Crypto Academy Season 3 Week 5 - Homework Post for Professor @imagen

For, the investment in the currencies, I have chosen Cardano ADA. The Cardano's network has a crypto token called ADA which I chosen.

For the investment in ADA, go to the website Binance. If you are using mobile, then you have download the binance application.

Now, first step is to go to the Binance wallet. I have logged in to the wallet and now, I am showing the screenshot of my Verified Binance Account.

Now, search for the currency that you want to buy like as I chose ADA/USDT as shown in the screenshot below. Click on the Buy option in the bottom right corner to buy the coin.

(ADAUSDT in Binance)

Then, mark the price at which you want to buy. I am buying ADA at 1.2655$ price range. I bought ADA for 13 USDT. Then click on Buy ADA.

At the trade history, you will find all the trades that you did. In the trade history, my investment is showing. You can see the buy order details. I have make an investment of 13$ as shown in the screenshot below.

As, you can see that I got 10.37 ADA from the investment of 13 USDT at the price of 1.2655.

REASON FOR CHOOSING ADA

I have chosen ADA to invest because it has the following features:

• ADA is the project of Cardano and you know very well that cardano is a decentralized blockchain which has the association of proof-of-stake consensus with in its network.

• The algorithm and technology that cardano uses is made in such a way in which there can be made changes without blockchain fork. And so many other blockchains can be created.

• The developers of Cardano Project are very Experienced and have good reputation.

ITS MARKET CAPITALIZATION AND POSITION IN THE CRYPTOASSET RANKINGS

The ADA currency of Cardano has a good market Capitalization of $42,121,958,360. The fully dilited market Capitalization of Cardano is $59,112,507,123. The market dominance of ADA in the crypto market is 2.68 percent.

(image taken from Coinmarketcap)

The Crypto asset ranking of ADA is #5. You can see that in the website of Coinmarketcap. The rank of 5 is the overall calculation of capitalisation and volume supply. You can see the rank in image given below.

(Image from coinmarketcap)

OBJECTIVE OF PROJECT BEHIND THE COIN

The Cardano has a very efficient scalability. The cardano has developed a technology by which they can manage a multiple number of transactions which can be mined at the same time simultaneously. And this scalability offers the decrement in the cost of mining.

There are many developmental researches involved in the development of the blockchain of Cardano. And so this also makes the project more Sustainable.

The cross blockchain transactions are somewhat associated with complexity. This is also resolving by the cardano project technology. This makes the project interoperable. The objective of the coin is very clear and efficient which gives user a good satisfaction.

FOUNDER:
The founder of ADA's blockchain i.e. Cardano is Charles Hoskinson. It is also known as the co-founder of Ethereum. He collected many experts with him and with them he created the Cardano.

ROAD MAP OF CARDANO

The road map of cardano is divided into five phases. The name of all the five phases are taken on the name of the writers and poets. The five phases are given below:

(a) Byron Phase : This phase is the Foundation phase

Source

(b) Shelley Phase : This phase is the phase of decentralization.

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(c) Goguen Phase: This phase has the use of smart contracts.

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(d) Basho Phase : This is the phase of scaling.

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(e) Voltaire Phase : This is the phase of Governance.

Source

SPECIFIC PURPOSE OF CARDANO

The main purpose of the Cardano is to improve the phase of blockchain technology and to create the technology which is advanced and which can handle problems related to the growth of block chain and mamy more problems and at a very low cost. They wants to make the cryptocurrency available for more areas.

The Evening star candlestick pattern is the pattern that traders use to detect whether there can be a reversal in the trend. This reversal pattern is used to when there is a downtrend in the price movement.

It consists of three candlesticks which are placed in the order: (i) a strong bullish candlestick, (ii) a small body weak candlestick, and at (iii) a strong body bearish candlestick as shown in the image below.

Image taken from Source

● The first white candlestick which formed first day shows the continuation of rise in price.

● The second white candlestick formed in second day, which shows that there is a more increment in price.

● The third large candlestick is shown on third day, shows that there is a presence of sellers that are controlling the market price.

If, the evening star candlestick pattern appears at the top of the market chart then it indicates that there is a major bearish reversal coming in the market trend.

Hit Rate: The hit rate of the evening star candlestick pattern is of around 68% to 70%.

Bullish Abandoned Baby:
Traders use the bullish abandoned baby pattern to detect a reveral of downtrend in the market. The pattern of Bullish Abandoned baby consists of three candlesticks.

Source

The first candlestick is a strong down candle, the second numbered candlestick is known as gapped down doji, and the last candlestick is a strong gapped up bullish candle. The bullish pattern, indicates that there is the end of downtrend and now it is the starting of a higher movement of price.

When, there is bullish abandoned baby at the down of the trend, then it is considered as the signal of a bullish strong reversal pattern in which market goes from bear trend to bull trend.

Bearish Abandoned Baby:

It is the opposite of Bullish abandoned baby. The bearish pattern is a rare pattern. It is a pattern of reversal which associates the downtrend of price. This is similar to evening star pattern.

It consists of three candles in which the first candle is a strong bullish candle which indicates buyers controlling price, the second candle known as Dogi candlestick and the last strong candle shows sellers controlling price.

Source

When, there is bearish abandoned baby at the down of the trend, then it is considered as the signal of a bearish strong reversal pattern in which market goes from bull trend to bear trend.

Percentage: The correct percentage order of Abandoned baby candlestick pattern is found to be around 68%.

● BTC CHART OF 3 DAYS INTERVAL (29th-31st July)

(BTCUSD 15M chart)

In the 15 min timeframe chart of btcusd, I found 2 candlestick patterns which are:

(A) BULLISH ENGULFING CANDLESTICK PATTERN: This pattern is visible when a small black candlestick follows a big white candlestick. This pattern mostly signals reversal of trend.

(B) THREE WHILE SOLDIERS CANDLESTICK PATTERN:
This pattern consists of three white candles in a sequence indicating a bullish price trend. This indicates there is a presence of buyers and the market will go from bearish to bullish.

● BTC CHART OF 7 DAYS INTERVAL (25th-31st July)

In the 15 min timeframe chart of btcusd, I found 1 candlestick patterns which is:

(A) THREE BLACK CROWS CANDLESTICK PATTERN:
This pattern consists of three black candles in a sequence indicating a bearish price trend. This indicates there is a presence of sellers and the market will go from bullish to bearish.

CONCLUSION

Now, it is the time for conlusion of the post. The cryptocurrency market is very volatile and there are high chances of loss if we do not trade with strategy. And for this, the candlestick patterns have a significant role as they are used to check the upcoming trend of the markets.

By the post of the professor @imagen, I understood many different things about blockchain markets and the lecture is very interesting. I completed my homework post because of him. I am thanking to @imagen for this wonderful and informative lecture.