Hello everyone 👋 i hope you all are fine and having a good day . I feel so good while making homework posts because i always learn so much while making a homework post. Today I am here to make my homework post given by professor @yousafharoonkhan . so lets begin our task ;

Let's attempt all the questions one by one ;

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.)

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⚫ Death Cross :

In simple words we can say that; Death cross occurs when short term average (usually 50 days) moves in downward trend and crosses below long term average (usually 200 days) .

Source

Death cross has a great significance to determine market upcoming situation . While we are in market and make an investment , we have to consider all the consequences. Indicators are always important because they are like our guides and we can easily make right decisions by using such indicators .

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⚫ Golden Cross :

Golden cross can be simply explained as when short term moving average trends upward in graph and crosses above the long term moving average .

Source

Like death cross it also have great impact on the decision making in market. It way of being important will be discussed below ;

Effect on the market :

They have great effect on the market. Golden cross happens when short term moving average crosses the long term moving average which means that the market is getting positive so the assets is being bought and the tendency of investors is towards buying so it is quite possible that the value will increase significantly.
Similarly , In case of Death Cross the scene is opposite because it occurs when the market becomes negative and values start to fall . when the death cross occurs it symbolises that the tendency of whole market is towards selling and hence the bearish trend will be there in futuristic days .

• A golden cross actually mean a long-term bull market keep going , On the other hand a death cross means a long-term bear market.

• Both crossovers are considered more effective when they involve a high trading volume.

• The long-term moving average is considered as major support level (in the case of the golden cross).

• Each cross may occur as a symbol of trend change, but they more frequently occur as a strong confirmation of a change in trend that has already happened.

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?

Moving average is average that is taken using the subset of data from the full data with respect to time and other details .
The moving average is further taken in two basic catagories
Short term moving average
Long term moving average

• The short term moving average is taken using mostly 50 days. However people also use their desired period of days like 21 days .

• The long term moving average is usually taken using 200 days . However people also use 100 days but 200 days is considered standard for LMA.

As we have explained that this indicator uses the trade volume and values to Indicate the current trade , So for this indication the record of previous trade is necessary and thats why we take specific days into account and how they are linked with trade, we have already discussed it above .
Death cross is mainly concerned with SMA ( 50 days ) while Golden cross is mainly concerned with LMA ( 100 ) days .

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

It is not very difficult to check golden cross and death cross. You can check it easily from any platform on the graph of specific currency which you want to check . I use FTX so

• i opened the chart on Ftx and then clicked on graph settings .

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• Then i searched for Moving average Cross which was as MA cross .

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• Now you have to set the limit of days for short term and long term .

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• Now you can easily check the death cross and Golden cross . When the green line which is for short term MA crosses above the red line which is for long term MA. You would have Golden Cross.

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• Similarly for Death cross you can check where red line crosses downward the green line . This would be the death cross.

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Explain Death cross and Golden cross on the chart, (screenshot necessary)

First of all to understand , we have to observe them so let me attach screenshots for them first for you .

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• In case of Death Cross , the reason behind the cross is the tendency of market towards selling and so the over all volume get effected and it is easy to predict that the market is going down . Here it is important to mention that after death cross the market faces bearish trend and this is like a fact for 95% cases but sometimes it is also possible that the prediction can go wrong because the whole thing is all about psychology and market behaviour .

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• In Case of Golden Cross the scenario is opposite to the above because the green line goes above the red only when the tendency is towards the buying and market will obviously face a bullish trend ( continuous increase in prices ) . It is because when Their is positive market psychology the overall market moves towards betterment and stability and it is a golden opportunity to invest snd hold till a specific point .

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All the screenshots were taken from FTX pro mobile app.

Question no 3:

What is Binance P2P and how to use it ?

Binance is a online exchange and trading platform. It is one of the most best and famous exchanges . It enables you to perform many operations . Before explaining them , let's check the interface in the below screenshot .

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• Here you can trade between hundreds of currencies . They can be exchanged and traded.

• You can trade and get payment in your native currency in your native banks.

• Here you are also facilitated witn wallets like spot and p2p.

• You can store your savings here .

• You can keep an eye on crypto charts with many indicators .

• To use it you have to make your account first using your Gmail . Then you have to verify it with Kfc verification using your national identity .

• You also have to add a payment method , you can add one or many.

• After verification of account , you are all set to trade and perform various tasks.

How to sell cryptocurrency in local currency via p2p (any country or coin)(screen shot neccessary to verify account).

To answer this question i sell my cryptocurrency on binance and took screenshots of all steps. Let's check them out ;

• First of all you have currency in spot Wallet and you have to transfer it .

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• You have to select the currency and transfer it from spot to your p2p wallet .

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• Then after getting your Currency in p2p wallet , you have to sell it . For that you can chose any seller According to your price limit and ratings ;

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• After that you have to click on sell and selecting your payment method .

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• Then a time starts running and their is a proper time for order to be accomplished and if don't get accomplished on time the order gets cancelled . You can also chat with seller in a specific chat inbox.

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• When seller has sent the money you should check it and then confirm the receipt .

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• After confirmation from the attached phone number, your crypto is released and you can give rating to the seller , either positive or negative .

• So these were all the steps that you need to follow while selling on p2p on Binance .

Question no 4:

What are the things to keep in mind during P2P trade and descrbe its four advantages and disadvantages.(own words)

Obviously there are advantages and disadvantages of p2p and they are as follows ;

Advantages :-

• You can freely engage with the seller so convenient selling purchasing .

• Ease of withdrawal .

• Quick and efficient transactions .

• Security to both peers by plateform .

• Appeal feature to overcome any fraud .

Disadvantages :-

• You can get cheated .

• A difficult and long procedure if you accidentally make an mistakes like earlier release .

• Awaited order. You can't place a new one until the old time slot is finished even the seller isn't available.

• Trust issues .

• Can get hacked because the algorithms don't let you know what is going in and out .

So, that was all about the advantages and disadvantages .

Thanks for reading. Leave your reviews in comments section . I hope i replied all the questions as asked by professor .😊😇✨

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• Submitted by :
  

  @shahidchoudary

• Submitted to :
  

  @yousafharoonkhan

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