Steemit Crypto Academy – Season 3 - Week 3 - Post for @allbert

Question 1 - Select two Crypto, perform fundamental analysis, and based on your fundamental analysis explain why you chose them

Cryptocurrency investment is one of the most talked about topics in the crypto space at the moment, as more and more people are coming across and adopting cryptocurrency, the rate of investments are increasing as well. So far, we have seen so many cryptocurrencies attain all-time highs and gaining popularity and attention all around the world. Bitcoin isn’t the only crypto any more as there are more and more cryptocurrency investment opportunities available. New and old investors are always on the lookout for amazing cryptocurrency projects to invest in, with great potential.

When it comes to cryptocurrency investments, fundamental analysis is super important as it would help any investor filter out cryptocurrency projects with very good potentials, both in the short and long term. In the large pool of different cryptocurrency projects containing both the good and the bad, it is always important to take fundamental analysis very seriously before making any investment decisions. Hence, that is why fundamental analysis is very essential when it comes to cryptocurrency investments.

Orion Protocol OGN

Orion Protocol is one of the popular cryptocurrency projects in the crypto space at the moment. Orion Protocol is basically a decentralized finance project and one of the main functions and core concepts Orion Protocol is liquidity aggregation from the various top liquidity providers such as the crypto exchanges. It is an open-sourced project that was created to become the most advanced liquidity aggregator and also, to solve some of the marjor problems in decentralized finance space. Orion Protocol operates by collecting the liquidity that is provided across various cryptocurrency exchanges a unified universal API. Simply put, what Orion Protocol does is that it aggregates the liquidity that is provided by all the market into a single decentralized finance platform.

Orion Protocol - Social Reach

Orion Protocol is one of the growing cryptocurrency projects in the crypto space at the moment with a pretty decent size community. The Orion Protocol community on twitter is pretty large with over 75k twitter followers and active engagements on their posts. they are also active on telegram with over 16k members in their telegram group and also have LinkedIn profiles.

Project Purpose

The main purpose of Orion Protocol project is to build and become the most advanced liquidity aggregator in the crypto space and also provide solutions some of the challenging problems in decentralized finance. Also, Orion Protocol continues to create beneficial and useful tools that provide DeFi solutions.

Orion Protocol - Team

Orion Protocol team consists of both talented and professional developers and creative who share the same goal to build the most advanced liquidity aggregator in the crypto space and also provide solutions some of the challenging problems in decentralized finance. The Orion Protocol are working to continue creating tools and providing DeFi solutions. The Orion Protocol project was founded in the year 2018 and was launched a year ago in 2020 by Alexey Koloskov. The project team consists of a good number developers, creatives, professionals, advisors who are highly skilled and experienced professionals who are knowledgeable in blockchain technology, and share the same goal of the project.

Source

Orion Protocol Statistics

Market capitalization - $265,413,077
Fully Diluted Market Cap - $739,817,151
Circulating Supply - 316,728,501.54 OGN
Total supply - 1,000,000,000 OGN
All Time High - $3.39
Current Price - $0.745
All Time Low - $0.1032

Orion Protocol Exchanges

Orion Protocol is listed on a variety of top exchanges such as Coinbase, Binance, Kucoin, Huobi, Bittrex, Uniswap, Gate, Probit and a number of other exchanges.

Polygon - MATIC

Polygon is also one of the popular cryptocurrency projects in the crypto space at the moment. Polygon was formally known as Matic Network before it was rebranded. Polygon is basically an easy to use and well-structured platform that was built for scaling ethereum and infrastructure development. The main component of the Polygon platform is the Polygon SDK which is a modular and flexible framework that allows the development of different types of applications. Polygon is a Layer 2 scaling solution that seeks to solve the scalability issues of many blockchains.

Polygon - Social Reach

Polygon hasn’t been around for a long time in the crypto space and is also one of the growing cryptocurrency projects out there with a pretty decent size community. Polygon has a large community on twitter with over 535k twitter followers and active engagements on their tweets. They are also active on telegram with over 55k telegram members and also have an active community on discord as well. Polygon are also active on other social channels like reddit, youtube. Over the past months, Reef finance have made some really good partnerships with other projects and are also actively partnering with other projects that adds value to the reef ecosystem.

Project Purpose

The main purpose of Polygon project is to effectively transform Ethereum into a full-fledged multi-chain system. Also, Polygon was created to be the framework for building and connecting blockchain networks that at compatible with ethereum. Also, creating scalable solutions on Ethereum.

Polygon - Team

Polygon was launched way back in 2017 and was co-founded by Jaynti Kanani who is an experienced blockchain developer, Sandeep Nailwal who is also an experienced blockchain developer, and Anurag Arjun, who is a business consultant. The Polygon team share the same goal to help ethereum become scalable and effectively transform Ethereum into a full-fledged multi-chain system. The project team consists of a good number developers, creatives, professionals, advisors who are highly skilled and experienced professionals who are knowledgeable in blockchain technology, and share the same goal of the polygon project.

Source

Polygon Features

• ETH Compatibility
• Scalability
• Security
• Sovereignty
• Interoperability
• Modularity
• User Experience
• Developer Experience

Polygon MATIC Statistics

Market capitalization - $5,048,130,574
Fully Diluted Market Cap - $7,974,230,659
Circulating Supply - 6.33Billion MATIC
Total supply - 10,000,000,000 MATIC
Max supply - 10,000,000,000 MATIC
All Time High - $2.68
Current Price - 0.7974
All Time Low - $0.003012

Polygon MATIC Exchanges

Polygon MATIC is also listed on a variety of top exchanges such as Coinbase, Binance, Kucoin, Okex, Huobi, Kraken, Poloniex, Bittrex, Uniswap, Gate, Probit and a number of other exchanges.

Reasons why I choose them

Both Projects aims to bring solutions - One of the main reasons why I chose both projects is the idea and projects concepts. Orion protocol was created to become the most advanced liquidity aggregator and also, to solve some of the major problems in decentralized finance space. Polygon was created to bring scaling solutions to ethereum and to effectively transform Ethereum into a full-fledged multi-chain system. This is very important for me as I always look out for what the projects have to offer and what makes them stand out in the crypto space before making any investment decisions.

Both cryptocurrencies prices are below their all-time highs - This is also what I look out for before investing in any cryptocurrency project. Looking at their price stats, you can see that they are still below their all-time high prices which for me is great. Any quality project that is below its all time high can be a great investment because when it eventually reaches or surpasses its all time high, it would yield more profit.

Both Projects have solid teams - this is also what I look out for before investing in any cryptocurrency project. Both projects have highly skilled and professional team that are continuously working to create innovating solutions in the crypto space.

Large community on social media - this is also very important for me. I like projects with large community because it means that there is more exposure to the project which can help bring in more investors that would drive the price up.

Question 2 - Make a real purchase of one of the cryptocurrencies selected in the first assignment and explain the process.

I will be demonstrating how to purchase MATIC on Okex exchange. To do this, we have to first deposit funds into the account. This is what i will be using to purchase MATIC on Okex. I will be showing how to deposit USDT into the exchange account

After signing in into the okex exchange account, go to assets and click on it.

Select deposit from the dropdown.

There are various options to deposit funds into Okex exchange. For this, I will be choosing the USDT on tron blockchain becausae it is very fast and have low transaction fees.

After selecting the USDT on Tron network, click on continue to proceed. Copy your USDT tron address to deposit USDT tron into okex.

After sending the transaction, wait a little for the deposit to confirm. Once the confirmation is completed which takes few second to minutes, it is time to purchase MATIC.

Go to markets and click on it.

On the markets page, there are a variety of cryptocurrencies to trade. For this, i will be selecting MATIC. Click on Trade to proceed to purchase MATIC

On the exchange platform, click on the BUY side,
Select the markets tab because we want the exchange to automatically select the best market price and also for the order to fill immediately.

Input the amount of USDT you want to purchase MATIC with. For me, i selected 100% to use all the available USDT to buy MATIC. The amount of MATIC will depend on the total USDT i am using and the market price. My 11USDT was able to purchase over 13 MATIC at the current market price.

Click on Buy MATIC

The next page is the confirmation page, click on confirm to execute the buy trade.

To view the buy order transaction history, go to the buy order tab, you will see your buy order history.

Question 3 – Make a simulated exercise, using the DCA method to perform the purchase of two assets and present charts showing the data of days in which the operation was performed, price of purchases, average price, sell point, percentage of profit or loss.

When it comes to cryptocurrency investment, dollar cost averaging is a very popular risk management strategy that is used by many investors to minimize risk and also used to make more profits. Dollar cost averaging is simply a strategy that many investors use to capitalize on market price fluctuations in order to reduce risk and make profits. Dollar cost averaging is basically a strategy that involves an investor buying a selected cryptocurrency asset in smaller amounts over a period of time instead of buying bulk at once.

Simply put, dollar cost averaging is when an investor splits his/her investment capital into smaller parts and uses each small part to purchase a selected cryptocurrency asset at a time, like each day, week, month until the whole investment capital is used. This can be a great idea especially in the cryptocurrency market where prices of cryptocurrencies move up and down. For instance, an investor with $100 investment capital might decide to split the $100 capital into 5 parts for 5 weeks. The investor would spend $20 each week to purchase the desired cryptocurrency. At the end of the 5 weeks, the investor would definitely have different amounts of coins for each week since the prices in each week will be different. The average for the 5 weeks would determine the average price spent to invest the $100 for the total amount of coins. This can lead to more profit if the price increases significantly. Also, it can reduce losses if the price continues to decrease.

REEF

For this demonstration, I will be using an investment capital of $100 to invest in REEF, I will split the $100 capital into 5 parts of $20 each. I will use each $20 to invest in REEF each week and at the end of the 5 weeks, I will sell all the coins.

REEF/USDT

Buy prices

On Week 1 - $20 bought 569.72 REEF at $0.035105

On Week 2 - $20 bought 475.34 REEF at $0.042075

On Week 3 - $20 bought 621.79 REEF at $0.032165

On Week 4 - $20 bought 571.49 REEF at $0.034996

On Week 5 - $20 bought 497.22 REEF at $0.040224

Total amount of REEF at the end of 5 weeks = 2,735.56 REEF

Average Buy price

At the end of week 5, my average buy price was 0.035105 + 0.042075 + 0.032165 + 0.034996 + 0.040224 = 0.184565

0.184565 divided by 5 weeks = 0.036913

I bought REEF at an average price of $0.036913

Sell Price

After my 5 weeks purchase, I held the coins for 6 days before selling. I sold all the 2,735.56 REEF at $0.051510

2,735.56 REEF x $0.051510 = $140.9086956

Profit made: $140.9086956 - $100 capital = $40.9086956

I made a profit of $40.9086956 from my DCA

Percentage of profit

The percentage profit made is 40.90 %

VET

For this demonstration, I will be using an investment capital of $200 to invest in VET, I will split the $200 capital into 5 parts of $40 each. I will use each $40 to invest in VET each week and at the end of the 5 weeks, I will sell all the coins.

VET/USDT

Buy prices

On Week 1 - $40 bought 512.046 VET at $0.078118

On Week 2 - $40 bought 459.205 VET at $0.087107

On Week 3 - $40 bought 431.383 VET at $0.092725

On Week 4 - $40 bought 397.654 VET at $0.100590

On Week 5 - $40 bought 309.497 VET at $0.129242

Total amount of VET at the end of 5 weeks = 2,109.785 VET

Average Buy price

At the end of week 5, my average buy price was 0.078118 + 0.087107 + 0.092725 + 0.100590 + 0.129242 = 0.487782

0.487782 divided by 5 weeks = 0.0975564

I bought VET at an average price of $0.0975564

Sell Price

After my 5 weeks purchase, I held the coins for 6 days before selling. I sold all the 2,109.785 VET at $0.236582

2,109.785 VET x $0.236582 = $499.137

Profit made: $499.137 - $200 capital = $299.137

I made a profit of $299.137 from my DCA

Percentage of profit

($499.137 - $200 / $200) x 100

The percentage profit made is 149.56 %

Conclusion

Investing in cryptocurrency can be risky, however, if done correctly, can yield great profits. When it comes to cryptocurrency investments, fundamental analysis is super important as it would help any investor filter out cryptocurrency projects with very good potentials, both in the short and long term. In the large pool of different cryptocurrency projects containing both the good and the bad, it is always important to take fundamental analysis very seriously before making any investment decisions. Dollar cost averaging is a very popular risk management strategy that is used by many investors to minimize risk and also used to make more profits. Dollar cost averaging is basically a strategy that involves an investor buying a selected cryptocurrency asset in smaller amounts over a period of time instead of buying bulk at once. This can be a great idea especially in the cryptocurrency market where prices of cryptocurrencies move up and down.

@allbert