[REPOST] [DOTUSDT | Sell]Crypto Academy Trading Competition - S6T3 | Homework Post For Professor @pelon53
Below is the link to the task
Polkadot is a smart contract compatible blockchain which was launched in May 2020 by Ethereum co-founder Dr Gavin Wood. His goal was to give the most sophisticated medium for security, huge scalability and at the same time go through lengths that the Ethereum could not reach. Since this was done also by a person who was at the helm of Ethereum, it should not come as a bother that the Polkadot and Ethereum 2.0 share a whole lot of similarities.
Robert Habermeier is the co-founder of Polkadot. An intellect in the research and development of blockchains and cryptography basis.
Peter Czaban as well is the third of the co-founding team of this project. He is the technology director working on the Web3 foundation where he strives for the development of the next generation of distributed technologies.
Polkadot can be considered as the flagship project by the Web3 Swiss Foundation which was founded in order to facilitate a very much user-friendly and functional decentralized web. Also, there are researchers from the Inria Paris and ETH Zurich, and also capital partners from crypto-funds like Polychain Capital which are all working hand-in-glove to develop a sophisticated realization of the Web3 (an almost unstoppable train at the moment) with Polkadot at its core.
As seen above, some of the exchanges that support this token are binance, huobi, kraken, coinex amongst a host of others.
- Polkadot is a fast-rising token as it provides more basic abilities compared to Ethereum, which strives to complete more complex services or tasks. As ETH has only one “path” for transactions, which most at times leasd to congestion, Polkadot offers a faster alternative to beat this defect as it uses parachains which speeds up transactions.
- Also, Polkadot has protocols that allows its individual network to interact alongside other blockchains making it flexible thus serving a more specific need to individuals.
If all these points and even more are concreted, it will be seen that it portrays a beautiful future as Polkadot easily beat up in growth the Bitcoin last year (2021).
After an interesting lesson previously in the academy, I was introduced to a very good indicator by the name of the MEDIAN indicator. Considering that it is trend-based, I combined it with a momentum indicator such as the MACD to have a certain and concrete entry. I waited for a bearish crossover of the median indicator, that is, when the purple band takes over the green brown signaling a downtrend.
At the same point, I looked at the bearish crossover as well of the MACD signal lines which both confirm a sell. As a result, a sell order was executed with proper management taken into consideration as a stop loss was set at $20.88 and a take profit to be taken at $20.41. The screenshot of the analysis done on tradingview and the corresponding order done on my verified Binance application are shown below; Below is a 5-min timeframe;
Looking at a 1hr time to analyse is seen;
Upon execution of the trade, the candlesticks were signaling a bearish market for a while before eventually closing at the stop loss price.
As earlier iterated, the Polkadot coin is threatening to overtake the Ethereum coin as it is still at an early price at the moment. It should be noted that this is not financial advice but my perspective. It goes beyond the simpler tasks that the native Ethereum cannot solve at the moment and does it at an even faster pace.
Presently the current price of the Polkadot stands at $20.47 but it has an ATM of $54. It enables transfers between cross-blockchains of any data or asset type, not necessarily only tokens.
Deutsch Telekom, which is Europe’s largest telecom company, has supported the dreams and the projects of the Polkadot. Also, its subsidiary, T-Systems Multimedia Solutions, has bought a huge amount of the DOT and aims to provide infrastructure to users that want to stake assets Polkadot. Some of the projects of the Polkadot are listed as such;
- Acala Network (ACA) – developed mobile wallets like the Polkawallet.
- Moonbeam(GLMR)
- Clover Finance (CLV)
- Efinity (EFI)
- Centrifuge (CFG)
Buying a portion of the Polkadot which is still in an early stage is a recommendation that I may give to others as they have a plethora of projects they can back on as just 05 are listed above. It again is not financial advice but for those who are willing to risk it as it is but imperative that all traders and holders have to trade or hold only how much they are comfortable with losing in the worst case scenario.
For like the 10th time today, it should be noted that all what has been written is not financial advice but should be treated with caution. Even though personally, I hodl the DOT coin, I think proper research should be done by users before embarking on whatever they feel is correct. The different projects that the Polkadot offers are promising and it is very difficult to look at it from this point that in the nearest future, this particular coin will not reach for the sky as it is already competing with ETH 2.0.
CC: @pelon53