Steemit Crypto Academy Season 3 Week 6 - Beginner's Course | Cryptocurrency Investment Tools Homework post by @ebuahsang1

in SteemitCryptoAcademy3 years ago (edited)


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Pinterest, Edited in postermywall"

Hello fellow steemians and my co- students. I am happy to have joined this community and studying from these esteem professors. Professor @reminicence01 just did an amazing job with this lesson. Thank you. Here is my homework post

1. a) Explain CoinGecko and why it is a good cryptocurrency investment tool.

CoinGecko.

Developed by Tim lee who acts as the CEO and Bobby Ong the COO, CoinGecko is a platform that provides information needed by cryptocurrency traders. The platform is based in Singapore and was created in 2014.

In a statement to Coin Rivet Bobby Ong one of co founder said that Market capitalisation is entirely not a great measure of crypto currency worth as they can be manipulated. This is the idea behind CoinGecko, not only to give value to a token base on Market but to provide it users with vital information such as;

  • The team behind the coin
  • keeping track of the GitHub
  • Community development/ growth
    And other important variables (events or actions) that can impact the token.

b) Explore CoinGecko and explain at least 5 unique features of the platform (Take a screenshot of the page).

In an effort to explore CoinGecko, we will first need to visit the CoinGecko official website. I will be using the phone interface and so it will look a little different from that of a laptop. The homepage will look as follows.


Screenshot_20210805-141623_1.png

Review CoinGecko.

From the homepage, we are able to see the following;

  • Coins = 8799
  • Exchanges = 487
  • Marketcap = $1,634,352,824,786
  • 24hrs vol = $111,542,238,750
  • Dominance coins
    Just to name a few.

Using a phone, to explore the special features that are found on CoinGecko, we will need to click on the three lines that are located at the top left corner on the home page.


Screenshot_20210805-201343.jpg

When we click on it, we will be navigated to interesting features like Coin, Exchange,DeFi, Publications, Resources, NFI, Products, Podcast. For the purpose of the assignment, I will be reviewing 5 of them.

Screenshot_20210805-141657_1.png

Coin.

Market cap rank, Categories, Recently added, Discover, High volume, Large movers, Derivatives ( Perpetuals, Futures, leveraged EFTs) are amongst the unique features you will find under coin.


Screenshot_20210805-141710_1.png

When you click on any of this features information patterning to the feature will be displayed. Let's use the example of Futures. When we click on it, it takes us to the Top Cryptocurrency Derivatives (Futures Contract) by Open Interest & Trading Volume. See the screenshot below.

Screenshot_20210805-143817_1.png

Exchange.

The Exchange feature gives us information about the difference exchange platforms that can be used by traders to do trading. Under this feature we have Spots, which gives us the spots of all exchange platforms, Dex, which gives top decentralized exchange platforms by volume, and Derivatives which give top Derivative Exchanges by Open Interest & Trade Volume.


Screenshot_20210805-141729_1.png

Defi.

Using this feature, traders are able to see the top 100 decentralized Finance coins that are available by their market capitalization. Along with this feature we have graphical representation of these assets for the use of traders.


Screenshot_20210805-141827_1.png

Publications.

This feature gives information like Crypto report, Podcast, Newsletter, Blog, Books ( How to Bitcoin, How to DeFi), Guides (CoinGecko buzz, Glossary). Clicking on one of this for example Crypto report, it's give you reports in different years on Crypto currency.


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NFT

The NFT feature offers users with information about the top 100 NFT coins that are in the market. NFT stands for Non Fungible Token and are digital assets with unique characteristics. The feature give the market capitalization of NFT and the trading volume.



2. a) Give a brief explanation of Tradingview platform.

Tradingview.

Trading view is an online charting platform that is used by over 30 million traders all over the world. Established in 2012, it has added tremendous value to the trading world. Tradingview is not only a charting portal but also a social network platform where traders get to chat and share ideas. The platform can be accessible by any one in any country of the world. It has no geographical limitations . Tradingview is unique in that

  1. It gives traders the ability to draw anything on charts.
  2. Traders can split the screen on the platform to have a better picture. This can help in analysing chart movement in relation to time.
  3. Sharing of ideas between traders. This has made traders to be accountable, track progress and benefit from fellow traders.

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

Tradingview as we already know is a charting platform and it permits users to add indicators on charts. The following steps are involve when you want to add an indicator on a chart.

First of all, you will need to login if you have an account on Tradingview.


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After login, you will see an interface like the one above. There are 3 lines at the top left corner of the interface, when you click on it, you will be able to see a list of items starting with charts, click on the charts.

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When you click on Chart a new page will load showing chart of a chosen asset.
For the sake of this example, we will be using EURUSD chart.

Screenshot_20210805-161852_1.png

To add an indicator on the chart, we will click on the fx indicators icon at the center top of the charts.


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After clicking on this, various indicators will be displayed. We can scroll down to select the indicator we will like to use. I will be using the Bollinger bands. And so I will click on Bollinger bands.


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After selecting Bollinger bands we can see how it has appeared on the chart.

Screenshot_20210805-162402_1.png

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

Also, Tradingview gives traders the opportunity to modify indicators on the chart.
To modify the Bollinger bands indicator we added earlier, we will click on the indicator bar that is on the top of that chart.


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To change the settings on the Bollinger bands indicator, we will click on the setting icon. An interface will appear where we can change the input, properties, visibility and style.


Screenshot_20210805-162459_1.png

I will change the input length of the Bollinger bands from 20 to 50. You can see the change of the Bollinger bands as shown below


Screenshot_20210805-162520_1.png



3. a) In your own words, explain cryptocurrency Portfolio and Watchlist.

Cryptocurrency Portfolio.

Cryptocurrency Portfolio Is software that allows users/traders to keep tract of all the value of crypto assets that are in their holding in one place and provides us with analytical tools.
In a cryptocurrency portfolio, you can simply add any coin that you have purchased and the amount and then you can follow the performance of your coins in one place.
Cryptocurrency Portfolio gives a real time data and updates of all the currencies in your holding.

Cryptocurrency Watchlist.

This is a group of coins or currency that a trader keeps in list before adding the coin to his or her portfolio. Most coins or Crypto assets that are added on the portfolio are first of all added on the watchlist. Traders always add assets to their watchlist so as to monitor closely for any change in the asset.

b) Explain the need for Portfolio management.

It is very important for traders to manage their portfolio for the following reasons.

  1. Diversify investment/ Reduce Risk.
    Portfolio management is a good way for traders to diversify their investment thereby reducing the risk of investigation. Investing in a single crypto asset can be risky in case of loss.

  2. Minimize losses.
    One of the main advantage and need of portfolio management is that it minimizes losses. That is to say, when you add assets to your portfolio, in case some assets are performing poorly, the other assets in the portfolio can cover up for it

  3. Reduces stress and save time
    Portfolio management reduces stress in that the trader doesn't need to always visit different sites of all the assets that he is holding which is also time consuming.

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).

My selection for cryptocurrency assets are


Screenshot_20210805-184049_1.png

  1. BTC. It is no news that Bitcoin is the largest and biggest crypto asset in the world right now. I put it on my watchlist because I am a newbie to the world of crypto currency and hoping to invest in it this year. Definitely BTC is a must invest for me. It has large market capitalization and huge trading volume daily. Always on CoinGecko high volume.

  2. Steem. Ever since I understood the concept of Steemit I fell in love with the crypto currency. I believe Steem is the currency of the future. I choose to add it to my watchlist because I believe in the value if the currency. The fact that it is earned through social platform by people interacting give it a bright future. The trading volume over the years is a great reason too..

  3. SBD. The trading volume of SBD is good. And with an increase in the number of people buying it, I think it has great prospects for growth.

  4. Tron. Tron is another great asset I believe in. Looking at the top 100 coins with trading volume on CoinGecko, Tron is one of the coins. The increase in market volume as at the time of this post was about 3.4%. This is a great coin.

  5. ETC. Etherium classic is also another currency that I will love to add to my portfolio. Ranked number 18 on CoinGecko, it has a great trading volume in the last two hours. I hope to invest in this coin.

Conclusion.

I honestly want to thank professor @reminiscence01
For this lesson. I didn't know about CoinGecko. I have seen that CoinGecko is a great platform to use as I intend to go into Crypto currency.
Also, Tradingview view as I have read and research is an awesome portal to use. I have been frustrated with Meta4trade demo account and I gave up. But understanding tradingview has been great.

Thank you professor.

CC.
@reminiscence01

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Hello @ebuahsang1 , I’m glad you participated in the 6th Week of the Beginner’s class at the Steemit Crypto Academy. Your grades in this task are as follows:

CriteriaRatings
Presentation / Use of Markdowns1/2
Compliance with topic1.5/2
Spelling and Grammar1/2
Quality of Analysis1.5/2
Originality1.5/2
Total6.5/10



Recommendation / Feedback:

  • The student have completed the assignment for this lesson.
  • The student also answered all the questions in his/her own words.
  • Your overall presentation is not good. You need to improve your writing skills by working on your markdown styles.
  • Your explanations are superb.

Thank you for completing your homework task.

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