Crypto Academy Week 11- Homework post for Professor @yohan2on

in SteemitCryptoAcademy3 years ago

Introduction

Building a Crypto Portfolio for me involves a lot of research, analysis, social media hype and sometimes some personal tweaking based on my own experience and even instincts.

But investing is first professional and so I follow first my fundamental analysis.
Fundamental analysis needs me inspecting the market capital of the coin, Number of coins in circulation and market value (Market Capital / Number of coins in circulation) to be able to properly evaluate the coin and its rooting in the crypto world.

Good day beautiful steemians, welcome to my week 11 homework for professor @yohan2on on Designing a Cryptocurrency Investment portfolio.

Fundamental Analysis:
Fundamental analysis gives a good pointer on great coins so and as it is said “it is better to invest small in great coins than invest big in small coins.” This is centered on the general positive sentiment given to these coins which automatically gives them a higher demand, pushing their price up.

Examples of great coins are:

CoinCoin Market Capital ratingMarket Capital $Number of Coins in CirculationMarket Value
Bitcoin (BTC)11,083,150,787,50618,696,025 BTC$57,934/BTC
Ethereum (ETH)2332,582,950,796115,694,483 ETH$2,874/ETH
Binance Coin (BNB)395,817,347,992153,432,897 BNB$624/BNB

So I always keep tabs on these coins as they are on my watchlist and I always invest in atleast one of them.

BTC has made a recent dip, so I buy 20% of my 50 dollars worth of BTC, total 11 dollars since I cant buy less than 10 dollars using USDT on Binance pic below:

Btc.JPG

Screenshot from www.Binance.com

Further down fundamental analysis, we see coins which show promise. These coins have a great project purpose and are already being rapidly accepted by the public. Examples are the:

CoinCoin Market Capital RatingMarket Capital $Number of Coins In CirculationMarket Value
Litecoin (LTC)1118,184,590,94466,752,415 LTC$272/LTC
Tron Coin (TRX)209,310,360,46271,659,657,369 TRX$0.12/TRX
Steem Coin (STEEM)167329,829,288373,515,225 STEEM$0.88/STEEM

Steem is a coin of the future, I cant even do without investing in it. Social media is the new way of life, and content is the new gold, Steem fuses social media and content creation in a coin where great content are voted for using the Steem coin. This makes Steem a coin of the future.
So I transfer 13 steem worth 11 dollars to my binance wallet.


steem buy 2.png

Screenshot from my Binance app

Technical Analysis:
I carry out a routine technical analysis on coins with the intention of cashing out of their uptrend. This which involves more risk but sometimes faster reward is entirely based on traders psychology.

So how do I carry out my technical analysis:

First I look for top gainers, coins whic have made a pump, as it seems more likely they will do same again in the next couple of days.
But I do not take the ones that have made very big gains, as they may first see some retracement, the idea being that from my experience with candle stick patterns on three white soldiers, the last soldier candle stick usually has the biggest move upwards. Pic below:

image.png

Picture from source

So I try to take between 10% and 5% gainers and look through their chart. Taking the Inch Coin, it has made about 9.95% gain, and a candle stick pattern showing a growing 3 white soldiers.

Inch usdt.png

Screenshot from www.Binance.com

inchbusd_LI.jpg

Screenshot from www.Binance.com

This is a good entry point, I pen down buying 10% worth of 1Inch to my Bianance wallet.
Secondly on using technical analysis, I now try to find coins who made a downfall, not all downfalls mean liquidations, some are dips. So I look for hammer patterns in these top losers, but for losers between 10% and 5%.

After thorough searching, I cant find any one that matches my search.
So I buy more Inch making it 20% of my 50% portfolio equal to 10 dollars worth of inch, pic below: (although I later again had to change it to 11 dollars because of the minimum USDT trade requirement).

inch.JPG

Screenshot from www.Binance.com

I then buy some Ehereum worth 11 dollars also and then converted my dust coins to BNB (Binance coin) worth 8 dollars.
Total I have 11 dollars worth of Bitcoin, 11 dollars worth of 1Inch coin, 11 dollars worth of Ehereum, 11 dollars worth of Steem coin, and my remaining money in USDT.

I keep more of my money in USDT as it is a stable coin, easing me from price fluctuations, but more making it very easy to purchase coins without having to start doing any bank transfers.

Total pic below:

wallet balance toda.JPG

Screenshot from my Binance wallet

..... 40 hours Later.....

After more than a day, I check my wallet and I am seeing some profit, so I have to do an analysis of how much profit each coin made and see if my predictions were right.

Total pic after 40 hours.

wallet balance today.JPG

Screenshot from my Binance wallet

Data collected from each coin.

CoinPrevious Dollar valueCurrent dollar value.Percentage Change
BTC10.9911.010.18 %
ETH10.9511.706.85%
BNB8.508.38-1.41%
STEEM11.9611.30-5.52%
1Inch11.1512.7914.71%
USDT26.5426.540.00%

Gainers:

1Inch: (14.71%):
Here I have seen that my Technical analysis has paid off, as I have gained from the uptrend of the 1Inch coin.Below are the previous and after price action.

inchbusd.JPG

Inkedinc second_LI.jpg

Screenshot from Binance.com

Ethereurm (32%):
The Ethereum coin has done more as a great coin, it is a father to so many coins, so it has great fundamental demand.

BTC (2%)
BTC Although a great coin is struggling through making little gains and has shown little increase.

Losers:

Steem (-12%)
The Steem coin although a great coin is currently going through some little down trend, so it made a negative growth over the couple of loses. although longterm we are expecting some consolidation and rebound.

BNB (-1.41%)
The BNB is a great coin, the native coin of the Binance exchange, but it did a little negatively over these couple of hours, this doesn't change the fact that it is a great coin though.

USDT (0.00%)
The USDT as a stable coin doesn't change in that is the idea behind its existence, to be a reference point to other coins.

Total Percentage change:
Making a 0.18 percentage change of BTC, which i bought with 20% of my portfolio, and 6.85 percentage change of ETH, which I bought with 20% of my portfolio, Steem making a -5.52 percentage change of 20% of my portfolio, Inch making 14.71 percent change with 20% of my portfolio. That is 16.22 percentage profit of 80% of my portfolio. then BNB making a -1.41% change with 14% percent of my portfolio. Total I made a 12.95% profit of my total portfolio USDT regardless.

Conclusion

Investing is great, and I hope I have been able to show how to make profits from my fundamental and technical analysis on the crypto market.
Thanks for professor @yohan2on for this opportunity.

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Hi @hadassah26
Thanks for participating in the Steemit Crypto Academy
Feedback

Reasons for your 6 selected CryptocurrenciesScreenshots/evidencePresentation of the results
3/33/32/4

This is good work. Well done with designing of Crypto investment portfolio. Congratulations on your 12.95% profit from your portfolio.

Homework task
8

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