Steemit Crypto Academy Season 3 Week 6 - Homework Task for @reminiscence01 | Cryptocurrency Investment Tools
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Hello everyone, I hope you're all doing fine. The same goes for me.
In this post, I'll be posting a homework task for crypto professor @reminiscence01
As you can get an idea from the Title, The homework will be based on Cryptocurrency Investment tools, and these are some of the essential tools which we use to make trading decisions. We'll talk about trading websites like CoinGecko and trading view. We'll see some indicators that one can add to the charts while making trading decisions.
I'll be explaining these platforms using fully referenced and markdown images from various sources. You can also reach out to me in the comment section in case of any problems and issues.
A) Explain CoinGecko and why it is a good cryptocurrency investment tool.
Image Showing the founders of CoinGecko.
CoinGecko was founded by Bobby Ong and TM Lee in the year 2014.
It is a website that aggregates the cryptocurrencies data and tracks the price, volume and other vital aspects. To be put in simple words, it provides stats for a cryptocurrency using Market cap
CoinGecko has collaborative relations with the Western University of Canada and Burlin Humboldt university. With the help of these two universities, coinGecko produce cryptocurrency-based stats and research.
According to the claims made by the company, coinGecko has an annual revenue of $ 3 million, and it works with 3,587 different crypto tokens from over 259 Exchanges.
coinGecko is the world's largest Crypto data tracking company with around 6000 different crypto tokens, currencies coins and other crypto-assets with more than 400 worldwide exchanges.
The company claims that they have more than 200 million monthly page views on the official CoinGecko website.
There are more than 10 million users who visit the website on an average monthly basis.
They have an Android app with across a million downloads and 10 billion monthly API calls.
CoinGecko has become the world's largest source in providing Data on cryptocurrencies and other crypto assets and is frequently publish articles across the industry with many prominent publications like :
- Forbes
- The Wall Street Journal
- The Block
- CNBC
- CoinDesk
- Decrypt
- Quartz
- International Business Times
- Bitcoin Magazine etc.
Here are the people behind coinGecko.
Image Showing Coingecko team
From a user and a trader point of view, it is essential that the user can view and compare live feed and other helpful information like current price, inflation rate, the total number in circulation, and price charts. CoinGecko shows it all with a vast number of depth-oriented details by which the user can make a detailed analysis of a crypto asset and further continue investment.
The image below shows the interface of the website.
Image showing the website CoinGecko
- Let us take an example of bitcoin. We'll see the various stats that the website will provide us.
As we can see in the image above, at first look, the website shows price, rank, 24-hour trading volume, total supply, max supply and many other precise details. It uploads and changes the data every minute, which promotes preciseness and accuracy in the trading market.
image showing Bitcoin price chart.
You'll see the price charts and all-important stats in tabular form if you scroll down a bit.
In case of Bitcoin the current stats are:
BTC Price $44,275.75
Market Cap $834,387,242,503
Market Cap Dominance 44.22%
Trading Volume $46,268,851,508
Volume / Market Cap 0.0552
24h Low / 24h High $40,708.27 / $44,672.15
7d Low / 7d High $37,595.75 / $43,774.68
Market Cap Rank #1
All-Time High $64,804.72 -31.7%
Apr 14, 2021 (4 months)All-Time Low $67.81 65210.3%
Jul 06, 2013 (about eight years)
The website shows all the stats using Market Cap and contains a filter called Show Stats.you can turn it on and see the current Market cap stats.
Current Stats According to image :
Market Capitalization : $1,869,522,971,255(8.9%)
24h Trading Volume : $146,079,161,389
Bitcoin Market Cap Dominance : 44.12%
#of Coins : 8802
B) Explore CoinGecko and explain at least five unique features of the platform (Take a screenshot of the page).
I'll be Explaining the following five features:-
- Coins
- Exchanges
- Portfolio
- Publications
- Resources
- When you hover the cursor to the "Coin" tab present at the top, it will open a drop-down menu, and you can choose from the following actions:-
Market Cap Rank
Recently Added
categories
Discover
Large Movers
High Volumes
Derivatives
Perpetuals
Futures
Leveraged ETFs
Market Cap Rank - it shows the cryptocurrency prices by market caps.
Recently Added - it shows the newly added cryptocurrencies.
categories - it shows cryptocurrency categories ranking is based on market capitalisation.
Discover Coins - it shows the trending searches, most voted coins and positive sentiments of the cryptocurrencies.
Large Movers - It shows the prominent gainers and losers in the crypto market.
High Volumes - it shows the Top 100 Coins by their Trading Volumes.
Derivatives - It contains 3 sub-tabs namely Perpetuals,Futures,Leveraged ETFs.which shows Cryptocurrency Derivatives categorised by Open Interests & Trading Volumes on all 3 categories.
Image Showing Exchange tab.
The tab contains a drop-down menu that includes three sub-categories: Spot, Dex and Derivatives.
Spot - tab shows the records of crypto exchanges that offer spot services.
DEX - DEX is decentralised Exchanges calculated by trading volume.
Derivatives - derivative shows contact trading exchanges and their information.
It shows the performance of the cryptocurrency added to your portfolio. as you can see, in my case, I don't have any currency in my portfolio.
In such a case like mine, you can Push the Add New Coin button and select the coin you want to add. Then you can view the performance of that currency in your portfolio.
Image showing Publications tab
It contains a drop-down menu, as shown in the figure above, which indicates three Operations, i.e.:
Crypto Reports
Newsletter
Podcast
Blog
Books: How To Bitcoin, How To DeFi
Guides CoinGecko Buzz, Glossary
It contains all the written information about the platform, like crypto reports, newsletters, podcasts, blogs, books, and guides. You can click on any of them if you need any kind of info.
Image showing Resources Tab.
The resources tab contains three sections from which the first section is divided into five resources, and there are two other groups, namely Public Companies Treasury and In the News.
Earn Crypto
Yield Farming
Compare Coins
Explore All Coins
Bitcoin Halving
Public Companies Treasury: Bitcoin Treasury & Ethereum Treasury
In The News: Beam Updates & Latest News
Earn crypto
Image showing Earn Bitcoin resource.
By using this resource, you can start earning bitcoin. the steps are as follows:-
Firstly, you have to deposit the amount you want to invest in the bitcoin and choose a trading platform from the menu, as shown in the image above. It will select Nexo as a default, and you can also change it if you like.
Secondly, hit the Start earning button, and you'll be able to earn bitcoin.
Yield Farming
image showing Yield Farming resource.
This resource gives the Top Yield Farming Pools calculated by Value Locked. It also contains features like Market Cap, Impermanent Loss Calculator, APY calculator.
Compare Coins
Image showing Compare Coins feature.
- This resource allows a user to compare two cryptocurrencies, as you can see in the image above. You just have to fill in the name of the cryptocurrencies you want to compare and then hit the compare button present on the right side of the screen. It will show all the comparison details in tabular form.
Explore All Cryptocurrencies
Image showing Explore All Cryptocurrencies Resource.
- This resource shows all available cryptocurrencies and their detailed stats like the coin, symbol, rank,24-hour volume, price and many other details as shown in the figure.
Bitcoin Halving
- This resource shows the time frame of an event when the reward for mining bitcoin transactions is cut to half.
The other two groups provide information about the common Bitcoin and Etherium treasury and show the latest news and updates about the cryptocurrency blockchains.
A) Give a brief explanation of the Tradingview platform.
Tradingview is one of the best platforms for a trader. It provides traders facilities like social interaction with each other and market discussion.
The platform provides a vast sum of screeners and charting tools crucial to a trader when making market studies, which helps a lot in making trading decisions.
Some features enable traders to carry out technical analysis and customise their charts with the help of customising tools.
It also provides demo trading options such as paper trading.
It also contains a public library where users can have access to publish their indicator scripts for other traders to access across the world.
Image showing Trading view Platform.
B) Explain the steps involved in adding indicators on the Tradingview chart. You can add any indicator of your choice except the moving average. (Screenshots required)
To add an indicator to a chart, steps are as follows:
Step 1:
Go to the Tradingview website and click on the chart icon at the top.
Image showing Chart icon.
Step 2:
Go to the indicators tab and search the indicator's name that you want to insert into the chart. as shown in the figure
Image showing Indicators tab.
Step 3:
To apply an indicator, you have to search the name of the indicator in the search bar.
image showing Ichimoku cloud indicator.
NOTE:Here, I am inserting the Ichimoku cloud indicator into the chart. There is no particular reason for that. I just read about it in a recent article, and now out of curiosity, I am applying this indicator.
Step 4:
Click on the selected indicator, and it will be placed on the chart of the cryptocurrency.
As you can see, the Ichimoku cloud indicator has been applied to the chart successfully.
C) With relevant screenshots, illustrate how to modify the indicator you have added to your chart.
It is very easy to modify an indicator. just follow the steps given below :
Step:1
Click on the Settings icon present on the indicator.
Image showing settings icon.
Step:2
A popup menu will appear, and from that menu, you can change the indicator values, colour styles and visibility patterns according to your likings.
Image showing popup customisation menu.
Click ok when you're satisfied with the customisation that you've made to the indicator.
You can change the chart and candles' inputs, colours for the indication, and the visibility of other indications.
Style
Image showing style modification menu.
Visibility
Image showing visibility modification menu.
If you've accidentally altered the wrong set of information, then there is no need to panic. You can always set the default settings from the same menu.
Image showing default option.
A) In your own words, explain cryptocurrency Portfolio and Watchlist.
- A portfolio is like a record book for the cryptocurrency market. The traders use the portfolio to maximise the profit and minimise the chances of loss. A portfolio contains a record of the trader's assets like tokens, coins, currencies etc. which the trader selects to monitor potential gains. After making his own analysis on the crypto assets, the trader invests the funds to the assets and cut those who are not making progress. He compensates for the losses by investing more in those assets that are making good profits.
A watchlist is very similar to a portfolio, but the only difference is that the items in a watchlist are only getting observed. the funds will be invested after it'll become a part of the portfolio/
As there are quite a large amount of cryptocurrencies, a trader cannot practically view all the currencies or assets. The solution to this problem is that he targets some of the crypto assets that show the potential of growth and then add them to the portfolio and start investing in them.
crypto-assets can also be selected by doing Technical and fundamental analysis on the cryptocurrency.
B) Explain the need for Portfolio management.
A crypto trader minimises loss by adding funds to different currencies and assets present in his portfolio through thorough research and planning. The cryptocurrency is highly volatile in nature and can show large uptrends and downtrends or sudden reversals up to 40%.
The assets which are not performing good in the market will get a cut in the fund supply to minimise the loss.
Through which diversification of the assets is Done.- It is crucial for an investor/trader to understand the significance of portfolio management, as it helps minimise losses and promote growth. And with the help of diversification, Asset allocation can work adequately, which is solely based on RIsk Management and prevention.
- an investor should have a perfect idea about asset allocation and risk tolerance when creating a portfolio.
C) Select 5 cryptocurrency assets you wish to add to your Watchlist and explain your reason for selecting each of them. (Show screenshot of your Watchlist. It can be any platform).
Here I am using tradingview website to create a watchlist.
I have chosen the following five cryptocurrencies on my watchlist.
- Bitcoin
- Etherium
- Cardano
- Polkadot
- Stellar
Image Showing my Watchlist.
It is undeniable that one can choose bitcoin due to its skyrocketing value and no.1 Crypto Asset Ranking. It shows great potential in the market and mostly shows bullish trends, which triggers uptrend reversals. A very valuable and active crypto asset like this should be one's first priority.
Image showing current bitcoin price from CoinMarketCap
At the time of creating this post, the value of bitcoin was 43,525.87.
This one is self-explanatory from my side as it is the no.2 cryptocurrency and was incorporated by well-known financial institutions like Goldman Sachs and Bank of America to boost their services. It is still far behind bitcoin, but the fact that it still holds its position in the crypto market shows that it has a great rising potential and one should definitely invest in it.
The current value of Etherium is $3050.78
Image Showing Current Value of Etherium from CoinMarketCap
The team that created the Cardano created its blockchain through extensive experimentation and peer-reviewed research. The researchers have written over 90 papers on blockchain technology across a range of topics. This research is the backbone of Cardano, and this is what makes Cardano one of the great contenders among cryptocurrencies. It is a rank 5 cryptocurrency in the crypto world.
The current price of Cardano is $1.45.
Image Showing Current Value of Cardano from CoinMarketCap
It has a relay chain as a core component that provides interoperability of varying networks. I choose it by seeing its price chart on trading view. I think it contains the potential to be a profitable asset as it holds a market capitalization of $11.2 billion, and one DOT trades for $12.54.And it holds 9th position in the crypto market.
The current value of Polkadot is $20.39.
Image Showing Current Value of Cardano from CoinMarketCap
I choose this as a potential asset by viewing its price chart and seeing some interesting candle patterns. It holds 20th rank in the crypto world. It was introduced as an open blockchain network to provide enterprise solutions by connecting financial institutions for large transactions.
- The current value of Stellar is $0.3018.
Image Showing Current Value of Stellar from CoinMarketCap
There is a lot of risks involved with the cryptocurrency market and asset acquisition. A trader should have a very good knowledge of the tools and platforms available in the market.
Personally, I recommend both of the platforms CoinGecko and Tradingview to the traders who want to use tools and analytics to make trading decisions.
Risk analysis is critical in the crypto market, and I have learnt that one can do it with the help of portfolios and watchlists—this help to minimise the loss and maximise the profit. These indicate which assets funds should be invested and from which the supply should be cut off.
Being able to gather such knowledge, I am truly blessed and wanted to thank professor @reminiscence01 to deliver such an amazing task.
This will be all from my side.
Thank you for reading.
@reminiscence01
Hello @ashucypher , I’m glad you participated in the 6th Week of the Beginner’s class at the Steemit Crypto Academy. Your grades in this task are as follows:
Recommendation / Feedback:
Thank you for participating in this homework task.
Thank you professor.
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