Exchange Coins - Crypto Academy S5W1 - Homework Post for @imagen

Hello great steemians and welcome to this week's task by @Prof Imagen.

QUESTION 1

Perform a complete analysis of the currency of some exchange. Not allowed: BNB, KuCoin, Cake and Uniswap.

I will perform a complete analysis on one currency which is BUSD.

HISTORICAL BACKGROUND OF BUSD

Source

BUSD is regarded as Binance USD. It is a stable coin which is founded by Binance and Paxos. It gained approval from New York State Department of Financial Service. September 5th 2019 was the date it was fully launched with the purpose of bringing stability in US dollars with blockchain technology.
BUSD has three key areas which are flexible, speed and accessibility.
It is built as ERC-20 token which supports BEP -2 token.
Ethereum, Binance Smart Chain, and Binance Chain are the three blockchain that this token exists.

How is BUSD different from other stablecoins?

There could be many reasons attributed to the difference between BUSD and other stablecoins which Is a fiat backed category of stablecoins.

BUSD is ranked 18 on the coinGecko. The price of BinanceUSD as at the time of this analysis is $ 1.00 today and the 24-hour trading volume is $ 5,933,485,940. The price of BUSD has risen 0.3% in the last 24 hours. The distribution volume is 13 billion BUSD and the total supply volume is 13.1 billion. If you want to buy or sell Binance USD, Binance is currently the most active exchange. as shown below:

Source

The Binance USD (BUSD) markets as at the time carrying this analysis is screenshot and displayed below:

Source

The BUSD chat showing the price after 24hours as at the time of this analysis is displayed below;

Source

The market Cap Chart was also screenshot as thus:

Source

The tradingview chart was also screenshot as thus:

Source

Some of the importance or benefits of BUSD includes; Transaction of goods and services, could be used as collateral in some digital assets and finally can be traded on different exchange platforms.

QUESTION 2

Make a purchase equal to at least US $ 15 of the currency you explained above. You must make some movement with that currency within the exchange that created that currency. Show screenshots and explain in detail the steps to follow. Example: transfer of funds, Staking, participation in a Launchpad, trading in futures, etc. Indicate the reasons why you chose that option (operation) on that platform.

There are two ways in which BUSD can be purchased.

1. First i look for the matching pair for BTC/BUSD as screenshot below:
   
   Binance app

2. I then purchased from BTC on binance account 12 BUSD as screenshot below:

Binance app

1. I then placed an order for the purchase which was done.

How I Stake My Binance USD (BUSD)

Step 1. I log in to binance account the home page and clicked on more as shown below:

Binance app

Step 2. After clicking on more i was taken to services where i scroll down to staking as shown below:

Binance app

Step 3. At staking, i shifted to Defi staking as shown bellow:

Binance app

Step 4. I scrolled and got to BUSD then i quickly click on stake now as shown bellow:

Binance app

Step 5. The amount was inputted before confirmation was made.

What are the reasons why I chose that option (operation) on that platform.

Staking in crypto is very profitable like mining.
You easily get reward without much stress or special skills.
Any investment in staking yields good profit at the long run.

QUESTION 3

Show the return on investment in time frames of 0, 24 and 48 hours from the moment you bought. Take screenshots where you can see the price of the asset and the date of capture.

Interest Period: 1 Day Redemption Period : 1 Day Est.APY : 2.89%. as shown below, hence the return of the investment will be like 0.0007918 BUSD.

Binance app

Has the asset's price acted independently or does its price strictly follow the correlation with Bitcoin?

I will answer this question by saying yes. Bitcoin is the foundation of other cryptocurrencies we have and the first digital currency.
The fact that Bitcoin is the father of all cryptocurrencies does not mean that no other coin can follow it. As you know, BUSD is a stablecoin fixed to the US dollar. In other words, the BUSD will increase each time the US dollar rises.
BTC is ranked #1 while BUSD is #17 according to coingecko as shown below:

Coingecko app

The rise of Bitcoin is also the rise of BUSD and as well the fall of Bitcoin is also the fall of BUSD since they are both regarded as digital currencies.

QUESTION 4

What are futures trading?

In a very simple sense, futures trading is a type of trade that allows traders/investors to conclude about the future value of 4,444 digital assets. In the crypto industry, futures trading is a unique form of trading that differs from spot trading in many ways.
It Includes financial contract situations. In essence, an investor enters into a contract specifying a position that is expected to be so in the future, and they gain if it is in their favor and lose if they do not.

Source

When trading BUSD using futures trading, individuals do not need to buy, sell, or hold BUSD just before they participate. Rather, the trader/investor simply watches to buy or sell the futures contract, which will tell you a digital asset of value at a specific time frame in the futures.

Any trader who invest in futures trading have more room and potential to expand their crypto portfolio, and the leverage available for futures trading makes it easy to grow their portfolio.

QUESTION 5

What is the margin market?

Source

Simply put, margin trading involves using capital borrowed from a broker to invest in things like cryptocurrency. Unlike traditional trading, margin trading has become increasingly popular in recent years as it allows you to access more capital and utilize your positions.

Margin trading is a method of trading assets with funds provided by a third party. Compared to regular trading accounts, margin accounts give traders access to more capital so that they can take advantage of their positions.
Margin markets run at the beginning of a trade and require traders to transfer a certain percentage of their total value, known as margin associated with leverage.

QUESTION 6

What happens to the cryptocurrencies of an exchange when they suffer from a hack or it turns out to be a fraud? Present at least 2 real life examples.

If an exchange's cryptocurrency is hacked, hacked or found to be fraudulent, the exchange is responsible for returning 100% or 50% of the funds to the user. Although several hacked cryptocurrency exchanges promise their customers that their funds will be refunded due to loss of company assets.

An example of a cryptocurrency exchange that has been hacked is Bitrue. Bitrue is a popular Singapore exchange that was hacked after losing $9.3 million in XRP and $2.5 million in Cardano (ADA) from a hot wallet officially announced on the company's Twitter page on June 26, 2019.

Source
The company says to its customers "personal funds are well insured" and guarantees that those affected by the hack can be exchanged for exchanges as soon as possible.

Upbit is another good example of an exchange that promises to compensate its customers for losses. Upbit, known as a popular cryptocurrency exchange in Korea, suffered huge losses when hackers escaped 342,000 ETH worth $51 million at the time of the hack on November 27, 2019.
After the company announced the hack and promised customers it would cover the loss of funds at the expense of company assets.

Source

From the two examples of exchanges that have been damaged by a hack that promise to return customers' funds, and when a cryptocurrency exchange is damaged by a hack, read the instructions that our funds are the company's responsibility and therefore are safe and your funds are safe. This means that the customer can receive all the funds or half of the funds will be returned to the victim customer.

CONCLUSION

I really want to appreciate Professor @imagen for this powerful exposition especially the latter part of the course.
I have learnt a lot about scam and fraudsters.
Also, i have been exposed to another up coming crypto currency other than BTC called BUSD.
Lastly, A trader who invest in futures trading has more opportunities and potential to grow his/her cryptocurrencies portfolio, putting his available leverage into a futures trades will easily increase his portfolio. Therefore future trading is superb. Thanks so much.

Best Regards
@charis20