Crypto Academy | Season 3 | Week 3 - Homework Post for professor @allbert
Thanks to God for the grace I have to participate in this assignment this week.
Thanks to @allbert for taking the class as well, Here is my homework submission. Go through it and enjoy my post
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. Be original..
For the purpose of this section of the assignment, I will be choosing Steem and Tron (TRX).
Steem is one of the reward coins used on steemit social media. Steemit is a decentralized social media that is built on blockchain, it was founded in 2016 by Need Scott and Dan Larimer who is also the chief executive officer of bitShares with the purpose of commending users' efforts on creating quality content. Steem is used by the user of steemit to power their account and it is withdrawable and tradeable on many exchange platforms.
Steem is one of the cryptocurrencies on coinmarketcap website, it has the rank of #172 on the website With a current price of $0.421 and has it lowest and highest value in the last 24 hours to be $0.4167 and $0.4367 respectively.
Steem has a market cap of $164,367,916, 24 hours volume of $16,889,141 and 390,419,338.23 STEEM
Steem is currently available on a large amount of the exchange Platforms that are in existence.
It's available in different pairs e.g STEEM/USDT on Houbi global, Poloniex, Pionex, BiONE, MEXC, etc., it is also available in STEEM/ETH on Binance, Huobi, and some other platforms, it is available in STEEM/BTC pair on Binance, Huobi, Bittrex, Poloniex, Upbit, RuDEX and many other pair in different exchanges platforms
Tron was founded in 2017 (September precisely) by a nonprofit organization which is known as Tron Foundation, this foundation is headed by Justin Sun as their Cheif executive officer, this platform allows users to pay for the content they want to access buy exchanging the content with the platform token which is called Tronix.
Many people still don't understand this that Tron is the company while Tronix is the company approved tolen
Currently on coinmarketcap, Tron token takes the number #25 of the available coins with the current exchange price of $0.06273 and a lower and higer price of $0.06105 and $0.06282 respectively in the last 24 hours, it has a market cap of $4,495,108,052, 24, hours volume of $603,685,120 and circulating supply of 71.66B TRX.
TRX is currently available on a large amount of the exchange Platforms that are in existence.
Exactly as steem, it is also available in different pairs e.g TRX/USDT on Houbi global, Binance exchange, Poloniex, Bittrex, etc., it is also available in TRX/BNB pair on Binance, Poloniex, etc., it is available as TRX/ETH on Phemex, OKEx,Bitfinex,Gate.io,Kraken, Poloniex Kukoin, Binance, etc, it is also available in TRX/BTC pair on Binance, Huobi, Kukoin, Liquid, Bitfinex OKEx, etc. and many other pair in different exchanges platforms
I choose these two cryptos because of the following reasons;
1. Integration of Steem & Tron on Steemit:
One of the major reasons why I choose Steem and Tron is the current integration of TRX and Steem on Steemit blockchain.
It's already a good movement to earn Steem and Steem dollars on steemit but the integration of TRX makes it superb. We now earn 3 coins when we post on Steemit (TRX, STEEM, and STEM DOLLARS)
2. Popularity:
Steemit is the first decentralized social media and this is one of the reasons why Steem is more popular worldwide.
Also, the circulating supply of steem as we can see on coinmarketcap website is huge
TRX is also among the popular coins and right now some industries now accept TRX as their payment method for goods. The circulating supply of TRX is also superb
3. Exchanges Approval:
It means something great before a coin could be approved by many exchanges for trading. Most especially, Binance exchange doesn't just approve any coin just how. They need to do some background check whether they are legit or scam before accepting their trade on Binance.
Steem and Tron trading are accepted on most exchanges this means a lot. They are legit currencies
4. Available price prediction:
Most of the available price predictions for both Steem and Tron are good. The next 5 years' prediction by many predictors shows that there will be an increase in the price of Tron and Steem. So, investing in STEEM and TRON will yield a good income for investors.
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 logged in to my Binance account using my mobile app and I press the profile icon to show if my account is verified or not
Here is the evidence that my account is verified, I signed up to binance with my Nigeria mobile number, not email address
Here is my Btc account balance
I press the trades on my home page
I selected the steem/btc pair
I am buying 30 steem with 0.00035850 BTC ($12)
Now, my order is processing and I will be expecting my trade to be successful
My order is successfully filled
Here is my new Steem balance
Question 3:
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. (include screenshots)
The average: To get the average of the above trading, I add all my trade market price (0.912+1.193+0.978+0.865) then I divided it by the number of trade (4)
Total market price of trade: 0.912+1.193+0.978+0.865 = 3.948
Number of trade = 4
Therefore, the average will be 3.948/4 = 0.987
Average price level: After calculating the average, I checked the suitable place to insert the average price line in the
price sector of the chart, then I inserted the line to show where the average of my trading falls.
| Trade Number | Date | Trade Capital | Market Price | Amount Of Coin purchased |
|---|---|---|---|---|
| 1 | April 7 | $40 | 0.912 | 43.86 |
| 2 | April 14 | $40 | 1.193 | 33.53 |
| 3 | April 21 | $40 | 0.978 | 40.90 |
| 4 | April 28 | $40 | 0.865 | 46.24 |
The above table shows my trading on STEEM with USDT, it shows the trade date, the amount I used in buying my Steem, the price of each Steem in $, and the equivalent amount of Steem that I am able to buy with my $40 capital.
The highest price I bought was on the 2nd trade which I made on the 14th of April while the lowest price happened to be the last trade which I made on the 28th of April.
To calculate the percentage profit or loss for the above trade; I will first find the increase price, this is the average price minus the current price.
0.810 (current price) - 0.987 (average) = -0.177 (increase)
% increase = Increase ÷ average × 100.
-0.177 ÷ 0.1266 × 100
= -17.93%
The average: To get the average of the above trading, I add all my trade market price
(0.1189+0.1387+0.1238+0.1248) then I divided it by the number of trade (4)
Total market price of trade: 0.1189+0.1387+0.1238+0.1248 = 0.5062
Number of trade = 4
Therefore, the average will be 0.5062/4 = 0.1266
Average price level: After calculating the average, I checked the suitable place to insert the average price line in the
price sector of the chart, then I inserted the line to show where the average of my trading falls.
| Trade Number | Date | Trade Capital | Market Price | Amount Of Coin purchased |
|---|---|---|---|---|
| 1 | April 7 | $40 | 0.1189 | 336.42 |
| 2 | April 14 | $40 | 0.1387 | 288.39 |
| 3 | April 21 | $40 | 0.1238 | 323.10 |
| 4 | April 28 | $40 | 0.1248 | 320.51 |
The above table shows my trading on TRON with USDT, it shows the trade date, the amount I used in buying my Steem, the price of each Steem in $, and the equivalent amount of Steem that I am able to buy with my $40 capital.
The highest price I bought was on the last trade which I made on the 28th of April while the lowest price happened to be the first trade which I made on the 7th of April.
To calculate the percentage profit or loss for the above trade; I will first find the increase price, this is the average price minus the current price.
0.1429 (current price) - 0.1266 (average) = 0.0154 (increase)
% increase = Increase ÷ average × 100.
0.0154/0.1266 ×100/1
=12.16%
Conclusion:
We cannot deny the fact that DCA method can be used by everyone because of the minimum calculation it requires. Yet it's advisable to always perform a trade review before entering market as it will also help traders in predicting the aspect their trade will fall (profit/loss)