Steemit Crypto Academy | Season 3: Week 5 || Death cross & Golden cross, How to use Binance P2P trade.

My special shout out to an awesome professor who took out time to explicitly explain in details every single step to make it easier to relate with. Thank you for your intentionality to make everyone learn and grow @yousafharoonkhan.

This is in response to the assignment given:

Homework week-1 :

Question no 1:

Define Death Cross and Golden Cross in your own words. And what is the significance of DC and GC in trade? And what effect do these two have on the market?(in your own words.)

In my own words, Death Cross and Golden Cross are exact opposite to each other. Death Cross talks about or indicates a long term bear market while Golden Cross talks about or also indicates a long term bull market. A bull market is when the market is on a rise and a bear market is when the market is on a low.

So, Golden Cross means the short term average is moving faster than the long term average. It keeps going at this pace until they cross. Death Cross on the other hand means going in the opposite direction of the Golden Cross - the short term average is going down faster to cross over the long term average.

The significance of both in trade is that for the Golden Cross, it shows the market has its support level while for the death Cross, there is a resistance level but what both crosses signify is that there is a change in trend already.

Question no 2:

Explain the points given below.

A. How many days moving average is taken to see Death cross and Golden cross in market for better result and why?

For better results, it takes 50 days to 200 days and this is because it represents specific time increase - the more time it takes the more stronger and lasting the breakout would be. Day traders tend to set 5 to 15 days period for the Moving Average and some adjust it between a minute to weeks and also months but to get stronger and lasting signals, 50 to 200 period is advised.

B. How to see death cross and golden cross on the chart.

For the Golden Cross, we can see the green line which is short term Moving Average line crossing the long term Moving Average line and then pass over it while for the Death Cross, we can see the red line going down against the set line.

C. Explain Death cross and Golden cross on the chart, (screenshot necessary)

In this chart, the Golden Cross is represented with an upward trend of the line crossing over and shooting past the red line.

In this chart, the Death Cross can be seen as the red line moved downward.

Question no 3:

A. What is Binance P2P and how to use it?

Binance Peer 2 Peer is a feature on Binance that allows users to buy and sell any cryptocurrency of their choice in their local currency.

It is easier to use and I would be explaining with the help of a screenshot:

Log in to your account, click on "Wallet", right above, you will see the P2P, simply click on it and you can select what you would like to do: 'Buy' 'Sell' or 'Transfer' into your P2P Wallet.

B. How to transfer cryptocurrency to p2p wallet?

It's another easy process as you log into your account, go to your "Wallet" and select the "Overview" (which is usually the default state you will find it), then select "Transfer". There you will see from the screenshot shared below how you can transfer from your "Spot Wallet" to your "P2P Wallet". Simply select the coin you want to transfer and the amount. After doing these, click on the "Transfer" bottom below.

C. How to sell cryptocurrency in local currency via p2p (any country or coin)(screen shot neccessary to verify account)

I make use of Bundle App more when selling my tokens and converting them to my local currency. And below in the screenshot shared are the process on how to go about it:

I log in to my account and I select the "Withdraw" option. I select the "P2P" option while inserting my account details. I go ahead to input the amount I am trying to withdraw and click on "Continue". I proceed to select from which coin my withdrawal would be made from and I confirm my payment after payment has been received. Bundle app has a list of designated agents which makes it easier to be selected. I confirm the payment received first before I initiate and confirm my transaction. They usually confirm my orders before the time elapsed.

Question no 4:

A. What are the things to keep in mind during P2P trade and describe its four advantages and disadvantages.(own words)

The first thing to keep in mind when using P2P to trade is to confirm the payment first before initiating the transfer of your asset. If you can't confirm the transaction, you must not send your token.

Advantages:

1. There is no restriction to entry or initiation. There is no paper works or any set of rules before you can initiate a trade.
2. There is no external control and the buyer can set the terms of his trade.
3. The trader manages his or her own transactions and it is cost effective.
4. There is privacy between the buyer and the seller. I can choose to sell an asset without anyone knowing about it.

Disadvantages:

1. The risk is high as many people have been defrauded after initiating a transfer without adequately confirming their payments.
2. Transactions can slow down because it needs a confirmation from both parties, so a party can delay a transaction deliberately or not pending a confirmation from his or her end.
3. Problem with low liquidity can also be an issue which isn't the issue with the traditional buying and selling.
4. A buyer or seller can change his or her mind mid way through the transaction and it would be cancelled and there is no face to who you are dealing with in the real sense of it as it is not a face to face transaction.

Thank you for your time.