Crypto Academy Season 3 Week 6 - Beginner's Course | Cryptocurrency Investment Tools-HOMEWORK for professor @reminiscence01 by @dilchamo

Entire 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).

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.

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).

Introduction

Crypto research tools are important for investors. Before investing in any cryptocurrency it is worth to familiarize yourself with few investment tools. These tools help traders to identify the price movements of the crypto market. It is risky to be in the crypto world without having a proper knowledge about crypto projects. By using proper crypto research tools traders can gather information about their desired crypto project before making an investment decision. There are many popular cryptocurrency investment tools such as:

• Messari
• Glassnode
• LunarCrush
• Coinmetricss
• Santiment
• CoinGecko
• CoinmarketCal
• Coin Dance
• Crypto Miso
• Skew

The above crypto research tools will help beginners to take trading decisions before investing in crypto projects.

Explain CoinGecko and why it is a good cryptocurrency investment tool

source

CoinGecko is one of the largest cryptocurrency research tools that provides insights about crypto data. CoinGecko was established in 2014 by TM Lee and Bobby Ong. According to the CoinGecko Website, The mission of CoinGecko is to democratize the access of crypto data and empower users with actionable insights. They provide users the cryptocurrency reports, publications, newsletters etc…
In 2020, CoinGecko launched its podcast and the world’s first DeFi book and earn section. They also have their portfolio and yield farming pages.

Benefits of CoinGecko

CoinGecko provides a fundamental analysis of crypto market and it tracks the price, volume, market capitalization, community growth, major events and on-chain metrics too.
CoinGecko’s trust score is in a high ranking for crypto currency exchanges. CoinGecko tracks other key factors rather than tracking and measuring coins and tokens by the market cap.
the CoinGecko crew wants to help investors better understand the altcoins available to them as thousands of cryptocurrencies in the market and new ones created each month, they help by giving them as many transparent and qualitative facts as possible.

The company recently launched a feature it calls “Trust Score” to combat fake exchange volume and The trading volume of exchanges are normalized using Similar Web traffic analysis and the median of users’ trading volume from the Bitwise 10 real-volume exchanges. CoinGecko contains reliable information.
There’s much uncertainty surrounding the cryptocurrency industry. So CoinGecko provides a trustworthy solution to help you decide where to invest and which exchanges traders feel comfortable using it. It provides a reliable source of information in what still remains a largely unregulated industry.

Explore CoinGecko and explain at least 5 unique features of the platform

To explore the CoinGecko, First we have to log into CoinGecko.com.

Review CoinGecko

We can find out 8789 coins in CoinGecko. It has 486 exchanges. It also shows the 24 hour volume. The details of crypto assets are listed according to their market rank. All detailed information including graphical representations is displayed in the page.

As I have highlighted in the screenshot below, CoinGecko contains many unique features when compared to other research tools. I will analyze key points those are unique and exceptional.

Coins

Market cap, Rank, Recently Added, Categories(New), Discover, Large Movers, High Volumes, Derivatives, Perpetual, Futures, Leveraged, ETFs are the features included under the key feature called “Coins.” traders can view crypto asset details according to the coin ranking.

Exchanges

Spot, DEX, Derivatives are the features you can get under the Exchanges tab. A list of exchanges is given and their detailed information is given under this tab. Traders have the ability to identify crypto assets in Exchange ranking.

DeFi

In this tab users can see the top 100 DeFi coins by Market capitalization. All details about the assets with graphical representations are demonstrated for the use of traders.

Publications

Crypto Reports, Newsletter, Podcast, Blog, Books, How To Bitcoin, How To DeFi, Guides, CoinGecko, Buzz, Glossary are the features under the publications tab. Users can read the reports, newsletters etc.. to have an insight about the crypto assets.

Resources

Earn Crypto, Yield Farming, Compare Coins, Explore All Coins, Bitcoin Halving, Bitcoin Treasury, Ethereum Treasury, Beam Updates, Latest News are the features under the resources tab. Assets are listed according to the features so that users can view the detailed information about the assets.

Products

Premium Subscription, Mobile App Store, Crypto API, Widgets, Request Form, Methodology are the features in the products tab. Users can view the mobile application, and other methodologies of CoinGecko page.

Community

In this tab users will find the social media accounts that the users can be in contact with the research tool. This is a very special feature of CoinGecko. Users can join Twitter, Telegram Chat, Telegram News, Instagram, Reddit, Discord, Facebook and Youtube channels.

Traders can check their desired crypto asset’s insights from different parameters.

Give a brief explanation of Tradingview platform

Tradingview was established in June 2012 as a social platform for active traders. It has a scripting language that allows traders to customize charts and indicators. It became popular among many traders because of its versatility. This stock-picking software is useful for both beginners and experienced traders. Tradingview has given the users to learn new concepts, research about market fluctuations, chat and ask questions, practice trades and many more.

In the above screenshot you can see that there are few tabs named as chart,Trade,Markets,Screeners,community and more. From those tabs traders can view different insights and features of crypto assets.

You can filter the stocks by ticker, trading ideas, educational ideas or people. The social media section of the site has an educational value. Users can find stories by authors, latest stock news, economic calendar and trending charts in the social media section.
Tradingview is a best tool to use for charting, researching and screening the traders’ favorite stocks. Users can get free research tools on the homepage and also beginners can start charting and mock trading for free before they place trades.

Explain the steps involved in adding indicators on Tradingview chart. You can add any indicator of your choice except moving average.

In the trading view users can add different indicators. I will now display step by step about way of adding indicators.
First log into Tradingview.com. In the interface of the site there is a tab named “Chart.”

Once you click on the charts you will get the trading view of the crypto currency pairs in the “Symbol search” option. When you click on that you can select the cryptocurrency pair of your choice.

There is another icon to select indicators and strategies. When you click on that you get a list of indicators and strategies which you can search and find.

I selected “Pivot Extension strategy” which is under “Built-ins”

In the below image you can see how my selected pivot extension strategy looks like. As I have selected Built-in structure, my chart is in that structure. Users can select the chart style they like.

With relevant screenshots, illustrate how to modify the indicator you have added to your chart

Traders have the ability of modifying the indicator. First we should click on the indicator bar which is shown in the chart. There are set of options which can be used to modify the chart.

To change the settings of the chart you can click the settings icon in the indicator bar. Then you can change the inputs, properties, style and visibility. This is how it looks like when I modify the settings.

Tradingview site is very easy and comfortable for new traders like us as it’s features are easy to understand and easy to handle.

In your own words, explain cryptocurrency Portfolio and Watchlist

Cryptocurrenty Portfolio

A cryptocurrency portfolio is software which manages the inventory of one’s investments. It provides you with analytical tools to track each coin’s performance. By using a portfolio traders can compare their crypto investments to see which assets are performing well. A portfolio provides real time data.
Before doing a portfolio, a user should do research on that. To make a portfolio first a user has to be concentrated on the available cryptocurrencies and the values that they are trading by using coinmarket cap or livecoin watch. Then it is better to read the cryptocurrency white papers or other research papers which shows the roadmap of the respective cryptocurrency. It is a must to follow the news and events related to cryptocurrencies as they are digital assets which may change within seconds. The cryptocurreny market is volatile.

Cryptocurrency Watchlist

A cryptocurrency watchlist is a set of crypto assets that a trader keeps in a list before going to the portfolio. it is an easy way to manage crypto assets. traders add their most favorite cryptocurrencies to the watchlist so that they can monitor the market value of the assets time to time and it is an easy asset monitoring method.

Explain the need for Portfolio management

To create a sustainable portfolio user needs to manage the portfolio in a proper way. Investors follow different ways of managing a portfolio. I will state some management strategies.

Dollar cost Averaging

Despite the token prices, DCA is an automatic system of making fixed dollar investments. When the price of the asset moves higher investor can add more shares in a strong bull market. When the prices moves lower still the investors can more shares as the fiat remains fixed.

Use a crypto portfolio tracker

A crypto portfolio tracker is software that can read the wallet data and aggregate the information into a dashboard. It helps to keep up with how much you have invested in a cryptocurrency. When a crypto currency outperforms the investor can see the large percentage that the portfolio contains.

Be rational

Many successful investors are rational about their plans and goals. There will be investment opportunities to balance the portfolio. It is good to stick to the plan.

Develop a strategic exit strategy

Successful traders think about the exit plan before they enter a trade. In this way the trader is clear about the closing price for profit and when will they close out for the loss.

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)

I have added 6 cryptocurrency assets already into my watchlist. I have already added these crypto assets into my watch list as they are my favorite assets. Adding these to the watch list has made it easier for me to trace the movements of the selected crypto assets. The cryptocurrency market list has more than 3000 cryptocurrencies. So having my favorites in the watch list easy for me when I need to monitor the asset price movements in the trading view platform.

CONCLUSION

Tradingview is a platform which is comfortable for both beginners and experienced traders to get information and insights about the investing cryptocurrency. It provides assistance to identify the nature of crypto assets before investing in them. Thank you Professor @reminiscence01for teaching us this valuable lesson. Thank you for reading my post. Have a nice day.