Trading Competition (ZEC/USDT BUY | ISM 10x) - Crypto Academy / S6T3 - Homework post for pelon53.

_src

Today, I'm sharing with this community one of my trades which went against my hopes. It was a quick one, perhaps, one that taught me the importance of indepth research and analysis before going into a trade.

This trade was a 10x Isolated margin buy trade on the ZEC/USDT pair. It wasn't the best of memories but it's a valuable lesson learned nonetheless.

First, AN OVERVIEW OF ZCASH

ZCash is a decentralized cryptocurrency and it was created to specifically address the issues of privacy and anonymity. It employs the zk-SNARK zero-knowledge proof technology where nodes can validate a transaction and not disclose sensitive transaction data while doing that.

At this helps, it helps to remind or inform that normal blockchain transactions are not completely anonymous. While the passport of the transacting parties are not available on display, their public addresses are and with advancements in data science and blockchain forensics, transacting parties can be deanonymized.

This is where ZCash comes in handy. ZCash nodes of course sends transaction data to the public blockchain after successfully validating a block. However, the nodes do not by default release some sensitive data like the public addresses of the transacting parties and the amount involved in the transaction are masked.

These data can be released optionally if there's need to audit the blockchain or if there's a need for regulatory action.

FOUNDER

ZCash was founded by Zooko Wilcox-O'Hearn and although that kind of explains the Z in the coin's name, it doesn't do justice to the experience of this guy. Zooko is a pro when it comes to cyber and computer security and he has spent a quarter of a century contributing to the cryptography and information security industry.

Asides from ZCash, Zooko was also involved in DigiCash, which used to be an electronic money outfit, he was also a contributor to Mojo nation, a P2P software used for storing data. Some of his contributions also includes BLAKE3 cryptographic hash function and Least Authority File Store Filesystem.

In summary, for the past 25 years, this guy has been actively working to secure data while supporting Peer-to-Peer. He's currently the CEO of Electronic Coin Company, the for-profit outfit at the forefront of ZCash development.

I couldn't find a verified Twitter handle with the name but you can be half sure it's this guy 😌

_{Snapshot from Twitter}

TECHNICAL BACKGROUND OF THE PROJECT

ZCash is referred to as the better bitcoin. This is because the project offers absolute anonymity as an option. After a transaction has been validated, it is sent to the blockchain either masked or bare. This option to choose between publicity and privacy is a key feature of this project.

To do this, ZCash employs the use of zk-SNARK which is short for - zero knowledge Succinct
Non-interactive ARguments of Knowledge. With this technology, the fact that a transaction has taken place is recorded on blockchain but the details of the transaction are not. Thus a totally anonymous transaction can be recorded on the immutable blockchain.

WHERE TO BUY ZCASH

I bought mine on Binance, though it is also available on a host of other exchanges like Gemini, Coinbase, Okex, Gate.io, Kucoin, BitFinex, Kraken, Poloniex, ByBit, etc.

WHY I'M BULLISH ON THIS COIN

The brain behind this project has been an outstanding contributor to the world of decentralized and highly secured electronic digital cash. He's one of the great minds in crypto and he's creation of this project addresses a specific need in the crypto space.

This project has a very bright future in the sense that as crypto experiences more and more adoption, people would fancy the option of total anonymity on their transactions. The coin is offer for upto 10x leverage on Binance Margins and that tells you about the project.

TECHNICAL ANALYSIS

On the 4H chart, I saw price break above a major resistance level and retest that level twice, effectively turning it to support as it surge upwards. In it's upward surge, I noticed higher highs and lower lows. There was also this breakout at the later part of the price chart.

_{Screenshot taken from Tradingview}

I thought I could take advantage of a continued upward movement and entered a trade at the minor breakout at the top of the price movement.

It didn't quite go as planned and my Stoploss was hit a few minutes later.

_{Screenshot taken from Tradingview}

I entered the trade at $180.5 and exit at $177.5. I was not wrong with my analysis though, it's just that my stoploss was quite close and this was because I applied maximum leverage (10x).

After hitting my stoploss, price went on to make a high of $188. Annoying right? Yeah.

I should have paid more attention to my entry point or reduce the leverage to allow for a bigger stoploss. I also entered the trade at a 4H red candle which is a red flag as I didn't have a very concrete backing for my entry and exit setup.

Here is how price progressed after my stoploss

_{Screenshot taken from Tradingview}

PROOF OF TRADE

Below is the proof of my trade on Binance

_{Screenshot taken from Binance}

_{Screenshot taken from Binance}

I entered the trade with a total of ($325.4415 + $86.0985 = $411.54).

This was a 10x Isolated margin trade. My capital here is $41.54. I borrowed $370.

I exited the trade at $404.1675 which after returning the borrowed funds, I'm left with ($404.1675 - $370 = $34.1675) it was actually about $33.3 after fees. So it was a loss of $41.54 - $33.3 = $8.24.

Thanks for reading

Cc:
@pelon53

CoinmarketCap