Crypto Academy Season 3 Week 3| DCA to create a Portfolio - Homework Post For @[@allbert]

Greetings to professor @allbert. I have read your post about creating a portfolio and it looks very interesting. I have understood all the concepts of your post and now I am doing my homework post.

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Question 1: Select two Crypto, perform fundamental analysis, and based on your fundamental analysis explain why you chose them. Exclude BTC, ETH, RUNE. Develop and justify your answer.

Well, If we talk about the answer of this question, I have chosen two Cryptocurrency coins which are very popular. Those are MATIC and SXP.

Lets talk about both the coins one by one in detail:

POLYGON (MATIC):

The another name of MATIC is Polygon. It is a token which comes under the network of Ethereum. The aim of this project is to create a multi-chain environment of blockchains that are compatible to Ethereum.

At the first time, when the project is launched, it was named as The MATIC Network. But after that, when the scope of the project has expanded/increased, then it was renamed as 'Polygon'.

Lets talk about some good information of Polygon.
So, Polygon is an Indian network which has its startup based in Mumbai. The four software engineers had built the polygon. The MATIC tokens are always issue on a monthly basis. Now, MATIC has around 4,877,830,774 MATIC Tokens are in circulation and the maximum supply matic is of 10,000,000,000 MATIC Tokens.

As the Matic has became popular in 2021. The price of MATIC fluctuated from a low price of $0.85 to a high price of $1.2. It Matic has seen major growth in 2021.It has reached a good number of investors in this year. If investors decide that matic can be a good investment in this year, then there are chances that it can reach the price of around 3$ to 4$ in the coming parts of the year.

Currently, the price of Matic is $0.8872 i.e. aorund 66 inr. In terms of maket value, it ranks 17th position. The matic is cuurently in the watchlist of around 4 lakh people which is a very big number. You can see about polygon price in the screenshot below.

Polygon has it markets in various pairs like as UDST, BUSD, USD and many more. You can check its markets on coinmarketcap.com.

The chart of the Matic token is shown in the screenshot below which is taken from coinmarketcap.

MATIC has the project of which you can get informed more by reading polygon white paper. You have to visit on the official website of polygon which is polygon.technology.
The screenshot of the page of thus website is shown below.

You can also check the official twitter page of Polygon where you will get all the related information about that coin. We get all the big and small information about polygon(Matic) on its social platform.

SWIPE (SXP)

Lets take some information about sxp:
The swipe is a platform which has three main existing products: These are (i) The swipe multi assest mobile wallet, (ii) the swipe cryptocurrency funded debit card and (iii) The swipe token.

In the Swipe ecosystem, the swipe wallet is the main point to access. This wallet is used to store the different types of fiat currencies and cryptocurrencies.

The Swipe token has founded by a Bitcoun investor whose name was Joselito Lizarondo who is currently the ceo of that platform. The swipe token was takem by Binance in 2020. SXP is growing much as in current time, this coin is available for different exchanges which includes many largest platforms also.

Well, the total supply of SXP is around 300 million. Within the Swipe network, when SXP is used to pay for fees , 80% of the SXP used to pay for those fees is burned by a smart contract.

The current price of swipe token is $1.73. By the end of 2021, SXP is expected to hit the price of $7.272. The price you can see in the screenshot given below.

screenshot taken from coinmarketcap.com

The maximum supply of Sxp is 239,612,084. The swipe has its markets with many pairs such as USDT, BTC etc.

chart of SXP

You get read the white paper of SXP to get more knowledge about the coin by visiting on the website swipe.io . There is a twitter handle of Swipe where you can get much information about it. The page has 272.6K followers.

Reason for choosing MATIC and SXP:

The first reason why i chose both matic and sxp is that the coins give a long term benefit to the users.
The next reason I chose matic is that it becomes more popular in 2021 and it has good chances of profit. And SXP has a high possibility of surpassing its current ATH in this year.

QUESTION2: Through your verified Exchange account (screenshot needed), make a real purchase of one of the cryptocurrencies selected in the first assignment and explain the process. The minimum investment must be 5USD (mandatory) and must present screenshots of the verified account and the whole operation.

I use Binance app for trading and investing. I also use Wazirx Exchange but Binance is the main Exchange where I have my 90% portfolio.

Verified Binance Account

As You can See, I have provided the screenshot of my Binance Account which shows that My account is verified.

Well, I have already told that I am holding Matic and SXP coin in my Binance Exchange Wallet. And I am holding both of the coins for long term and expecting a good return.

Let me show you a real transaction of buying Matic from Binance Exchange Wallet.

When I searched Matic, Then Matic appears in som many pairs like Matic/usdt, Matic/btc, Matic/bnb, Matic/busd and some more pairs. But I usually buy Matic in Matic/usdt and Matic/btc pairs.

Matic Pairs

Let me show you a real purchase of Matic Coin in Matic/usdt pair. I clicked on Matic/usdt pair. Then this interface opens as shown in the image below.

Matic/usdt Pair in Binance Exchange.

As you can see, The current price of Matic is $0.88. Now, I have placed buy order of 12 Matic Coins at price $0.889 which costs $10.6. You can see in the image below.

*Buy order of Matic coin.

Then I successfully purchased 12 Matic Coins from Binance Exchange.

Purchased 12 Matic Coins.

As Now, You can see I have a total of 58 Matic Coins in my Portfolio.

Now, Let me show you my previous transactions of SXP coins made in Binance Exchange Wallet.

Order Details of Sxp Coin

I have made this purchase at 18th June. I have purchased SXP coin at price $2.19. I purchased 113 SXP at that time. Now, It's price is dumped a little bit and I am thinking of buying it again at it's current price.

So, This is all about my Real transactions made in Binance Exchange.

Question 3: Finally, make a simulated exercise, using the DCA method to perform the purchase of two assets and present charts showing the data of days in which the operation was performed, price of purchases, average price, sell point, percentage of profit or loss.

Now, for this question, let me explain the meaning of DCA by an example. Suppose, I want to purchase SXP of 50 USDT. Now, the main motive of DCA is that, I should not buy the 50 USDT whole in one time. We should break it in parts like the parts of 10 USDT.

trading view chart of sxp

I have taken the 10 USDT parts on different prices to prevent the loss of taking whole at one price and I took them as shown below:

I had taken 5 purchases which are as follows:

1. Date of Purchasing - 6 May, 2021; Price - 5.2 USDT
2. Date of Purchasing - 12 May, 2021; Price - 4 USDT
3. Date of Purchasing - 20 May, 2021; Price - 2.80 USDT
4. Date of Purchasing - 20 June, 2021; Price - 2 USDT
5. Date of Purchasing - 26 June, 2021; Price- 1.7 USDT

In this way I purchased SXP. Then I found the average of all the prices which is known as Averaging. The average price is the individual price that we buy.

Average:- (5.2+4+2.8+2+1.7)/5 = 15.7/5 = 3.14 USDT

So, this is the process of DCA strategy. The another thing is that, if you want good profit from DCA, you should buy during Bear period instead of Bull period.

If I had bought the total SXP of 50 dollers at one time, than I would be in a major loss. But due to buying in parts, I will get a good amount of profit in the future.

CONCLUSION

The DCA strategy is good than buying the assets at one time. It can give you good profit. Before the investment in any coin we should do the fundamental analysis of both the coins. Without it, we should not do investment otherwise we can face a loss. Through the lecture of professor @allbert, i have practically done it and gained much valuable information about it. This lecture has proved much beneficial to me and I am thankful to the professor.

Thank You.