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What does locking in the currency circle mean? (Where do the coins locked in for buying coins go?)

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What does locking in the currency circle mean? It is set based on the quantity

What does locking in the currency circle mean? (Where do the coins locked in for buying coins go?)

What does locking in the currency circle mean? It is set based on the quantity of digital currency one holds. Simply put, it means storing the assets in the wallet in a cold wallet or on an exchange and waiting for them to be unfrozen before using these funds. However, if these assets are redeemed by someone else, they can only be used to invest in Bitcoin and some other cryptocurrencies because there is no way to buy anything else (such as Ethereum) like now.

For ordinary investors, locking in their digital assets to generate income is actually simply depositing the assets in a hot wallet in a digital way and earning profits during this process. (In general, when users want to accumulate digital assets in the long term, they can start using this currency)

Where are the coins locked in for buying coins placed

Editor’s note: This article is from Xiaozha Chat (ID: xiaonazha88), authorized to be reproduced by Odaily Star Planet Daily.

Investors in the currency circle always ask themselves: Why don’t you keep your money in an exchange? Is it because it’s in your hot and cold wallet? Or how to transfer your funds back and forth in an exchange to exchange for these tokens?” “Now the money in the exchange is in lock-up.” I often see people say, “This is a strange idea, but it does have its problems.”

This idea is actually a bit of an old routine: “If you buy Bitcoin with your phone and then sell it, it means you will get a bunch of digital currencies… So when you want to buy BTC, ETH, you will find that you may face a lot of losses. For example, when you need to pay for the electricity bill, it may give you a few hundred yuan, but your money does not have that much value, and even the price of Bitcoin has dropped to tens of yuan. So you will definitely be ripped off”, but in fact, this situation has never happened. “My assets have been locked by the exchange” I have always felt that this matter is somewhat unrealistic, so what should I do? However, recently, various topics such as “custody”, “market-making”, “leverage trading”, etc. have continued to appear in the market, especially in China, and such things are indeed very common. “Take your coins to speculate on stocks! We invested in blockchain technology for about 10 years, just to make quick money.” I have been looking for these so-called institutions and companies for custody. They already know where these people’s private keys are, how they are used, and their holdings.

There is an interesting story in it-if there is a team that can manage these private keys well, everyone can get income. And there are many people willing to spend time and energy on these private keys, just as we did with the stock of a mining company in the past. As long as they can get some equity, they have the ability to ship to other companies. Therefore, most of our customers have begun to pay attention to this matter, because the exchanges at that time were basically centralized platforms, and no one wanted this. After all, everyone is not a retail investor, just an ordinary user.

Another funny thing is that “the skills of the big shots are getting better and better!” I remember at the end of last year, I was chatting with a few friends, and they said that their family was building a volcano mine. Later, I talked to them about the number of coins they mined, and he said that they had purchased more than 300,000 coins, 80% of which have been locked in the fund, and the remaining 20% were all placed in one fund to hedge risks. Unexpectedly, just a week later, they handed some tokens over to someone else. “I think someone must be doing something?” I said, “Of course, it is a locked coin, including some previous projects such as defi, etc. They are quite important. So, for us in this industry, the most important thing is security.”

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