Steemit Crypto Academy | Season3: Week5 || Death cross & Golden cross, How to use Binance P2P trade

Thank you @yousafharoonkhan professor for this homework task. My entry is below

Home work task

Define Death cross and Golden cross in your own words, their significance in trade and their effect on the market.

Explain the points below
• How many days moving average is taken to see Death cross and Golden cross in market for better result and why?
• How to see Death and Golden cross on the chart
• Explain Death cross and Golden cross on the chart(screenshots needed)

What is Binance P2P and how to use it

How to transfer cryptocurrency to P2P wallet

How to sell cryptocurrency in your local currency via P2P(any coin and country)(screenshots needed)

What are the things to keep in mind during P2P trade and describe its four advantages and disadvantages.

Define Death cross and Golden Cross in your own words, state their significance, and give the effects they have on the market

Death cross

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This is a technical chart pattern indicator showing the potential for a major sell off. It is mainly an indicator of what has already happened but isn’t an accurate signal for bearish movements ahaead. It always appears on a chart when an asset’s short term moving average crosses below its long term.

It is claimed to be a reliable predictor of some severe bear markets of the past century. Death cross is a long term indicator so some investors usually pull out of the stock market at the start of the bear markets to avoid huge losses. It majorly works well for investors who have plans of locking their gains for a long time before the next bear market starts.

Golden cross

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This is a pattern showing a bullish signal on a chart whereby the short term moving average crosses above a long term moving average. It is an indicator for potential of a major rally. It is a bullish break out pattern that forms from a cross over involving an asset’s short term moving average.

Significance
• Both the Death cross and the Golden cross help traders when indicating market momentum.

• Traders use Dc and Gc to single out appealing entry and exit points. For example the Golden cross can be useful to know when it is wise to sell and when to hold onto the assets.

• Traders can use the Dc and Gc to point out low price entry points.

Effects
• The Dc and Gc are believed to be lagging indicators because they reveal the market momentum after price movements have already taken place

• The momentum Dc and Gc shows can be temporary at times hence changing direction of the market from time to time.

Explain the points below

How many days moving average is taken to see Death cross and Golden cross in the market for better results and why

Death cross comes up when an asset’s short term moving average crosses from above and goes below its long term moving average. For example it is usually the 50 day crossing to below the 200 day.

The Golden cross comes up when an asset’s short term moving average crosses above its long term moving average. For example the 50 day moving average crossing above its 200 day moving average.
The reason for the Dc and Gc having moving averages is because they have three different phases.

How to see Death cross and Golden Cross on a chart

The Dc and Gc are seen on a chart when you use trading view websites. They are shown on the charts as market indicators.

• You need to browse trading view
• Click on chart so as to see the indicators
• Select any crypto currency that you want to use and see the Dc and Gc on your chart
• Go to settings of the indicators on your chart and set the short term to 50 days moving average and the long term to 200 days moving average .

**Explain the Death cross and Golden cross on the chart(screenshots needed)

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According to the chart, there is a black line and a blue line. The blue line is the short term moving average that crosses above the long term moving average. In this case this line is termed as the Golden cross. And on the same chart, is the Death cross which is seen when the short term moving average crosses below the long term moving average.

What is Binance P2P and how to use it

P2P is the act of buying and selling crypto currencies directly amongst users without involving a third party. It involves you having more control over who buys your crypto currency and who sells to you according to the settlement time.

Binance P2P is important in protecting both the buyers and sellers in safeguarding transactions to reduce risks of fraud.

Binance P2P helps to secure crypto currencies in each one’s wallet until both the involved parties are free to release them to each other according to their agreement.

In order to use Binance P2P, you need to follow these steps;
• You need the Binance lite mode. You can see it when you click the icon of your account at the top in the left corner.

• Select on the trade button. It is at the bottom

• Select buy and then choose one crypto currency you would prefer.

• Enter the amount of crypto you would want to buy

• Select fiat currency that you want to pay with. For example UGX

• Enter the amount of UGX you want to spend then buy the crypto

• Next, Select your preferred payment method from P2P trading . For example it can be by bank

• Transfer finds to finalize your buy order and you will see the seller’s agreement information

• When you are done with the confirmation, you will be able to find the crypto in your P2P wallet.

How to transfer crypto currency to P2P wallet
• You need to open the Binance app and login

• Tap on wallet and choose overview

• Click transfer

• Choose where the crypto is going and then type in its amount. For example where there is To:, put in P2P

• Then after confirmation of the transfer, you are good to go

How to sell crypto currency in your local currency via P2P(any coin or country)(screenshots needed)

• Open your Binance app and login. It is important to turn it to lite mode

• Tap on the trade button then click P2P and the market will open

• Choose one of the crypto you want to sell

• Select the fiat currency that you want to receive your money in. For example UGX

• Choose you favorable P2P trading method for example bank and confirm

• After this, your sell order is generated with a pending payment until you check your bank account and confirm the buyer ‘s funds.

• After receiving the buyers funds, you can then confirm and then Binance will release your crypto to the buyer.

What things to keep in mind during P2P trade. Give four advantages and disadvantages it has

When using P2P trade, you must keep in mind the following points;
• When you receive money, it is kept on your P2P wallet until you transfer it

• Make sure you know who you are sending money to so that you do not fall a victim of scam tricks

• Always make sure to enable additional security to your P2P by safeguarding your personal information on Binance

Advantages
• It involves selling and buying of crypto between two people. This makes the process easier and faster because there is no third party interference.

• P2P trading gives access to a worldwide market of crypto currency buyers and sellers. You can Ben able to buy and see like crypto from various people across the globe in a few minutes.

• It increases freedom of funds by simplifying access to crypto currency payments for ordinary people across the world.

• It has a number of fiat currencies that it supports in various countries so it helps people in different countries trade

Disadvantages
• It has a limited liquidity which affects crypto prices on the platform

• It is associated with a number of scammers who can lure you to pay them in many ways for example by sending them your crypto.

• When using P2P lending, there are career risks because the loans are exposed

In Conclusion, the Death cross and Golden cross are indicators that can be used as signals to know the bullish and bear trend market situations. You can as well trade on Binance by using the P2P wallet because of it’s simplicity and no interference from third parties.