Steem cryptoacademy:- season 2 week 6:- home work post for professor @pelon53:-

in SteemitCryptoAcademy3 years ago

Hey there everyone, this is @prakhar9675 this side. And this post is against the Home work given by professor @pelon53.

images (79).jpeg
Source

So let's try to answer all the questions:-

Explain the Penny cryptocurrencies in your own words. Advantages and disadvantags.

Cryptocurrency having a price lower than 1$ is called penny cryptocurrency.
Some people also argued that in this definition 1$ price is quite high as most of the cryptocurrency fits into this definition and this definition should be changed. But now still cryptocurrency having price lower than 1$ is called so.

When you open any exchange you will see a whole list of such penny cryptocurrency. Some of them you must heard about and some of them you must not have heard about.

Some popular penny cryptocurrency are doge coin, shiba INU, BTT, and there are many more others too.

Here I am sharing a screenshot showing more Penny cryptocurrency.
IMG_20210519_121118.jpg
Source

These are some most popular penny cryptocurrency on coin market cap.
Although the price is given into INR but when you convert these Into USD all of them are under 1 USD.

Advantages of penny cryptocurrency:-

  1. As penny cryptocurrency has very less price, so one need not to invest lot to buy coins.
    For example current BitTorrent cryptocurrency is having price around 0.3478 INR. So you will have to spend as low as 347 INR to buy 1000 coins.
    IMG_20210519_121510.jpg

  2. It allows investor to earn more. As whenever the price of these penny cryptocurrency will increase a small investment now will give you a very high return provided that you will have to hold it with patience.

  3. You can invest Into many penny cryptocurrency at a same time with not more funds.
    As many cryptocurrency like bitcoin, ethereum needs a huge investment to make enough profit because it's valuation is very high. One the other hand, Penny cryptocurrency having very less price so one can invest easily into them.

Disadvantages of penny cryptocurrency

  1. As these cryptocurrency have very less price so risk of fluctuation is quite high. And whenever market trends downward, a huge decline can be seen into its price.
    As recently whole market crashed when bitcoin's price fell. Then nearly all penny cryptocurrency's pricey decreased a lot.
    IMG_20210519_122808.jpg
    This is the price chart of dogecoin of 1 week. You can see that it's price has decreased sharply.

  2. There are a lot of penny cryptocurrency in the market but not all of them are good to invest. Many of them might be just a plan to scam people and make profit.
    And as these penny cryptocurrency are not famous, a lot of information is not available on internet regrading these.
    So it requires a lot of research to invest otherwise one may lose its investment

  3. Penny cryptocurrencies are not always beneficial. Most of time it's price doesn't increase much.

For you: What will be the best Penny to invest in in 2021? Explain and show evidence.

As we discussed before that not all penny cryptocurrency out there are good to invest. And it requires a high amount of research before investing into them.

Nor for me, best penny cryptocurrency to invest into is dogecoin. Doge coin meets with the definition of Penny cryptocurrency because it's price is still less than 1$. Let me make you understand why??

As professor @pelon53 discussed data that is very important to be considered before investing. Let's try to find out if my choice doge coin fits into it or not.

  1. Dogecoin is listed on many popular exchange such as binance. And thus this is reliable.

  2. As professor discussed that before investing we should see pumps and dumps of the penny. We should not invest into that cryptocurrency which is already near it's peak.
    Doge coin recently fell very hard. And thus this is not at its peak value. And this is good time to invest into.
    IMG_20210519_122808.jpg

  3. As per professor, a penny should have market capitalisation more than 20,000,000 USD and 24 hours trading volume more than 5,000,000 USD. And dogecoin fullfill both requirements as it's 6tg largest cryptocurrency in the world as market capitalisation and it's 24 hours trading volume is $7,026,867,356.85 that is quite high than prescribed by professor.
    IMG_20210519_124221.jpg

  4. A good investor should not invest into a penny cryptocurrency when it's price is high and its trading volume is low. Dogecoin fullfill all these requirements.
    IMG_20210519_124045.jpg
    As you can see, the price of this is not at its peak and trading volume is also stable.

Thus after considering all these points I can say dogecoin is a good penny cryptocurrency to invest into and in long term it will surely give you a very high return.

Do a Ripple (XRP) analysis. Show screenshots. Would you invest right now? Explain

Ripple is a network payment network and XRP is its native coin. All the transaction made on ripple is done using XRP. Though XRP is not Decentralized because most of XRP are holding by ripple. But XRP has been in partnership with many banks and financial institutions for transferring funds.
And as per coin market cap XRP is 7th largest cryptocurrency in terms of market capitalisation
IMG_20210519_135324.jpg

Let's do a analysis of XRP. And try to forecast it's price for next few days.

Here I am showing a candlestick chart of XRP where unit time is 4 hours. This means each candle is showing activities of 4 hours each.

IMG_20210519_125700.jpg

This is the candlestick chart. Here you can see that current price of XRP is near it's support price and it's still very far behind from its resistance.
This indicates that XRP has potential to increase as its very far behind from its resistance and as it's near support price thus it is a good time to enter into the market

And I am saying that market will Trend upward with so confidence because trading volume of XRP is decreasing as the price of XRP is decreasing this means people are not selling XRP as they used to. They are possibly holding it and are waiting for price to rise and this give it more potential to rise.

You might not see the difference between the trading volume as above graph of having unit time of 4 hours.
Now I am showing you candlestick chart having unit time of 1 week.

IMG_20210519_135825.jpg

Here you can see easily, in a week the trading volume of XRP is decreasing.

Along with this market capitalisation and 24 hours trading volume of XRP is pretty good for a investor to invest into.

IMG_20210519_141005.jpg
Source

Thus according to me price of XRP will increase in a few day as it's very far from its resistance and its a good time to enter into market as the price of XRP is near it's support price

Whenever market will uptrend, XRP will roar again...

Present in detail a possible investment of 5 penny crypto assets. Explain and present data confirming your choice.

To investment into 5 penny cryptocurrency, I will go for BITTORRENT, DENT, DOGECOIN, SHIBA INU, STELLAR

As we already have discussed that we always should invest into penny cryptocurrency for a long term. Because in a short period of time not all Penny gives you high return.

But yet I will try to investigate the price change of these 5 penny cryptocurrency in a period of nearly 48 hours.

So In this section I will discuss about market cap and 24 hours trading volume of all of these penny cryptocurrency and also it's price change in 48 hours.

  1. Stellar coin:- stellar coin is currently having 16th rank on coin market cap and it's 24 hours trading volume is $2,264,201,031.79 and 24 hours low and high is $0.4684 /$0.5342 and it's market dominance is 0.62% which is nothing as compared to bitcoin or ethereum but it's a good percentage of market dominance.
    .
    The reason I chose this because in 2021 it performed amazing but still it was behind its 2018 mark. And I am hoping it will cross it's 2018 mark in upcoming time.
    IMG_20210521_115341.jpg

  2. Dent is currently having rank 126 on coin market cap. And its 24 hours trading volume is $65,159,050.10 which is quite good as a penny cryptocurrency. Its 24 hours low and high is $0.0041 /$0.004775 and its market dominance is 0.02% which is neither low nor very high.
    The reason I opted for this as I have seen potential into this coin and in 2018 this almost touched 0.1$ mark and it will again cross this mark.
    IMG_20210521_115711.jpg

  3. Dogecoin:- it is one of the most popular altcoins of 2021. First Elon Musk praised it and commend this project and it's price touched sky. But again, it's price is low and it's time to invest into this as I think it will again touch its highest value as Elon has announced that it's mission will be funded through this.
    .
    It is currently having 7th rank on coin market cap. nd it's Trading volume is $10,208,438,856.88 which is amazing. Its 24 hours low high is $0.3497/$0.4332. And its market dominance is 2.91% which is just amazing.
    IMG_20210521_120724.jpg

  4. BitTorrent:- it's having 46th rank on coin market cap currently and it's Trading volume is $740,422,271.75 and 24 hours low high is $0.003962 /$0.004839. And its market dominance is 0.17%..
    .
    I chose this as it has performed quite good. And I hope it wol continue this trend over the year and in future.
    IMG_20210521_121245.jpg

  5. Shiba INU:- On my list last name is Shiba INU. Dogecoin is a meme coin that was made on a dog. And another person made a cryptocurrency on that dog by his name that is shiba INU.
    .
    The reason I picked this is hope. As dogecoin has performed better than any other coin so I hope it also will.
    Its trading volume is $2,061,500,297.83 and it's 24 hours low high is $0.00000938 /$0.00001212 and it's market dominance is 0.22% which is good.

price change into 48 hours period.

Doge coin price change:-

IMG_20210521_112258.jpg
price today

IMG_20210519_141451.jpg
price 48 hours ago

Stellar:-

IMG_20210521_112137.jpg
price today

IMG_20210519_141641.jpg
this is the price 48 hours ago

Dent:-

IMG_20210521_112241.jpg
price today

IMG_20210519_141522.jpg
this is the price 48 hours ago

Shiba INU:-

IMG_20210521_112202.jpg
price today

IMG_20210519_141538.jpg
this is the price 48 hours ago

BitTorrent:-

IMG_20210521_112241.jpg
price today

IMG_20210519_141507.jpg
this is the price 48 hours ago

As you can see, I am In loss in every penny cryptocurrency I recommended. But still I will take this stand as I have told you that not penny cryptocurrency gives high return in no time. We should have patience.

Show an investment (starting at $ 5) that you have made this week in Penny cryptocurrencies. List the steps you took.

To invest into a penny cryptocurrency, I will opt for dogecoin to invest into.

To invest into dogecoin, follow the following steps:-

First of all, I have a little bitcoin into my account, so to make a investment of 5 USD, first I have to convert my steem into bitcoin:-

  1. Open binance app and click on market and search bsteem to convert my steem into bitcoin
    IMG_20210521_124325.jpg

  2. After this, you will see two options, convert your steem for bitcoin or ethereum. As I want bitcoin for steem, I clicked on that.
    IMG_20210521_124337.jpg

  3. Now as I have to sell my steem, I clicked on sell.
    IMG_20210521_124355.jpg

  4. Now all that balance of bitcoin will be added into your account.

Now to buy dogecoin follow the following steps:+

  1. Click on market and search for dogecoin and search for doge/btc pair. As I have BTC to sell.
    IMG_20210521_124507.jpg

  2. Now after that, click on buy dogecoin as I wanted to buy that.
    IMG_20210521_124518.jpg

  3. Enter the amount for which I want to buy dogecoin or enter the amount of bitcoin you want to sell. And click on buy dogecoin
    IMG_20210521_124719.jpg
    Here I am buying only 25 doge coin. As I have already bought dogecoin in a enough quantity

And all those dogecoin will be added to your balance.

Here in my balance you can see I have already bought dogecoin and these 25 dogecoin are added into my balance.
IMG_20210521_130350.jpg
This is my balance photo.

conclusion

So as you can see that penny cryptocurrency is a very good asset to invest into provided that you have researched well and invested into a right asset and you are investing for a long term with those money you are willing to lose.

So that is all from my side. Hope I am understood.

Cc
@pelon53
@imagen

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Gracias por participar en Steemit Crypto Academy:

Buen trabajo. Faltaron algunos gráfico sin su usuario. Puede mejorar la presentación arreglando títulos y justificando el texto.

Espero seguir leyendo tus publicaciones.

Escala de Estimación.Puntaje.Observación
Explicar Criptomonedas Penny.1.0Buena explicación.
Mejor Criptomoneda Penny para invertir en el 2021.1.0Bien, eligio su criptomoneda para este 2021.
Análisis de XRP (usted invertiría).0.8Analizó a Ripple (XRP) y dio sus conclusiones
5 Criptoactivo Penny a elegir/inversión.1.5Eligió 5 criptoactivos y habló de ellos, pero faltaron datos y un poco su análisis fundamental, para que sirven cada moneda.
Muestre una Inversión de Penny/pasos.2.0Bien explicado
Originalidad1.3Su propio trabajo.
Presentación/cumplimiento de reglas.0.5Puede mejorar arreglando los títulos y justificando el texto. Faltaron algunas gráficas y captures sin su usuario

Calificación: 8.1

Thank you professor, for your review.

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