CRYPTO ACADEMY SEASON 3 WEEK 6/ CRYPTOCURRENCY INVESTMENT TOOLS/ HOMEWORK POST FOR @reminiscence01

QUESTION 1

a) Explain CoinGecko and why it is a good cryptocurrency investment tool.
b) Explore CoinGecko and explain at least 5 unique features of the platform (Take a screenshot of the page).

CoinGecko is a cryptocurrency platform that was created in 2014 by TM Lee and Bobby Ong to deliver every information of cryptocurrency assets to investors and potential investors in order to help them make right decisions in the crypto market. The platform offers information like: market statistics of the asset, ideology behind the cryptocurrency asset, the growth of the asset and many others. It is operated from Singapore. It give the fundamental analysis of the cryptocurrencies

It is a good cryptocurrency Investment tool because it offers its users the background data or information of over 6,000 crypto assets. The CoinGecko platform also offers its users with news in the crypto market that has the potential of having impacts on the value of assets. The information given for an asset when combined with correct technical analysis of the asset helps investors make right decisions and achieve their aim of making profit. It also keeps track of the assets which is also very helpful.

EXPLORING COINGECKO

CoinGecko compares and ranks different crypto assets based on various factors which can be: MarketCap, volume changes usually for the last 24 hours, all time high and all time low etc.
In the home page of the platform you would see a variety of crypto assets next to each asset we see the price of it, the market capitalization of the coin, its percentage increase or decrease in the last (1 hour, 24 hours and 7days). The asset’s 24 hour volume is also displayed. Currently Bitcoin is ranked 1st with a price of $41,499.34.

UNIQUE FEATURES OF COINGECKO.

• TRENDING SEARCH AND MOST VOTED COINS: This is a unique feature of the platform that displays of the most searched assets in recent times the coins that have been voted on the most recently. This feature can be accessed by clicking on coins and clicking on discover.
  

• COINGECKO CANDY: this is a feature available for only registered users. This feature rewards its users for using coinGecko. This candies received as loyalty rewards can be exchanged for goodies in the candy reward store. You can access this feature by clicking on the candy jar on the top right corner of the page after logging in.

• COINGECKO NEWSLETTER: coinGecko also has a feature called newsletter, this feature makes it possible for users to receive daily trending or latest news in the crypto market in their emails. This helps in making fundamental analysis in the market. You can access this feature by clicking on publications and selecting newsletter from the dropdown menu.

• COINGECKO TRUST SCORE: when using CoinGecko the exchangers are ranked according to its trust score. This is a feature that helps to fight against the use of fake exchangers by unsuspecting investors. This is always scored out of 10 based on: liquidity, scale, team, incidence API coverage and cybersecurity. This can be accessed by clicking on EXHCHANGES then select spot and choose the exchange you want to explore.

• COINGECKO PORTFOLIO: This is a feature on coingecko that allows you to select your favourite assets and be monitoring them as when you like easily. You first need to log in then click on the star near the asset you want. Then access them by clicking on portfolio.

QUESTION 2

a) Give a brief explanation of Tradingview platform.
b) Explain the steps involved in adding indicators on Tradingview chart. You can add any indicator of your choice except moving average. (Screenshots required)
c) With relevant screenshots, illustrate how to modify the indicator you have added to your chart.

EXPLANATION OF TRADINGVIEW.
Tradingview is an online trading platform for crypto trading. It provides investors with charts of crypto currencies and inbuilt indicators that are used during technical analysis. The platform also provides users with drawing tools to help make technical analysis easier. Traders are also able to share their own indicator scripts with others in the public library.

ADDING INDICATORS ON TRADINGVIEW.

• First of all you need to open to the homepage of the platform by clicking on this link then click on charts.

• The new page will appear showing a chart of a pair in this case ETH/USD pair but you can change it to your preferred pair. You then click on the indicator icon denoted by (Fx) on the screen.
  

• A new menu containing the list of indicators will be displayed for you to select, you can also search for the indicator you wish to use. I will be using the balance of power indicator.

• From the chart it shows the addition of the indicator.

MODIFYING THE INDICATOR.
From the chart you click on the indicator menu and select the settings icon from the list.

From this menu you can customize the indicator to suit you likes.

• As seen in the chart above I customized the indicator to a blue histogram shape.

QUESTION 3

a) In your own words, explain cryptocurrency Portfolio and Watchlist.
b) Explain the need for Portfolio management.
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).

CRYPTOCURRENCY PORTFOLIO
This is a marketing strategy employed by crypto traders to try and minimize losses in a case where losses are incurred. This is a practice when an investor invest in a variety of crypto assets at the same time

WATCHLIST.
This refers to collection of cryptocurrencies a trader has selected to be monitoring and tracking. This is a feature available on many trading platforms. This makes it easy for a trader to monitor a few assets out of the many.

NEED FOR PORTFOLIO MANAGEMENT
Portfolio management is very important in crypto trading because it helps traders to cut losses when losses are incurred. The primary aim of every investor is to make profit. When a variety of assets are chosen and invested on and in a case where certain assets perform so poorly that losses are incurred there will be certain crypto assets that will yield profit in order to reduce the losses.

BITCOIN
I wish to add Bitcoin to my watchlist because it saw a dip in value and is now on its way to building a bullish trend. Bitcoin has so much dominance in the crypto market so it has impact on many other coins so knowing its movement will help in tracking others as well.

DOGECOIN.
I will add dogecoin on my watchlist because it has been rallying on the support level for some time now and will be breaking through the support level pretty soon.

CARDONA
It seems to me that this coin has seen some increment in value in the past days and it looks set to set into a bullish trend.

Terra Luna
This asset has been on the rise for the past week and has seen some decrement in the last days so it is important to watch it carefully so that if its necessary for you to take profit you do so.

AXS
This crypto asset has been unto the resistance level and is seeing a trend reversal so I want to monitor when the price drops to the support level I will then make purchase of the asset.

CONCLUSION
In crypto trading there is a lot of risk involved and in minimizing these risk we need to have some vital information on the assets on the crypto market to guide us in making decisions. We can use platforms like CoinGecko in getting these information and we can also use features like watchlist to monitor assets of interest to us. Thanks to professor @reminiscence01 for such a wonderful lecture.