Crypto Academy / Season 3 / Week 3 - Homework Post @imagen || Staking, Technical Analysis and Crypto Market

Thank you, Professor, @imagen, for your lecture this week. I have learned a lot about technical analysis and I will do my best to meet up with the homework requirements.

Staking on Pancakeswap

Here, I choose pancakeswap because it is secured and profitable to stake here. Pancakeswap is a decentralized application (DAPP) and an exchange built on the Binance smart chain (BSC). Thus, assets supported by it are only BEP 20 tokens.

I am using Trust Wallet for my staking, and I will be showing how to connect here.

Step1: Open your wallet and click on Dapps. The page opens with a search space to either paste your pancakeswap.finance link or click on the link on the list of dapps available already.

Step2: The page opens and because pancakeswap is on Binance smart chain, click on the ETH sign on top right. A drop list will show, then click on smart chain. This will change the network from ETH to BSC.

Step3: Click on connect on top right to connect your wallet. When you click, a list of wallets will show. Since you are using trust wallet, click on it. You can use metamask, tokenpocket, safepal wallet, among others. the choice is yours.

Step4: Click on the menu sign on top left and when it opens, click on pools.

Step5: Now the pool is open. At this point it is assumed that you have earlier bought your BEP20 CAKE token from pancakeswap exchange or Binance and the token is already on your wallet. you will also need at least $1 BNB BEP20 token for gas fee.

Having done that, choose a pool to stake your Cake. Here I choose autocake pool.

Click on enable and when enabled, click on stake, then confirm.

Now your cake is staked and will be mining cake for you.

Earning on The Pool
The APY here is 101.21% and my 10 cake mines 0.05 cake per day. By calculation, in a year that is 365 days, I will earn 0.05X365=18.25 CAKE tokens. At the current rate of cake price of $14.820/cake, my earning for one year on the pool will be 18.25X14.820=$270.465.

The higher the capital, the higher the earning.

Three Assets and Technical Analysis
Here I choose BTC, ETH and BNB.

7-Day Analysis of BTC
From the graph below, there is an uptrend as the price moves up due to a buying pressure at point A. The trend is halted by a support, thus forming a point for the uptrend line to rest on.

The support at point A was not strong as the price increased more until there was a sharp selling pressure at point B. Between points A and B, the trend was continuous, until a few selling pressure and buying pressure before a total price reversal at point B. The downtrend at point D shows a continuous selling pressure as the price went down. Between points B and D, the chart showed a double top pattern.

30-day BTC Technical Analysis
At point A there is a continuous buying pressure, leading to an uptrend on the chart. This is halted at point B where there is price reversal, leading to a downtrend.

The continuous trend only happens at point A.

7-BNB Technical Analysis
Between points A and B there is a continuous uptrend, with two supports at point A. A price reversal at point B leads to a downtrend caused by a selling pressure.

30-Day BNB Technical Analysis
Here, the market have a buying pressure leading to an uptrend at point A and a serious selling pressure took the market to a downtrend at point B.

7-Day ETH Technical Analysis
Here there are uptrends on points A, B and C.

The chart experiences a continuous trend. This pattern of continuous trend is called Flag chart pattern. The flag is seen between the two parallel lines between points B and C.

30-Day Technical Analysis of ETH

At point B, there is a buying pressure, leading to an uptrend. This is stopped at point A by a selling pressure which caused a downtrend. The chart formed a single head.

Difference Between a Bearish Season and Bullish Season in Crypto Market

The bearish season is a time of continuous downtrend with subsequent resistances. This is a time when people sell their assets due to factors like negative news about crypto, among other factors. The bearish season is time holders of an asset are scared of losing all, thus they sell to stay out of the market. For example, the market has been bearish in the past months. Simply put, bearish means down. It is a period of downtrend.

Conversely, bullish means up. The bullish season is a period of continuous uptrend. This is seen in the chart as buying pressure keeps the price of the asset up. During this period, the chart shows a continuous uptrend with periodic supports on it.

Mostly, bullish season is caused by buying pressure when the news is good, while bearish season is caused by selling pressure when the news is bad.

Image

Conclusion

Staking is one of the easiest way to accumulate passive income, especially for people that don’t have much experience on trading. Though staking needs capital, anyone can still start small.

Technical analysis is a sure way to ascertain the behaviour of the market in future. Traders use the tools here to make trading decisions, though they are not 100% reliable in price forecast. The crypto market is a risky place to be and the higher the risk, the higher the profits or loss. It is advised that we do our due diligence before going into the crypto market.

Thank you for reading.

Reference

Cc:
@imagen
@steemcurator02
@steemitblog