Steemit Crypto Academy|Season3 Week5|| Death Cross and Golden Cross, How to use Binance p2p trade by @yousafharoonkhan

Hello friends,

It's week 5 already of season 3. Special thanks to @yousafharoonkhan for his wonderful lecture. Thank you. Below is my homework task.

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Question no 1:
Define Death Cross and Golden Cross in your own words. And what is the significance of DC and GC in trade? And what effect do these two have on the market?(in your own words.)

Death cross

The death cross is a chart pattern that indicates a major sell-off is imminent.if an asset's short-term moving average falls below its long-term moving average, a death cross appears on the chart. The 50-day and 200-day moving averages are often the most prevalent moving averages utilized in this pattern.

The X-shape generated when the short-term moving average dips below the long-term moving average is known as the death cross. Both the long-term and short-term moving averages have historically preceded a lengthy decline. The death cross indicates that an asset's short-term momentum is weakening, but it is not always a solid warning that a bull market is nearing its end.

Golden cross

bullish signal occurs when a relatively short-term moving average crosses over a long-term moving average in a chart pattern and it is known as the golden cross. A breakout pattern which is bullish is generated by a security's short-term moving average ( 15-day MA) breaking above its long-term moving average ( 50-day MA) or resistance is known as the golden cross.The golden cross, which is strengthened by large trade volumes, signals a bull market on the horizon, as long-term signs hold more weight.

Significance of Both

1- Using Moving Average Lines to indicate the average movement of price, DC and GC highlight changes in the market trend.

2- Because the moving average lines closely track the price movement, DC and GC point to dynamic regions of support and resistance. Because the price is trading under the moving average lines when a death cross occurs, the 50 MA and 200 MA function as dynamic resistance. Similarly, when the price is trading above the moving averages, the 50 MA and 200 MA function as dynamic support when the golden cross occurs.

3- For investors who use the indication, DC and GC present trading chances. When the golden cross appears, for example, investors can believe that the asset's price would rise, indicating a purchasing opportunity.

Effect of Death cross

A death cross is considered a negative indication, indicating that a possible downtrend is on the way.

The consequence of a death cross in the market is that it can induce fear, uncertainty, or doubt in the market, limiting upward rises and causing panic selling by more sellers.

It is not always correct, as the death cross does not necessarily indicate that the trend will finish.The result of a death cross in the market, however, is that it is a bearish indicator, indicating that a potential downtrend is approaching and that sellers are going to take control of the market and drive the price lower.

Effect of Golden cross

The effect of the golden cross in the market is that it can induce FOMO, which drives more buyers to enter the market and push the price up.However, the golden cross is not always correct, as it does not necessarily guarantee that the uptrend will continue. Nonetheless, the golden cross has a bullish influence in the market, indicating that an upswing is on the horizon and that buyers are going to seize control of the market and drive the price upward.

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Question no 2:
Explain the points given below.
2a. How many days moving average is taken to see Death cross and Golden cross in market for better result and why?
2b.How to see death cross and golden cross on the chart.
2c.Explain Death cross and Golden cross on the chart, (screenshot necessary)

Answer to 2a

A short-term 50-day moving average and a long-term 200-day moving average are used to calculate the moving average days for a death cross and a golden cross. This DC and GC configuration provides a long-term forecast of price movement, indicating a long-term trend. This aids investors in avoiding phony trends.

When a death cross happens, the trend is believed to be a strong bearish trend that might extend for hours, days, weeks, or even months.

When the golden cross occurs, the trend is believed to be a powerful bullish trend that can endure for a long time; in other words, an increase in the price of an asset can last for hours, days, weeks, or even months.

Answer to 2b

• i visited trading view Website , then click on chart

• click on indicators

• search for moving average

• when moving average result is displayed, i clicked on it twice to add 2 MA lines,then i closed the window.
• i went ahead and set my moving average days since it comes with a default of 9days.
• i clicked on setting, to set 50days for short term and click OK i changed the colour by clicking style

• i also clicked on setting in other to change the day for the second MA, to change it to 200 long term,and clicked OK. I clicked also on style to change colour.

• moving average lines will be displayed on chart.

Answer to Question 2c

The chart depicted above is a 15-minute BTC|USD chart. When the green line, which represents a short-term moving average, crossed over the red line, representing a long-term moving average. This means that the price of Bitcoin will rise, and investors employing the golden cross approach will interpret this as a bullish reversal signal to raise their Bitcoin token purchases.

The chart above shows a 15-minute BTC|USD chart. It depicts a death cross, in which the long-term moving average's redline crosses above the short-term moving average (green line). This indicates that Bitcoin's price will fall, and investors utilizing the death cross technique will interpret this as a bearish reversal signal to sell their Bitcoin tokens.

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Question no 3:
3a What is Binance P2P and how to use it ?
3b How to transfer cryptocurrency to p2p wallet?
3c How to sell cryptocurrency in local currency via p2p (any country or coin)(screen shot neccessary to verify account)

Answer to 3a

Binance is a centralized cryptocurrency exchange with peer-to-peer trading. Binance's peer-to-peer technology allows users to buy cryptocurrencies for free with their local cash. A person can choose their preferred counterparties and payment methods for trading on Binance P2P.The p2p (peer to peer) exchange feature on Binance is comparable to decentralized exchanges in that transactions are initiated by the buyer and seller and controlled by smart contracts in the form of escrow services. Binance's crypto assets are escrowed.

When a person wants to buy crypto, the seller's local currency account details will be displayed, the person buying will have to transfer the amount and create awareness that payment has been made, the seller will have to release the crypto held in the escrow service during the transaction once payment is confirmed. This process will help prevents fraudulent deals.

Individuals can click on the advertising to exchange fiat or crypto-assets with verified dealers, and the balance of the transaction will be paid to the individual's crypto Binance wallet or local bank account

Binance just facilitates the transaction and does not intervene, unless in the event of a dispute between the buyer and seller, in which case a third party (from Binance) will intervene and decide the dispute using evidence presented by the parties.

How to use Binance

• Visit the Binance website and log in to your Binance account to use p2p on the Binance exchange.
• After that, input your login information and click Login.
• Double-check captcha and cellphone number security.
• When you've logged into your account, go to wallet and select p2p.

• The p2p section will appear, displaying the coins that are available and the activities that can be taken. They are as follows:

1. Send
   This option on the p2p sites indicates that crypto-assets can be transferred from one p2p account to another.

2. transfer
   This option on the p2p page means that crypto-assets can be transferred from the p2p wallet to other Binance wallets, such as the spot wallet.

3. Buy
   Traders/investors can buy crypto assets using their local currency using this option on the p2p page.

4. Sell
   This option on the p2p page implies that traders and investors can sell their crypto assets and get payment in their local currency.

Answer to 3b

• open binance app

• The asset is placed on spot then click Wallet

• input the coin you want to transfer, in my case, i choose BNB

• input the amount of coin you want to transfer, then click transfer.

• A successful message will pop-up

Answer to Question 3c

• After successful transfer, i click on P2P trading, then input the amount of BTC i want to sell

• it will take me to the market where i can look for buyers with good rate.

• then i will click on sell.

Question no 4:
What are the things to keep in mind during P2P trade and descrbe its four advantages and disadvantages.(own words)

Answer to 4a

• Available Constraints/Quantity Range - Because each seller has their own limits, the available limits or quantity range is also very significant. A vendor may make a good offer, but the buyer may not fulfill the seller's minimum quantity requirement. As a result, it's critical to look into the seller's limitations.

• Price Rates - Before buying or selling on P2P, it's critical to check currency exchange rates. The goal of any trading is to find the best deals. However, “too good to be true offers” should be avoided because they are more likely to be scams.

• The number of successfully completed transactions is critical. Users who have completed more successful deals are more likely to be trusted traders.

• Receipt of the token confirmation
Check that the equivalent in local money has been received before releasing the crypto asset. This eliminates money-laundering and other types of fraud.

• • The reputation of the dealer
Checking the dealer's account profile to see if they are verified is the first step. Then look at their reputation by looking at a few of their trustworthy upvotes (it's usually expressed as a percentage). 89 percent and higher are the highest ratings. Following that, the dealer's total number of transactions (anything above 1000 transactions is good).

Answer to 4b (Advantage)

• Managing transactions with smart contracts (escrow). This contributes to the enhancement of money security and safety.

• Binance's peer-to-peer trading platform supports a variety of local currencies. These encourage greater active participation in the cryptocurrency community.

• Selling crypto to fiat is a quick way to obtain money into your local bank account.

• Another benefit of adopting P2P is that there are no charges or fees because buyers and sellers can conduct peer-to-peer transactions without paying any expenses.

Answer to 4c (Disadvantage)

• If the fund is misplaced, there is no way to recover it.

• since it is an open market, phony dealers build profiles to deceive those who don't have much experience using p2p trading.

• When using P2P, transaction delays from the buyer or seller can be a major issue. Some vendors or purchasers conduct transactions slowly, which might be an issue for those that require payments quickly.

• Time wastage as a result of buyers or sellers failing to complete transactions. Another major issue with P2P is this. Buyers and sellers may occasionally fail to finish or cancel transactions.

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cc;
@yousafharoonkhan