Steemit Crypto Academy Season 3-Week 5 | Homework Post for Professor @imagen : Market Patterns and Blockchain Projects.
Make an investment. Show screenshots of the process. Why did you choose this cryptocurrency? What is it Market Capitalization? What is it position in the cryptoasset rankings? What is the objective of the project behind this coin? Who founded this coin? Show the roadmap. What is the specific purpose of the cryptocurrency?
Buying Cardano on Binance
• Launch the Binance app
• Tap on Wallet to see my available cyrptoassets
• Use the search button to find the cryptocurrency I want to buy, in this case ADA (Cardano).
• Having entered the Trade sect, I select the cryptocurrency I want to use to pay for the purchase of ADA. Here, I choose ADA/USDT because I have some USDT.
• Enter the amount of USDT I want to exchange for ADA and tap BUY ADA to confirm order.
• After successful trade, the value of Cardano I bought appears in the wallet.
The Cardano project is one I strongly believe in and it's native token ADA is one with prospsects to do very well in the future. Below are what prompted my investment decision into this cryptocurrency.
Charles Hoskinson, co-founder of Ethereum which is now one of the leading platforms for decentralized finance developed this project in 2015. This tells you how strong the team of developers behind this project is.
Cardano is also a decentralized blockchain platform characterized by scalability and fast transactions.
It also uses the Proof of stake protocol and not Proof of Work as seen in projects like Bitcoin. Thus, the use of less energy as compared to Bitcoin and the others hence, protecting the environment.
The purpose and goals of this project also interests me. With a purpose of building a secured and transparent society where power is shared among individuals is a very positive sign and one of the reasons I chose to invest here. Owners of this cryptocurrency are giving voting rights on proposals made to change things in the system.
Cardano is ranked #5 on Coinmarketcap and $1.28 as at the time of doing this work.
At the time of doing this work, the market capitalization of Cardano was $57,669,688,562.89.
Below is a screenshot from Coinmarketcap.
At the time of doing this work, ranked #5 on Coinnarketcap. Below is a screenshot from Coinmarketcap.
The objective of the Cardano project is pretty simple. It seeks to address already existing issues like interoperability, scalability and creating a stable cryptocurrency ecosystem. For instance, with regards to scalability, Cardano uses Ouroboros-an algorithm that rides on the Proof of stake protocol that uses less energy and makes transactions faster.
As said earlier on, Cardano was founded by Charles Hoskinson very popular man in the crypto world because of his works as the co-founder of crypto giant Ethereum .
The Cardano project's road map is in 5 eras.
The first is the Byron era which started in September 2017 when the project was launched. This was the start so it was more or less like building a foundation for a lasting project.
The second stage is the Shelley stage which was focused on building a decentralized community. Decentralization has veen a gradual process. Rewards and incentives also started in this era to encourage staking and adoption of the crypto.
The third stage is the Goguen stage, an integration of smart contracts in improving the capabilities of Cardano platform. Users will be able to create smart contracts with ease and efforts will be made to make the platform widely accessible.
The fourth stage is the Basho era where foucus and attention will be tend to improving scalability and achieving th interoperability goal on the network. Side chains will also be developed and linked with the Cardano chains. Cardano will then develop immensely and become one of the high performing blockchain platforms.
The fifth and final era is the Voltaire era. Here final works will be done to make Cardano sustainable network. The system will be fully decentralized and well functioning and power redistributed to users.
The purpose of the Cardano network is to build a sustainable future where there is transparency, high security, fairness and power not held in a single authority but rather decentralized to the masses.
Explain in your own words what the "Evening Star" pattern consists of. What is its hit rate?
This is the direct opposite of the Morning star candlestick pattern. It is a pattern of 3 candlesticks associated with a downtrend. These 3 candles show how the market enters a bearish trend or downtrend after an uptrend.
The first candlestick is a strong bullish candlestick. This is where the price of the asset is up because there are more buyers of the asset in the market.
The second candlestick is a weak bearish candlestick and this is where buyers almost equal sellers in the market indicating a possible downtrend.
The third candlestick is a strong bearish candle where the price of the asset begins to fall usually because sellers are selling off the asset or excess supply of the asset in the market and is an indication of the start of a downtrend.
Below is an example of the Evening candlestick
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According to Computer scientist and stock expert Thomas Bulkowski, the hit rate of the evening star candlestick pattern is 72%.
Explain in your own words what the pattern "Abandoned Baby" consists of. What is the percentage correct?
The abandoned baby candlestick can either a bullish one or a bearish one.
The Bullish abandoned baby candlestick when formed signals the end of a downtrend and the start of an uptrend. It is a 3 candlestick pattern and similar to the morning star candlestick but with a slight difference.
The first candlestick is a bearish candlestick.
The second is a doji candlestick that falls below the first candlestick.
The last candlestick is a strong bullish candlestick that is high above the second candlestick which indicates the start of a possible uptrend. The hit rate of the bullish abandoned baby candlestick pattern according to Thomas Bulkowski is 70%.
~2.png)
The Bearish abandoned baby candlestick is the exact opposite of the bulllish abandoned baby candlestick. This pattern is normally formed at the bottom of the chart and indicates the possible start of a downtrend. It is a 3 candlestick pattern and similar to the evening star candlestick but with a slight difference.
The first candlestick is a strong bulkish candlestick. The second is a doji candlestick with some gap from the first candlestick.
The third is a strong bearish candlestick gapped from the doji candlestick indicating the start of a possible downtrend. The hit rate of the bearish abandoned baby candlestick pattern according to Thomas Bulkowski is 69%.
~2.png)
Perform analysis for 3 and 7 recent calendar days for Bitcoin Do you identify any patterns? Show screenshots
Analysis of Bitcoin chart for 3 calendar days
Bitcoin has been doing well recently. From the chart (BTC/USD), we see a steady rise in the price of the asset. However, the price also falls but it quickly bounces back to start an uptrend.
Some identifiable patterns in this chart are the
• Morning star candlestick pattern: On the 26th, after a short downtrend we see a doji candlestick in the middle of the pattern indicating almost equal number of buyers and sellers of the asset and then followed by a bullish candlestick starting an uptrend.
• Three white soldiers: This is a trend reversal pattern indicating the end of an uptrend. In the chart there was a downtrend not long after this pattern formed.
Analysis of Bitcoin chart for 7 calendar days
In a BTC/USD chart for 7 calendar days, it was hard to find or identify patterns form. I identified an evening star pattern form after carefully looking out for details in the chart where an uptrend reversed to a downtrend after the pattern formed.
Another pattern I identified was the morning star pattern. Where a downtrend reversed to an uptrend.
Conclusion
One of the things to consider when investing in a cryptoasset is to investigate the project and find the purpose and goals for the project as part of fundamental analysis before investment. Doing this makes the trader informed of the project and helps in investment decision making.
Aside fundamental analysis, market charts when studied and understood can help traders make good investment decisions.
Thanks for reading. Credits to @imagen for this lecture.
Gracias por participar en la Tercera Temporada de la Steemit Crypto Academy.
Te felicito, realizastes un buen trabajo.
Continua esforzandote y espero seguir corrigiendo tus asignaciones.