Exchange Coins - SteemCryptoAcademy S5W1 - Homework Post for @imagen

This is my submission for the Assignment given by Professor @imagen. I am more into Futures trade so I would like to present one emerging Crypto Exchange ByBit.

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1.) Perform a complete analysis of the currency of some exchange. Not allowed: BNB, KuCoin, Cake, and Uniswap.

ByBit came into the market 2 years back and it is very popular for its Futures Trading. It has the lowest Fee such as 0.07% for the Market order and -0.02% for the Limit order which means you if you will put a limit order then instead of paying Fee you will get in return. You may have faced issues with the exchanges when the market is too volatile, especially in case of crash nothing is working like on Binance & KuCoin also very big Wicks just for Stoplos hunting. But on the Bybit you will not see such nonsense thing also it works very smooth. I just shited to ByBit from Binance for my Futures trading because a few months back I lost a huge amount of money due to their Price difference between Spot and Futures.

The native token of ByBit platform is BIT Dao Token which has several use cases that I will be telling you in the Fundamental Analysis.

Fundamental Analysis:

ByBit has a very strong and I personally believe in the future this will in the Top 3 Exchanges, Currently, Bybit has the highest liquidity for Futures trade also they have recently started Spot trading as well. Since the team is introducing so many new things the use case of BIT tokens is increasing,. BIT Dao is currently ranking at 213 as per the Market cap and it can easily be in Top 100 coins in near future.

Development of ByBit Platform-

a) Spot Trading: ByBit started Spot trading as well and you can use BIT tokens to pay the fee to get 50% discount on the Trading Fee.

b)BiFi: In this section ByBit allows users to generate passive income through Flexible Staking, Dual Asset Mining, Defi Mining & LaunchPool . This is not the end there are a lot of more amazing things to come for this platform and it can be a very good investment in the long run.

c) LaunhPad: ByBit offers launchPad as well where you can Hold BIT tokens to take part in the Token sell and so far they have launched 3 tokens which performed more than 30x at the time of the listing. The use case of Bit tokens keeps increasing.

Technical Analysis:

As you can see it was launched at $1.45 and so far it has just doubled the launching price. You can see other exchange tokens made at least 10x you can take the example of BNB, KCS, WRX etc. I believe this is going to be the best opportunity to grab BIT tokens between the 2.1-2.5 USD range. As the use case of the token will increase the price will skyrocket.

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2.) Make a purchase equal to at least US $ 10 of the currency you explained above. You must make some movement with that currency within the exchange that created that currency. Show screenshots and explain in detail the steps to follow. Example: transfer of funds, Staking, participation in a Launchpad, trading in futures, etc. Indicate the reasons why you chose that option (operation) on that platform.

Make a Purchase:

Well, I am already holding some BIT tokens still to represent I am buying 22 USD worth of Bit tokens more. In order to buy Bit tokens, you need to click on Spot Trading Option then enter the amount that you want to buy.

After buying currently, I have 179 BIT tokens, which I am holding for the Long Term. You can see my holdings and trade history.

Flexible Staking:

In the operations, the future trade is similar and pretty. I would like to show you how you can earn money while holding the BIT tokens for the long term also I will be using Flexible staking so that you can remove it whenever you want. Currently, the APY 22% and this is really good for the long-term investor to get some return. This amount can be used to take part in the Launchpad sale. I will be explaining you step by step method to do that.

Step:-1Clikc on Asset then click on ByFi Account section after that you need to Click on the Transfer option to Transfer your BIT tokens from Spot Account to ByFi Account.

Step:-2 After Clicking on Transfer you need to enter the amount which you want to stake or transfer from Spot to Byfi Account.

Step:-3 One you have transferred the amount in ByFi wallet, you need to Click on ByFi Center then LaunchPool. At the bottom, you will get the option of staking BIT tokens where you can get 22% APY.

Step:-4 Now Click on Stake Now and select the amount which you want to Stake. I will using my all BIT tokens to Stake.

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3.) Show the return on investment in time frames of 0, 24 and 48 hours from the moment you bought. Take screenshots where you can see the price of the asset and the date of capture.

In the Flexible staking section, can there is so many Contest or Pool running on where you can stake your coins and get a return. In the IMX Pool, you can see it is giving 50% return Yearly and it will run for 7 days. In the 7 days you can take entry in the IMX token staking and earn 50% APY. Once the Pool will be finished you won't be able to participate in the same.

There is so many pools giving different Returns. Let's make the calculation for IMX Staking where we are getting 50% APY- Let's make some calculations to find out the 24 hrs return.

Annual Return- 50%
Monthly Return - 4%
24 Hour Return- 0.133% Every 24 hours.

Suppose, If am going to stake 1000 IMX tokens then I will earn 1.33 IMX tokens every 24 hours.

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3) Has the asset's price acted independently or does its price strictly follow the correlation with Bitcoin?

The Price of an Asset is derived individually and unlike the Stocks market, BTC is not an index it's the biggest and father Currency. However, 90% of Crypto assets show a correlation with BTC because the market works on the Psycology so if the BTC is crashing so just because of Psychology people start selling their Alts coins. Also the total market cap of any particular asset is calculated in either BTC or USDT. Let me show you a recent example where we can see clearly that the Alts are going down badly with respect to BTC.

In the above picture, you can see most of the coins taking correction along with the BTC but there are a few which are still green. BTC is not an index whose value is derived based upon other coins however it has a great impact on overall market sentiment.

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4.) What are futures trading?

Future Trading is the type of Trading that allows Traders to make money even when the Market is going down. Normally what we have seen if you have bought any particular coin and if it goes up then we make money but in the Future trader is a bit different. In future trading you sell something on the top then buy back the same amount during this time whatever will be the difference is your profit. In Future trading we are not actually selling but we are doing in on the contract basis suppose I have Shorted Dot at 55 and it crashed to 40 so the difference is our profit that is 14$ per DOT. All the futures trading platforms provides Leverag to trade like 2x-150x depending upon currency.

We can predict the future based on Technical Analysia and the market sentiments. If person A thinks BTc is going down in the next few hours then he can make the contract to Sell it and the buy it back when the market crashes. Futures trading are very Risk so its always better to learn then start it.

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5.) What is the margin market?

Margin market is nothing it is also a type of trading where you can take some rented money from the exchanges to buy any particular Coin. Suppose there is a big upcoming news for Coin A and you want to buy a good amount of money but you do not have enough money so you can get some rent money from the Exchnages to buy that and you just need to pay some charges for this service.

Some exchanges like Binance provides this feature where you can get up to 3x Margin to buy some selected coins.

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6.) What happens to the cryptocurrencies of exchange when they suffer from a hack or it turns out to be a fraud? Present at least 2 real-life examples.

It depends what kind of Hack it is if the hack is on the Particular chain then all the currencies related to the Chain will be impacted like ERC20 tokens. I would like to share my own personal experience when the hack happened in Bilaxy Exchange and Poly Network.

Case:1 Bilaxy-

This is the most of Recent happened in the Crypot world and the hackers hacked the entire Exchange also stolen some money of it. Most of the ERC20 toekns got impacted from this hack. I am also holding NCT which is a ERC20 based tokena and my 50% of the amount is stolen although the Platform is now allowed to withdraw the tokens but sadly the Fee is higher than what I am holding right now. This is really sad to here, I have tokens worth of 200 usdt and now I need topay 250 usdt to withdraw my funds.

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Case:2 Poly Network-

This is another biggest hack happened in the space of crypto where hackers stolen 610 Milliion Dollar from the Poly Network. Well, Poly network is a Financial P2P platform which provides features like Swap, Defi and financial uses. The crazy thing aobu this hack the Hackers return the Stolen money this is something new that I heard that Hackers return the money. May be they wanted to showcase their power that it can be hacked, I am happy for the Platform owners that they got their money back also appreciate the intelligence of the Hackers who hacked Decentralized platform.

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Conclusion

All the analysis about the Exchange token is my own believe so please if you want to invest some then Research more about it and Futures trading is risky so Learn then thin of removing the First latter from "Learn". The assignment was pretty amazing and helped me to explore so many new things. Thank you Professor for brining this assignment.