Steemit Crypto Academy | Season 3: Week 5 || Death cross & Golden cross, How to use Binance P2P trade.home work post by@chimezunem001
Hello everyone am writing in response to the homework task given by professor @yousafharoonkhan which he taught about the death cross and golden cross together with how binance p2p work indeed it was a great teachings here is my homework post thanks for reading through.
First question is to define death cross and golden cross
A death cross is an applied chart pattern demonstrating the potential for a sell-off. The death cross shows up on a chart when the stocks short moving average crosses beneath the long-term moving average.
Ordinary, the most widely recognized moving midpoint utilized this example are the 50-day and 200-day moving midpoint or average.
The golden cross usually occurs when the short-term moving midpoint line crosses the long-term moving midpoint and then passes it.
Fundamentally, the short-term average moves up quicker than the long-term average until they cross. In other words the golden cross can only take shape or be seen on a chart when a stock short-term moving average exceeding it's long-term moving average.
The golden cross can go against the death cross to indicate or show a falling price movement. a golden cross tells us that there will be a long-term bull market getting on. It's good to study the golden cross carefully and use it correctly before putting on a trade. Because sometimes it fails to manifest, it's advisable to verify it with other signals and indicators before you can place your trade.
To my understanding, I think the golden cross has its significance on the market as it helps traders to predict market movement. Also to indicate a trending market going forward.
- ON DEATH CROSS
The significance of the death cross may be considered a dependable indicator for approaching low price in trading as the market swings something and experience a downturn so during this period investors use the death cross as an opportunity to increase their long-term position.
- THE EFFECT OF THE TWO ON THE MARKET
for death cross, during this period market experience bearish making investors lose on their invested asset. yet, it isn't generally a solid pointer that a positively trending market is going to end.
In other words, the time of death cross should not be the time to sell as many traders think. It is important to note as a trader that when a death cross occurs sometimes it takes time for the market to recover, sometimes also for a short period.
- ON GOLDEN CROSS
In simple words, the outcome of the golden cross on market is providing information about the market trend, and giving traders bullish warnings so they will know whether to sell or still, keep.
Question no2
A. There are two moving averages on DC and GC which are the short-term market trend and the long-term market trend.
To see the death cross and golden cross in the market, traders have to set a 50days short term moving average and a 200-day long term moving average reason is because to identify an upward trending market and downtrend.
Downtrend happens when it's trading below 200 days moving average while upward trending exists above 200 days moving average. The 50 days short term trading average is to know the strength and weaknesses of the asset. In other words, the 50 days line should be considered almost one of the first things when you want to analyze your asset.
B. HOW TO SEE DEATH CROSS AND GOLDEN CROSS ON THE CHART.
I used binance to see the death and golden cross. first, I opened my binance app them pick spot trade and opened the chart
At the down side I clicked on Ma I.e moving average and at the top right corner I clicked on the setting icon and a page display
- them I clicked on index setting
- clicked on MA
- them I set my long-term moving average and short term-moving average which is 200 and 50, them change the color to green and yellow and them click on to confirm.
death cross and golden cross
C.
Now from the above chart screenshot, the green line set at 50 days moving average is the death cross and it indicate when an set is weak or downtrend. Sometimes the downtrend can last For long-term or short-term too.
While the yellow line crossing above the green line in the chart is the golden cross traders loves to see this action as it indicates uptrend.
QUESTION NO.3
P2p is a way of exchanging assets between two or more parties but they must first reach an agreement or negotiate the price of the asset first before it's transferred. Now let look at some special features introduced in binance p2p.
Binance provides escrowed in their p2p market to avoid scams. In binance p2p you are allowing choosing the person you want to trade with and also a preferred means of payment method. Binance p2p enables you to purchase bitcoin and altcoins with your local currency without charging.
HOW TO USE IT
To use binanc p2p what you have to do first is to download the Binance the app, create an account them open and verify your account.
After that is completed them you log in And carry out your transactions.
HOW TO TRANSFER CRYPTOCURRENCY TO A P2P WALLET
The asset is in the spot wallet already so to transfer to p2p wallet you have to click on transfer
Them a page will display showing you from spot to the wallet u want to transfer to
Them click that small arrow to see a list of wallets you desired to transfer to but we are dealing with p2p so we chose p2p
Them you put the amount of asset you want to transfer to
Them click on transfer
Successfully you have transferred to your p2p wallet.
HOW TO SELL CRYPTOCURRENCY IN YOUR LOCAL
CURRENCY.
After your successful transfer to p2p wallet them you click on p2p trading.
To sell usdt you put the amount of usdt you want to sell and click on sell. It will take you straight to the market to look for buyers with good rates to deal with
Am dealing the buyer above who has completed 302 trades and has a reputation of 89% ill click on sale.
QUESTION NO.4
Things you have to keep in your mind during the p2p trade is that when selling there is always a duration to fill a transaction quote. and if the duration has passed and the buyer you're dealing with did not complete the trade it will cancel.
Secondly, after dealing with the buyer he sends money first them you confirm if you have received the money before you release the coin. It's not advisable to release coin before the buyer send money.
Also, keep in mind that after the buyer has sent the money and you refuse to release the coin them he goes to appeal with all evidence, binance will release the coin to him and them give you a bad reputation so traders will be afraid to deal with you.
Also, an important thing to keep in mind is before you deal with any trader in p2p check the number of successful trades he/she has completed and reputation too to avoid dealing with a scammer.
- it is secured due to the provision of escrow service
- the support of multiple payment methods
- low trading fee compared to charges in exchange
- countries were crypto exchange are ban just like Nigeria can use the p2p trade.
low liquidity
trading speed can be slow at times, for instance, after an agreement between both parties one can decide to delay a transaction or postpone it for silly reasons like they forgot, or low battery, bad network, etc.
Also sometimes after reaching an agreement one party may change its mind halfway. Due to maybe the problem which they need the money for has been solved such scenario this are problem and challenges attached with p2p market.
It was great teaching by professor yousafharoonkhan I have learned a lot from this class about the death cross and the golden cross which I have never heard about before. Thank you for reading my homework post.
Hi @chimezunem001
Thanks for participating in the Steemit Crypto Academy
Feedback
This is good work. Thanks for demonstrating your understanding of the GC, DC and the Binance P2P trading.