1. What is pip?

An Introduction to Pip in Cryptocurrency Trading

In cryptocurrency trading, a pip refers to the smallest price movement unit of a cryptocurrency. It serves as the basic unit for measuring changes in cryptocurrency prices, similar to pips in forex trading.

Basic Concepts of Cryptocurrency Trading

• Pip: The smallest price movement unit of a cryptocurrency, usually the last decimal place in the quote.
• Lot: The basic unit of trading, usually a batch of cryptocurrency.
• Spread: The difference between the buying price (Bid) and the selling price (Ask), often considered a trading cost.

Characteristics of Cryptocurrency Trading

• Zero-Sum Game: In cryptocurrency trading, one party's profit equals another party's loss.
• Price Volatility: Cryptocurrency prices can fluctuate dramatically due to various events, such as changes in project development plans, forks, and shifts in exchange fees.

Analytical Methods in Cryptocurrency Trading

• Fundamental Analysis: Price predictions based on news and the financial performance of cryptocurrencies.
• Market Sentiment Analysis: Understanding market participants' views on specific assets to predict price rises or falls.
• Technical Analysis: Chart analysis based on historical data and trading volumes, identifying chart patterns and indicator values.

In summary, a pip in cryptocurrency trading is the basic unit for measuring price changes, and understanding the fundamental concepts and analytical methods of cryptocurrency trading is crucial for successful trading.

2. Who Founded pip?

According to the provided information, there are two different explanations regarding the founders associated with the cryptocurrency or a project named "PIP":

1. PIP Labs: PIP Labs is the core contributor team for the Intellectual Property Blockchain Story, co-founded by a serial entrepreneur with a $440 million exit record and the youngest product manager from Deepmind.

2. Pip: Another project named “Pip,” founded by Umit Akcan in 2022.

Therefore, specifically regarding the name “PIP,” the founder needs to be determined based on the specific project background. For PIP Labs, the founders are the aforementioned serial entrepreneur and the product manager from Deepmind; while for the other project named “Pip,” the founder is Umit Akcan.

3. Which Venture Capitals Invested in pip?

According to the provided information, the following venture capital firms have invested in cryptocurrency-related projects, but there is no direct mention of “pip” (which may refer to price interest points, typically used in forex trading rather than cryptocurrency investment):

1. Hack VC: Focused on early-stage investments in crypto infrastructure, including projects like io.net, Initia, AltLayer, imgnAI, among others.
2. Polychain Capital: Partnered with Hack VC to invest in multiple crypto projects.
3. Founders Fund: Invested in the cryptocurrency startup Tagomi Systems Inc., aimed at optimizing cryptocurrency large trades.
4. Dragonfly Capital: Co-founded by Alexander and Feng Bo, investing in multiple cryptocurrency projects, including Basis and several cryptocurrency exchanges.

These companies primarily invest in crypto infrastructure, DeFi, and CeFi projects rather than directly investing in the concept of “pip.”

4. How does pip work?

In cryptocurrency trading, the concept of “pip” is similar to that in forex trading, but given the different price fluctuations and quoting methods of cryptocurrencies, the specific operational methods differ. Here is an explanation of "pip" in cryptocurrency:

1. Definition: In cryptocurrency trading, a “pip” typically refers to the smallest unit of price change. Due to the significant price volatility in cryptocurrencies, smaller units are often used to indicate price changes.

2. Calculation: Similar to forex trading, the value of a "pip" in cryptocurrency depends on the trading instrument and the trading volume. For instance, if trading Bitcoin/USD (BTC/USD), one "pip" might be valued at $0.01 or $0.0001 depending on the quoting precision of the trading platform.

3. Pricing Precision: Cryptocurrency trading platforms may employ different quoting precisions, such as four or five decimal places. For four-figure quotes, one "pip" is usually 0.0001; for five-figure quotes, it is typically 0.00001.

4. Trading Strategies: Understanding the concept of "pip" is crucial for cryptocurrency traders as it helps them calculate profits and losses and develop effective risk management strategies.

In conclusion, the concept of "pip" in cryptocurrencies is similar to that in forex trading, but the specific operational methods depend on the quoting precision of the trading platform and the characteristics of the trading instrument.