Steemit Crypto Academy | Season 3: Week 5 || Death cross & Golden cross, How to use Binance P2P trade by @marianaceleste
✍Task of the week✍
A cordial greeting to all the SteemitCryptoAcademy community, I am very happy to be again acquiring all the knowledge for my personal growth, but this time from the hand of the teacher @yousafharoonkhan whom I thank for his excellent way of explaining this class.
Define Death Cross and Golden Cross in your own words. And what is the importance of DC and GC in trading? And what effect do these two have on the market? (In your own words).
As we have been studying technical analysis is a valuable tool when it comes to cryptocurrency trading, as it helps us to make decisions more aware of the possible changes of the currency and thus obtain more desired results.
The Death Cross and Golden Cross are patterns used by traders and investors to perform technical analysis.
Before continuing to define it is important to clarify a definition that is immersed in these patterns which are the moving average (MA), this is nothing more than a line that is represented on a price chart, which indicates the average price of a cryptoasset in a given period of time. For example, a 30-day moving average plotted on the STEEM price chart will indicate the average price of this cryptocurrency over the last 30 days.
.png)
That said, we can continue with the clarification of definitions.
Golden Cross
.png)
This pattern consists of a plotted line indicating the average price of an asset (moving average) in the short term, which crosses above a long-term moving average. These lines can be set at any time interval, however the short term line is usually considered to be a 50 day interval, while the long term line is considered to be a 200 day interval.
This pattern is associated with an uptrend, because if the short-term average price line crosses the long-term price line upwards, this indicates a possible change in the direction of the trend to the upside.
The Golden Cross is characterized by developing in three phases or parts, which are:
- The short-term moving average is below the long-term moving average, in a downtrend.
- The short term moving average crosses the long term moving average reflecting a reversal in the price of the asset.
- The bearish moving average stays above the bullish moving average, ultimately reflecting an uptrend.
Death Cross
This pattern is associated with a downtrend, as the opposite of the golden cross occurs. When a short-term moving average is below a long-term moving average, it indicates that the price action is downward.
.png)
The Death Cross is characterized by developing in three phases or parts, which are:
- The short-term moving average is above a long-term moving average, reflecting an uptrend.
- The short-term moving average crosses downward with the long-term moving average, signifying a trend reversal.
- The short-term moving average stays below the long-term moving average, establishing the downtrend.
And what is the importance of DC and GC in trading?
These patterns are of importance in technical analysis as they allow to corroborate the revision of a trend. In addition to this, it allows to consider potential areas of support and resistance, because when a Golden cross occurs, the long term moving average can be considered as an area of support, while when we are facing a death cross it is considered a potential area of resistance.
These allow traders to develop a more solid and reliable confluence (trading strategy).
And what effect do these two have on the market?
Both patterns do not have a major effect on the market as such, the reason is because they are lagging indicators, they generate a signal of a trend that is already in progress. That is, as I mentioned before, they mainly help us to confirm the revision of a trend that has already passed. These are not leading or predictive indicators.
The CG and DC are generally used in long-term analysis.
Explain the points given below.
How many moving average days does it take to see the death cross and the golden cross in the market to get a better result and why?
I think I am getting ahead of myself on this question
The average days to get a best result from a short term moving average is 50 days while the days to get a long term moving average is 200 days. This is so because the signals at the longer time intervals are more reliable than that of the short time intervals.
How to see the death cross and the golden cross on the chart.
The first thing to do for both patterns is to insert the moving average indicators to the chart of the chosen cryptoasset.
.png)
Then proceed to set the time intervals for both plotted moving average lines, which would be 50 days (short term) and 200 days (long term) following the recommendations.
.png)
Following the phases or parts of each pattern, we proceed to the corresponding identification.
Golden Cross
.png)
Death Cross
.png)
Explain the death cross and the golden cross in the graphic (a screenshot is required).
Golden Cross
As can be seen, the short-term moving average (fuzzy line) is below the long-term moving average (blue line), until it reverses crossing above the long-term moving average, thus reflecting the Golden Cross, as it remains in that position indicating the bullish scenario for the cryptocurrency.
Death Cross
As can be seen, the short-term moving average (fuzzy line) is above the long-term moving average (blue line), until it reverses crossing below the long-term moving average, thus reflecting the Death Cross, as it remains in that position indicating the bearish scenario for the cryptocurrency.
What is Binance P2P and how to use it?
Binance is a great blessing, a valuable tool
.png)
It is a platform to buy and sell cryptocurrencies with money of your local currency. It has a large amount of local currencies (fiats) available and among them (incredibly) is the Venezuelan bolivar. It also has the most commercial cryptocurrencies: BTC, Ethereum, USDT (with which I save), BUSD, BNB, and DAI, which are the ones that can be transferred in this wallet. It also has a large number of cryptocurrencies but these are managed in the Spot wallet which are also redeemable for those previously described and manage in the P2P market.
Binance P2P (person to person) allows you to upload ads to buy and sell assets, with limits on amounts and with the banks in your area with which it works. In addition, it has a "filter" system in which you can filter according to the bank where you want the transfer to be made.
This is a very safe application, because when you start the transaction, the amount to be purchased is blocked until the transaction is successfully completed, that is, there is a kind of guarantee so that both parties feel secure about what they are executing. In case of any inconvenience, it can be taken to appeal and an agent will try to resolve the conflict.
The chances of a scam occurring are practically nil.
It does not charge transaction fees, which gives it a plus and makes it one of the best options to carry out your activities.
How to transfer cryptocurrencies to the p2p wallet?
The first thing to do is to register on the binance platform if you are not registered. If you are, proceed to log in with your email, password and in my case an authentication key.
Then we go to the wallet section.
.png)
I click on spot wallet, which is the market between cryptocurrencies.
.png)
Once in the wallet, I click on the "transfer" option, this displays a screen where I proceed to select the p2p option (1), I select the coin I want to transfer that is in existence in my spot wallet (2), then I enter the amount to transfer (3) and finally I click on the "confirm" option (4).
.png)
As I did not take a screenshot of the "transaction successful" message I went to the "deposit withdrawal history" option.
.png)
Where I enter from which wallet I made the transaction (1), and to which wallet I transferred (2), I select the option to search and I get the data of the transaction, that is to say that it was made.
.png)
How to sell cryptocurrencies in local currency via p2p (any country or currency) (screenshot needed to verify account)
I enter the "Trading " tab and then select the "p2p account " option.
.png)
Once in the p2p market we will select the option to sell (1), right next to it we can see the cryptocurrencies available to trade, in my case what I have available are USDT, so that is what I will select to sell (2).
At the bottom we can observe the local currencies available, as I am from Venezuela my local currency is the Bolivar (VES) (3).
Finally I select the bank I use, which in my case is Banesco (4).
.png)
Once selected all the ads are displayed with the available amounts and the limits of the transaction, then I select the one that fits the amount I want to sell.
.png)
Once I click on "sell" the following is displayed.
I wait patiently for the buyer to make the transaction, I will receive a notification to my email and my cell phone that the transfer has been made, likewise I enter my bank account to verify that the transaction is done.
.png)
Once verified, I release the USDT.
.png)
What are the things to keep in mind during P2P trading and describe its four advantages and disadvantages? (own words)
During P2P trading it is necessary to consider several elements such as:
The user's reputation, which is based on the number of successful transactions he/she has achieved, thus giving him/her more reliability.
Payment method, which can be filtered in the options to optimize the transaction time.
Transaction limits, which is set by the user making the advertisement. We must set one that meets our requirements.
Transaction terms, it is important to consider them when selecting the ad.
Be sure that you want to carry out the transaction because this way you do not waste the time of the user with whom you make the trade.
| All users confirm their information in order to give more confidence and security among users regarding transactions. | Honestly, I didn't get any disadvantages as despite being a relatively new platform (2019), it has a good number of transaction volume and subscribers. |
| Transactions are made in short periods of time. | |
| It has several payment methods according to your local currency. | |
| It is a very didactic platform. | |
| At the time of making the purchase transactions, it already provides the data to be transferred, thus shortening the waiting time. | |
| It has an app and web version for the convenience of users. | |
| It does not charge commissions for the purchase and sale of assets, or publication of ads. | |
| Customer service waiting time is 1-2 days. |
Transactions can be made with the use of QR
Conclusion
The Golden Cross and Death Cross are patterns that help the trader to verify the information of events that have already occurred or are occurring on the fly, these are not predictive but are very useful. The Golden Cross indicates an uptrend, while the Death Cross indicates a downtrend.
On the other hand, the binance platform allows us to make trading transactions between cryptocurrencies and with the local currency of the countries, this is very safe and reliable despite the time of creation. We have all the elements required in a single platform for trading, as it has more than 60 cryptocurrencies and several fiat currencies.
Translated with www.DeepL.com/Translator (free version)
All the content of this text is authored by @marianaceleste, with original stamp for the steemit platform.
The banner and images were edited with the canva application by @marianaceleste.
Link Twitter
Congratulations, your post has been upvoted by @scilwa, which is a curating account for @R2cornell's Discord Community. We can also be found on our hive community & peakd as well as on my Discord Server
Hi @marianaceleste
Thanks for participating in the Steemit Crypto Academy
Feedback
This is good work. Thanks for demonstrating such a great understanding of the GC, DC and Binance P2P trading.
Thank you so much professor 😊