Steemit Crypto Academy – Season 3 - Week 5 || Death cross & Golden cross, How to use Binance P2P trade: Post for @yousafharoonkhan

Introduction

It is week 5 of Season 3 in the Steemit Crypto Academy. This is a about the homework task of Professor @yousafharoonkhan on the lecture ‘‘Death cross & Golden cross, How to use Binance P2P trade’’.
The lecture was a great one and I am happy I participated in it.

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.)

Death Cross (DC)

A death cross is a pattern that occurs in technical analysis charts. It is an indicator that shows when a short-term moving average bisect below a long-term moving average. The short-term is usually (10,20,50 etc.) days while the long-term is usually (100, 150 200 etc.) days.

SIGNIFICANCE OF DC

The importance of the Death Cross should not overemphasize because it is a bear movement that leads to massive sell off of a stock.

Death Cross has been proven from the past to be reliable in terms of predicting the bear market of stocks.

Death Cross helps in signaling crypto traders of a major bearish trend in the market.

It could also be regarded as an exit point signal to traders in the stock market.

DC help investors to minimize their losses in the stock market and it also opens up an opportunity for investors that wants to go into the stock market an opportunity to buy.

EFFECT OF DC ON THE MARKET

DC signals a bearish movement of a stock which is not a good one for investors, and this leads to investors selling off their stocks which results to a falling price of a stock.

Golden Cross (GC)

The Golden Cross indicates a bullish signal in a chart, it occurs when when a short-term moving average bisect above a long-term moving average

SIGNIFICANCE OF GC

Golden Cross indicates bullish trends in a market thereby helping traders to forecast large bullish markets.

GC gives buy signals to traders who wants to go into a market.

GC plays an important role in increasing price of a stock as more traders tends to buy.

EFFECT OF GC ON THE MARKET

Golden Cross renders an asset in the market bullish thereby increasing the price of the asset.

Question no 2:
Explain the points given 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 cross and golden cross on the chart.
• Explain Death cross and Golden cross on the chart, (screenshot necessary)

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

The Death and Golden cross moving averages help traders identify price trend of a market.

To see a Death cross and a Golden cross better in a market two moving averages are considered, the short-term and long-term average.
For the short-term average the moving lengths includes; 20,30,50 etc days while for the long-term average the moving length is 100, 150 200 etc days.

Different traders have their different choices when it comes to selecting of a moving average to use. Some uses the 20 short-term and 100 long-term moving average, some uses the 30 short-term and 150 long-term moving average while others uses the 50 short-term and 200 long-term moving average. The mostly used moving average by traders is the 50 short-term and 200 long-term moving average

In using moving average different time frames are applied. Lower time frames such as 5m, 10m, 15m, 30m etc are used by daily while higher time frames such as 4h, 6h, 12h, 1D, etc are used by swing traders.

Moving average through different time frames assist traders in focussing and identifying of price trend of a market.

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

In order to see the death cross and the golden cross on a chart, two moving should be added to the chart.
Below is the steps I took to see the death and golden cross

• Firstly, I visited the trading view website and the I clicked on chart

• I clicked on indicator and different indicators opened.

• I searched for moving average and selected it.

• I went ahead to choose the number of MA I want to use which was two (short-term and long-term MA)

I then set my short-term MA to 50days and I selected a colour for it by clicking on style.

I set my long-term MA to 200days and I selected a colour for it by clicking on style.

• The two MA (the short-term and long-term MA) will be displayed on the chart.

Death cross on a chart

The above chart is a 2hours BTC|USD chart. The green colour MA represents the short-term MA while the red represents the long-term MA.
The formation of a death cross on the chart indicates a downward trend in the price of BTC and it also implies that sellers will be taking over the control of the market.

Golden cross on a chart

The above chart is a 2hours BTC|USD chart. The green colour MA represents the short-term MA while the red represents the long-term MA.
The appearance of a golden cross on the chart indicates bullish uptrend.
It therefore means that the buyers will be taking over the control of the market.

Question no 3:
What is Binance P2P and how to use it ?
How to transfer cryptocurrency to p2p wallet?
How to sell cryptocurrency in local currency via p2p (any country or coin)(screen shot neccessary to verify account)

What is Binance P2P

P2P in the crypto world means peer-to-peer. Binance P2P is an avenue or platform where traders and investors of cryptocurrency buys different kinds of crypto asset with fiat currency.

This platform allows one to buy directly from the seller or sell to a buyer and binance serves as an escrow that ensures that transaction between the buyers and sellers successfully completed. The Binnace P2P platform also offer users different methods of payment.

How to transfer cryptocurrency to p2p wallet

• Step1: Log into your Binance account

• Step2: Click on “Wallets” and then ‘‘Spot’’ tabs, select “Transfer”.

• Step3: select the crypto type you want to transfer, I used BNB in my own case, input the amount to be transferred and then click on transfer to confirm.

• A message will pop-up to notify you of a successful transfer.

How to sell cryptocurrency in local currency via p2p (any country or coin)

• To sell cryptocurrency I clicked on P2P trading after logging in

• When the p2p trading opens, I selected on the sell option.
• Then I clicked on where is labeled 2 on the screenshot below to change the currency to my local currency (NGN)
• On the ad section, select an ad that suits you, select the mode of payment and input the amount of crypto you want to sell and then confirm to sell.

N\B:The P2P platform is where traders can buy or sell cryptocurrencies.

Question no 4:
What are the things to keep in mind during P2P trade and describe its four advantages and disadvantages.(own words)

During P2P trade, the following but limited to keys be kept in mind

• It is important for one to be very careful of ads with extremely low prices as fraudulent sellers uses this means to lure traders.

• One should have patience as a virtue during P2P trading as some buyers might take longer time to make payment.

• The current price rate of assets should be in mind during P2P trading.

• A user is seen as more reliable when the user's have a high number of completed successful transactions.

• It is important to check the mode of payment of a seller or buyer so as to know if it corresponds with your own mode of payment.

• It is important to confirm payment when selling assets on P2P before releasing crypto assets.

• Avoid any form of third party payment.

Advantages of P2P

• P2P is an easy and fast way of exchanging fiat money to cryptocurrency or cryptocurrency to fiat money through the process of selling and buying regardless of the distance between the buyer and the seller..

• P2P does not involve transaction fees.

• Another advantage of P2P is its wide range of payment, with this feature users with the same fiat money can easily connect.

• P2P trading is very convenient as both buyers and sellers can perform transactions at any given time and place.

• The Escrow in P2P makes the platform more reliable and secure.

Disadvantages of P2P

• One major disadvantage of P2P is the issue of delayed completion of transactions from some sellers and buyers.

• Just as an open market, P2P is faced with the issue of fraudulent sellers and buyers.

• There is no means of funds recovery in a case of misplacement.

CONCLUSION

In the financial market, the golden and death cross are two important patterns to the technical analysts. It tells when to buy and sell a crypto asset.
P2P trading is a fast, simple and convenient means of converting crypto assets to fiat money vise versa.

CC;
@yousafharoonkhan