AVAX/USDT Buy -Crypto Academy / S6T2- Team Trading Contest Post for Reminane
Hello steemians, I would love to join Prof. @reminiscence01 to welcome each and everyone of us to week one of the crypto academy trading competition. Today, I will be trading AVAX/USDT pairs on spots trading to make some good profits. If you reach the requirements, you could join me to do same by reading up the competition rules on this link.
Introduction to AVAX
AVAX is the native token of the Avalanche Protocol. For those who don’t know what a native token is. It is the official currency of the platform and this simply means nothing can be done on the Avalanche protocol within owning some AVAX in your wallet.
Avalanche protocol was created and launched sometime in 2020 during the world COVID-19 pandemic period. It is a replica of the Ethereum network but difference is that it was made more scalable and cheaper to use. It was built with smart contract technology which allows developers to creates various sorts of blockchain applications and also tokens. The Avalanche protocol was also designed with the EVM (Ethereum Virtual Machine) which creates an opportunity for developers who are interested in transactions their dApps from the Ethereum platform to Avalanche. It’s so easy and all they need do is copy and paste the solidity codes on the Avalanche protocol.
The Avalanche protocol is sometimes described as a blockchain of blockchains because of its ability to host the creation of other blockchains called subnets on its blockchain. Users or organizations who would love to create a blockchain system but can’t afford to build one can simply apply for one an specify how they would love it to operate. They are provider with the option to create a permissioned or permissionless subnet with whatsoever consensus mechanism.
The Avalanche protocol was built with 3 blockchains. The p chain, x chain and c chain. The are all utilized for different purposes.
P chain: The P chain uses the snowman consensus mechanism to control and organize all operations that go on in each subnet. Creation of new subnets and check mating of active subnets are done here.
X chain: The X chain was built with the Avalanche consensus mechanism to control the creation of new tokens and handle transactions which has to do with the AVAX tokens on the chain.
C chain: It was built with the snowman consensus mechanism. Here all smart contracts and decentralized applications are hosted.
The Avalanche Protocol was built by a team known as Ava labs which was founded in 2018 by two PHDs and a Professor in Cornell University. Professor Emin Gün Sirer, Dr. Kevin Sekniqi and Dr. Maofan “Ted” Yin. We can say that the Avalanche protocol has been a successful platform.
AVAX is ranked 10th with a market cap of $21,541,017,363 and a circulating supply of 265,329,983.17 AVAX. It’s current price is $81.19 and if we look at the above image, in the last year, MATIC has attained a high of $146.22 and a low of $9.34.
Exchanges are platforms were cryptocurrencies can be traded on. Here are the exchanges which trade AVAX.
- Binance
- Bitfinex
- Kucoin
- Gate.oo
- Huobi etc.
- OkeX
- Coinbase
While looking at the charts, I highlighted some patterns which gave me an indication that price was about to go into an uptrend so I decided to place my buy trade. Well, this is just an intraday trade for some profits.
Aside that, AVAX has great use cases on the Avalanche platform. Any one planning on making crypto currency investments can still hodl long term.
From my analysis chart above, I used the MA 50, Bollinger bands indicator with some price action support and resistance lines and patterns.
For this chart, I noticed the price was forming a falling wedge pattern so I drew my support and resistance lines. The top of the wedge was my resistance line and the lower part of the wedge was my support line. The price kept on consolidating inside the wedge until a break at the resistance line. I immediately placed a by trade and an OCO sell trade inserting my stop loss below and my take profit level at the highest price point in the wedge.
First, I made a buy trade at the market price on spot trading AVAX/USDT.
I changed the trade type to an OCO trade in order to include my take profit price and stop loss. We should all note that, when using the OCO feature, for buy trades, you trade on the sell side and for sell trades, you trade on the buy side.
On the trade,
Take profit: $82.5 (below the resistance level)
Stop loss: $75
If you look at the chart above, price broke the resistance level and hit my take profit level. So I made some profits after all. You can see the Binance order receipts to see my confirmation that the trade got filled.
I would recommend everyone to buy CAKE long term for so many reasons.
Subnet technology: The Avalanche blockchain came up with a new and unique technology which allows organizations or even the government to create blockchains on their blockchain. This is done easily and serves this organizations the stress of building something new from scratch. Features like this would lure a lot of new users and institutions into the platform and helps increase the value of its native token AVAX.
A better alternative to Ethereum: The Avalanche protocol accepts Ethereum solidity codes and also the creation of new decentralized applications. Offering an opportunity for developers to transfer their dApps easily to a faster and cheaper platform will increase the user base of the platform.
Burning Mechanism: A transaction fees on the Avalanche protocol are burnt as part of its deflationary control measures. This would help reduce supply of the token and increase its value.
Today, I made a buy trade on AVAX/USDT trading pairs and I made some profits after all. I so much thank all the Profs for teaching me all I know
CC: @reminiscence01