Crypto Academy / Season 3 / Week 6 – Homework Post for [professor @reminiscence01] Cryptocurrency Investment Tools
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Hello steemians, am glad once again to participate in this week’s lecture and homework task. I read through the lecture and have learned a lot through it. Thanks, Prof @reminiscence01 for this great lecture on cryptocurrency investment tools. To this, I will be answering based on the professor’s task.
Explain CoinGecko and why it is a good cryptocurrency investment tool*
CoinGecko is a crypto platform that was initiated in 2014 by TM Lee and Bobby Ong as the co-founders. It is the world’s largest cryptocurrency platform with a reliable source of data where traders or investors can assess trading information on different cryptocurrency assets. This platform is where traders gain access to investment tools that help them to be able to analyze different crypto assets, thus their market statistics for an entry of investment.
Investors use this platform to get certain information ranging from the market cap, market circulation, last 7 days trade view and so on, etc of different crypto assets to be able to know the type of assets to trade on if it will profit them or not.
Explore CoinGecko and explain at least 5 features of the platform (Take a screenshot of the page)
Visit the site – https://www/coingecko.com/ to be able to explore the different features of this platform.
Coins
You can locate this at the opening page of the platform, this is where you find the categories and table of top cryptocurrencies based on their different market capitalization displayed as well as their price chart, 24 hrs volume and last 7 days displayed as shown in the screenshot below.
Recently added
This is another feature you will find on the platform, this feature shows the list of recently added coins to the platform based on their current rate, 24 hrs trading volume, etc. as shown in the screenshot below.
Large Movers
This is another feature that is found on the platform, this feature displays the largest gainers (top gainers) and losers (top losers) in crypto with their 24hrs volumes and prices as shown in the screenshot below.
Custom Tabs
This is a new feature on the platform where you can create, as well as assess your account by typing in your email address and password to sign up as shown in the screenshot below.
Resources
This is another feature that displays how to earn crypto, compare coins based on their market value, and this is where you can explore all coins in the crypto market, assess yield farming as well as check the latest news about a particular cryptocurrency as shown in the screenshot below.
Give a brief explanation of Tradingview platform
Tradingview is a cryptocurrency platform that is the online base where traders spot a good time for investment using the analysis tools and charts present in the platform. This platform consists of different tools which are used for the analysis of charts ranging from candlesticks, indicators, etc.
These tools present in the platform are what traders use on price charts displayed on the platform for different coins to analyze the trend movement of assets to enable them to spot a good buying or selling period to invest.
Explain the steps involved in adding indicators on the Tradingview chart. You can add an indicator of your choice except for the moving average. (Screenshots required)
For this task, I will add a vortex indicator to my chart.
First, you have to visit: https://www.tradingview.com/
Then I clicked on the “Menu” bar at the top left corner of the opening page, this took me to a new page where I clicked on the “Chart” option
After clicking on the chart option, it redirected me to the charting interface where I now clicked on the “indicator” icon at the top corner of the page.
After clicking the indicator icon, a pop-out window showed where I then searched for the Vortex indicator and it displayed, then I clicked on it and it was added to the chart as shown below.
With relevant screenshots, illustrate how to modify the indicator you have added to your chart
The following steps were taken to modify the Vortex Indicator I added to the chart as shown below:
First, I clicked on the indicator bar that I just selected and then clicked on the “setting” icon as shown below
After clicking on the setting icon, a pop-out window appeared where I had to click on the “Input” option to change some parameters, and also on the “Style” option and then lastly on the “Visibility” option to change the Vortex Indicator parameters as shown below
In your own words, explain cryptocurrency Portfolio and Watchlist
Cryptocurrency Portfolio
Cryptocurrency Portfolio is the group of cryptocurrencies and other digital assets that are owned by a trader or investor. The portfolio helps the trader to check and also observe the movement of the crypto assets he or she owns if it is in a bearish or bullish trend to know when to invest and also make a profit.
Cryptocurrency Watchlist
Cryptocurrency Watchlist is a list where cryptocurrencies can be chosen and added by a trader or investor to watch, observe and also analyze the trend movement of the asset added. On adding the cryptocurrency or asset on the watchlist, it gives the trader an optimal opportunity to follow up how the asset is moving daily, if it is in a bearish or bullish, thus, a good investing time for the trader. Being able to analyze the asset in a watchlist allows the trader to make a profit out of his or her investment.
We know that we have several widespread crypto assets in the crypto market, and since there are much, a trader can't watch the moving trends of all the assets at once, that is why cryptocurrency Watchlist is an option to aid the easy observation of the selected crypto assets before adding to the cryptocurrency portfolio.
Explain the need for Portfolio management
Portfolio management is one of the criteria for a trader to achieve maximum profit in crypto trading. Every trader who is capable of managing his/her cryptocurrency Portfolio is bound to avert the risk of liquidity. Every trader or investor invest to make a profit and loss.
The crypto assets in the crypto market are volatile, at some point, a swing high or swings lows are experienced in the market trends of assets, These swings which are caused by some unforeseen circumstances cause the volatility of assets. So to be able to assess the trends of assets, a trader has to understand the type of asset he/she is dealing with, being able to watch, observe, analyze the asset, using technical indicators and candlestick patterns will aid the trader to know when to open a trade and when to close to make a profit. This process is what we mean by Portfolio management. Portfolio management helps traders to monitor the trends in the price of an asset selected if it is in a bullish trend or a bearish trend, thus enables the trader to know the possible buying or selling time of the assets to make a profit or optimal yield of his/her investment.
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).
Tron (TRX)
This is a cryptocurrency asset I will wish to add to my watchlist because it is a passive income coin, it is cheap this gives a good chance of reaching a better price shortly. Technically, it has a drop in price to a lesser percentage which will be a great advantage to invest in it now before it makes a breakout.
Litecoin (LTC)
This is another cryptocurrency asset I would love to add to my watchlist based on its high market cap, and it is also popular, widely, and highly demanded in the crypto market.
Ripple (XRP)
Ripple is another cryptocurrency I would like to add to my watchlist due to its high market cap, and its popularity. It is also one of the major digital currencies that is widely accepted with a high circulating ratio. It is also highly demanded in the market.
Steem
Steem is another passive income coin I will love to add to my watchlist. Steem is a promising coin to invest in because it has promising growth shortly. It is a coin that is earned via its blockchain platform and these earned coins can help in covering up for losses acquired by other cryptocurrencies. Steem at present is on the high side of growth, technically, it is experiencing a bullish move on its price, meaning more demand for it in the market.
Ethereum
Ethereum is another cryptocurrency I will like to add to my watchlist. It is gradually moving on the high side in its value with a high market cap. Apart from this, it is widely known and demanded in the market. Because it is well known for its smart contract and its developing projects on its blockchain makes its cryptocurrency with a greater possibility of growth in its value.
Conclusion
Cryptocurrency investment tools are very important and necessary tools that will aid an influx of growth for a trader or investor. Every trader aims at growth, not loss. so if an investor properly understands and puts to use the investment tools, such a trader stands a chance of acquiring more wealth as he/she gains more profit. As a trader it needful to understand the basic investment tools and their usage as they will help in making a profit rather than running liquidity.
Thanks, Prof. @reminiscence01 for this wonderful lecture.
Hello @evegrace , 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:
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