loss order will be triggered and will be automatically sold at 19000 USDT or better.
• Select the "Stop Profit and Stop Loss" or "Schedule Delegation" option.
• Select "Stop Loss" or "Stop Profit".
• Set "Trigger Price" (i.e. when the market price reaches this price, the order is activated).
• Set the "entrusted price" (that is, after the order is activated, buy or sell at this price limit).
• Set "Quantity".
• Click Confirm.

Step 4: Withdrawal

When you make a profit and want to withdraw your funds, the steps are as follows:

• Find the "Cash Withdrawal" or "Get Out" option on the exchange interface.
• Select the currency (fiat currency or digital currency) you want to withdraw.
• If you withdraw fiat currency, follow the prompts to select a bank account or other payment method, enter the amount, and submit a withdrawal application.
• If you withdraw digital currency, choose a withdrawal network (such as ERC20, TRC20, etc. **Be sure to keep it consistent with the network where you receive the address**), enter the receiving address and the withdrawal quantity. **Reiterate that withdrawal address and network errors can lead to permanent loss of funds. **
• Security verification is usually required, such as Google Verifier, mobile phone SMS verification, etc.
• Wait for withdrawal to be credited. Digital currency withdrawals are usually faster, and fiat currency withdrawals may require bank processing time.

Risk management and precautions

The digital currency market fluctuates greatly, and contains huge opportunities, but it is also accompanied by corresponding risks. Effective risk management is the key to ensuring your long-term survival and profitability.

1. Fund Management

Never invest money you can't afford to lose. Keep investment funds within the range that even if you lose all your money, it will not affect your quality of life. Diversified investment is an effective way to reduce risks. Do not concentrate all funds on a certain digital currency or a certain strategy.

2. Market Analysis

Learn basic market analysis methods, including technical analysis and fundamental analysis. Technical analysis predicts future price trends through chart patterns, indicators, etc.; fundamental analysis focuses on intrinsic value such as project technology, teams, and market applications. Always pay attention to market news and policy changes, these factors may have a huge impact on the price of digital currencies.

3. Risk awareness

Recognize the extreme volatility of the digital currency market. Prices may rise or fall sharply in a short period of time. ** Stay calm, don’t be influenced by emotions, and avoid chasing the rise and selling the fall.

4. Safety protection

Keep your account safe. Use a strong password to enable two-factor verification (2FA), such as Google Verifier or SMS Verification. Beware of phishing websites and scam information, do not click on unknown links, and do not disclose your private key or password to anyone. Choose an exchange with good reputation and complete security measures.

5. Learning and adapting

The digital currency market is developing rapidly, and new technologies and projects are emerging one after another. Continuously learning new knowledge and skills and adapting to market changes is the key to maintaining competitiveness.

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