Crypto Academy Season 3 Week 6 For Prof @reminiscence01
Explain CoinGecko and why it is a good cryptocurrency investment tool.
ANSWER
Every month, the amount of cryptocurrency available grows exponentially, making it difficult for crypto fans to determine which altcoins are good for short-term speculation and which are suited for long-term investments.
In actuality, there was no objective quantitative method for determining a coin's worth. The majority of attempts of valuing cryptocurrencies rely on the usage of market cap, a number that is extremely easy to manipulate.
This is where specialist services that track statistics and fundamental elements that influence the value of a coin come to the rescue.
Coinmarketcap was created to deal with the monitoring and display of basic statistics, as well as a variety of analytical resources and tools that provide objective information on the role of fundamental market forces. This software includes its own set of features for presenting statistics as well as gathering and analyzing data.
The service currently offers fundamental market analysis and tracks 8,740 cryptocurrencies from 485 exchanges.
The service tracks the dynamics of community growth, developer activity, notable fundamental events, and on-net indicators in addition to price, trading volume, and market capitalization.
Explore CoinGecko and explain at least 5 unique features of the platform (Take a screenshot of the page).
ANSWER
To explore CoinGecko, go to https://www.coingecko.com
- Top table of cryptocurrencies
Traditionally, the home page presents an extensive table of the top 100 cryptocurrencies sorted by market capitalization, with a price chart for the last 7 days, the current price and 24hrs volume.
- Portfolio
Another feature of CoinGecko is the ability to form a virtual portfolio of cryptocurrencies.
In the future, the portfolio will display the current balance in real-time, based on the current rates of the selected cryptocurrencies.
Maintaining a virtual portfolio is important not only for novice traders but also convenient for investors who want to monitor the status of cryptocurrency investments in real-time.
- Top Decentralized Exchanges Platforms
Another feature of CoinGecko is that it presents an extensive table of the top Decentralized Exchanges by their Trading Volume
- Recently added
This feature presents a Recently added list of coins by date and time added to CoinGecko. Sorting by the current rate, change % in 1 hour, and 24hrs trading volume.
- Resources - Yield Farming
Resources - Yield Farming feature contains a table of Yield farming liquidity pools, with a choice by capitalization or the amount of collateral. There is also a volatile loss and calculated annualized return percentage calculator.
Give a brief explanation of Tradingview platform.
ANSWER
Anyone who has ever traded has realized that prices for the same asset on multiple platforms can vary dramatically. This can happen in the case of cryptocurrencies due to a lack of liquidity because the smaller the trading volumes, the wider the spread, and so the closing values of transactions might vary dramatically. Furthermore, trading platforms frequently participate in a so-called clearing on their own or recruit huge players, luring them in with various bonuses and favourable terms in order to generate volumes and clear order books, simulating frantic activity.
The view of the same asset at different exchanges can frequently be remarkably different as a result of such manipulations. This is why getting 100 percent accurate quotes is impossible. Different brokers and exchanges will always have different charts. In such a situation, a new trader has no idea who to trust, why the data differs, or where to begin. The difference may be tiny changes; in fact, it might be of little relevance. But it is critical that we determine the market's direction of movement: whether it will increase or decrease.
As a result, it's worthwhile to take a look at the charts of a different standard website.
What is the TradingView platform?
TradingView is a service that offers traders an online price movement chart, as well as an entirely independent source of helpful information (economic news, current statistics) and a professional social network. They can share their thoughts and opinions here, and newbies can learn helpful information.
Charts with quotations, which have a wide range of functionality and a set of essential features for every trader, are one of the service's primary advantages. You can see the price movement of numerous assets, such as equities, bonds, futures, fiat currency, cryptocurrencies, etc. As an investor or trader, by using TradingView, you can check your exchanges for good faith, compare and analyze what information they present to you, whether it matches the quotes that exist in real-time.
TradingView Benefits
You can use many sorts of templates and charts to save all of your thoughts on a chart;
You can utilize a variety of scripts, indicators, and alerts;
Use elite traders' ideas as a springboard for your own;
Compare and contrast tools;
Look into economic news, as well as public and private discussions.
Explain the steps involved in adding indicators on Tradingview chart. You can add any indicator of your choice except moving average. (Screenshots required)
ANSWER
- Goto https://www.tradingview.com and create your account
- Click on chart
- Select your preferred asset you want to have a chat on
- Click on indicators and strategies icon fx
There will be a dropdown of lists of indicators, search for the preferred indicator you wish to use. (For this task, I'll use Ichimoku Cloud indicator) - On the search bar, fill Ichimoku Cloud
- Once the Ichimoku Cloud indicator appear from the list, click on it.
Once that is done, the indicator will appear on our chat
With relevant screenshots, illustrate how to modify the indicator you have added to your chart.
ANSWER
Inputs
The inputs enhance the effectiveness of the indicator. This changes the length and periods averages that will be visualized by each line. To modify this:
- Go to the settings icon of the indicator on the chart page
- Click on Inputs and modify
Style
This is a setting that takes care of all the indicator's line and their colors. Traders may change these colors and as they deem fit, and they can exclude any of the indicator lines as well. To modify this:
- Go to the settings icon of the indicator on the chart page
- Click on Style and modify
Visibility
This is a setting that takes care of the appearance of the indicator. To modify this:
- Go to the settings icon of the indicator on the chart page
- Click on Visibility and modify
In your own words, explain cryptocurrency Portfolio and Watchlist.
ANSWER
Since there are many cryptocurrencies in the world of crypto recently, it will become impossible to manually keep monitoring the majority of them, but we might have a special interest in some, while we might have invested our fund in some, and for the purpose of having our investment under close watch creates the necessity for Portfolio and Watchlist.
A cryptocurrency portfolio is a collection of available coins that are expected to generate profit for their owners, and this list determines the success of investments.
Our portfolio might be in our account on exchange sites (Coingecko.com, Binance exchange, coinmarketcap.com, e.t.c), or Crypto wallets (Trust wallet, coinomi wallet, imtoken wallet, etc.)
Explain the need for Portfolio management.
ANSWER
Portfolio management is the list of assets, from 3 assets and above which we have acquired after doing our studies, research, analysis, and also considering our capital, and it can also be seen as a list of assets which we wish to keep track of over a specific period of time.
Portfolio management refers to the process of collecting various types of assets in a specific percentage of the total amount of an investment proposal and keeping track of them.
The list of coins in the portfolio should be modified after a certain period.
Diversification in the distribution of investment funds into assets is another aspect of portfolio management. This is a required practice in order to save the majority of the funds in the event of a loss. If you invest in 20 projects at the same time, for example, and one of them fails, your losses will be only 5% of the entire money invested.
Select 5 cryptocurrency assets you wish to add to your Watchlist and explain your reason for selecting each of them.
ANSWER
TRX
Sentimentally, TRON has always been my favourite asset that I believed in
Technically, Tron (TRX) was once an ERC-20 token built on the Ethereum network but now has its own platform called TRC.
TRX remains very cheap and is likely to hit a minimum of 1 dollar in the near future. Tron's price increased from $0.03 in 2020 to $0.14, which has benefitted many. As Tron's price has recently fallen to $0.063, it would be a big benefit to invest in it. Market Cap Rank is 29
Steem
Steem is a cryptocurrency that looks promising.
Steem coin is used in rewarding content writers on the steemit decentralized social platforms.
Steem can also be earned through investment in steem power and using the power to vote quality content; therefore, as the author claims rewards after seven days of writing, a certain percentage will be given to the investor for voting the article.
Steem current price: $0.48, and Market Cap Rank is 211
DogeCoin
DogeCoin has been doing wonderfully well recently. Right from time, this coin price was very low prices; however, it has taken a turn around, and its value has increased miraculously.
The current value of DOGE is $0.2, and Market Cap Rank is 8
SHIB
SHIB has been one of the fastest-growing coins lately, and its fame has begun to spread across the blockchain. Shiba Inu was born from an experimental project. And its aim is to outshine its competitors. e.g. Dogecoin.
SHIB current value is $0.00000625, and Market Cap Rank is 39
BTT
TRC10 token BTT was created on the TRON blockchain. The initial goal of BTT is to tokenize the largest file-sharing network on the planet. BTT tokens are awarded to users who share entire files stored on their storage devices.
BTT can be traded and exchanged for other cryptocurrencies.
BTT current value is $0.0028, and Market Cap Rank is 57
CONCLUSION
Cryptocurrency Investment Tools in an essential aspect that every investor, trader and novice must understand to actualize profit from their investment in the world of cryptocurrency. Keeping track and asset monitoring is essential through the portfolio, and also portfolio management helps to minimize the risk involved in investments.
Cc: @reminiscence01