BNB/USDT Buy -Steemit Crypto Academy | S6W1 | Team Trading Contest Post for Crypto-Empires
Hello steemians, I would love to join Prof. @reddileep and Prof. @abdu.navi03 to welcome each and everyone of us to week one of the crypto academy trading competition. Today, I will be trading BNB/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 BNB
BNB also known as the Binance coin is the native token for Binance Smart Chain (BSC). For those of us who don’t know what a native token is, a native token is the official token used to cover all transaction fees and bills that take place on a network. It is also the official currency used on a platform. So basically, you can’t do anything on the Binance smart chain network without having BNB in your wallet.
As well as BNB is a native token for BSC, it is also an exchange token for the centralized Binance trading platform which is used by traders to participate in Initial Exchange Offerings (IEOs) on the launch pad and also, trading with BNB as a pair reduces exchange trading fees.
So we can all see that BNB has so many use-cases.
Although BNB is a native token of the binance smart chain, it was not originally launched on the BSC. BNB was launched on the Ethereum blockchain in June 2017. Funds generated from this Initial Coin Offering (ICO) we’re used to build the Binance platform and the smart chain as well.
Investors who participated in that ICO today have made profits in thousands of percent and we can all say that the Binance platform was a successful project. Today, it is currently the number one exchange in the world.
The founder and CEO of Binance is Changpeng Zhao with the headquarters at Cayman Islands.
BNB is ranked 4th with a market cap of $58,443,408,241 and a circulating supply of 165,116,760.89 BNB. At the moment, the market price for BNB is $353 and in the last one year, it achieved a low of $193.85 and a high of $690.93. The BNB token also has a burning mechanism which helps reduce the total token supply in order to promote the health of the token
Well, the exchanges are platforms were cryptocurrencies can be traded on. From my explanation of BNB, it is an exchange coin and that’s why it isn’t traded on so many exchanges. This is because, other competitors will see it as a business threat to support or list the BNB token.
For now, these are the exchanges which support BNB
- Binance
- KuCoin
- Bithump
- FTX
- Pancake swap
Today, I'm making a buy trade on the BNB token. This is because my analysis tell me that there will be a bull run in the market. This is just a short term intra-day trade for some quick profits. I plan to sell at the resistance level.
For now, the cryptocurrency markets are in a dip but BNB has a high tendency of hitting the current marketcap of even the ETH token. This is because, the Binance smart chain is much faster and scalable than the Ethereum network. For this reason, BNB has high potentials to rise for a long time.
If you look at the chart above, I used the Ichimoku cloud and the Parabolic SAR with some price action support and resistance lines for this analysis.
First of all, I observed that the cloud was beneath the price action and if you look closely at the chart, there was a crossing at the extreme of the cloud. The senkou span A crossed the senkou span B to change the colour of the cloud to to green and this simply means a bullish trend reversal.
The parabolic SAR was also beneath the price action and this confirms a bullish trend. With the support and resistance lines I drew above, I figured out where I should place my take profit level and my stop loss. To reduce risk, I placed my take profit point below the resistance line as you can see above
First, I made a buy trade at the market price on spot trading BNB/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: $365 (below the resistance level)
Stop loss: $330
Here is the confirmation of my trade. From the screenshot on the right, this is proof that I made my profits and my coin sold at my take profit which is $365.
Well, if you look at the trade I did above, I already sold my BNB assets and right after I sold, price came down to $353.
I put my take profit at the resistance level because from my technical analysis, the price movements are meant to reverse to a downtrend at that level.
I still plan to buy BNB again but when it approaches the support level.
I would recommend everyone to buy BNB long term for so many reasons.
Highly Scalable network: Scalability is the ability of a network to overcome high transaction work load and still produce high throughput or transaction speed. The Binance network is much more scalable than the popular Ethereum network and this attracts new developers to create dApps on the smart chain. The more users adapt to the BSC, the more the value of BNB will increase.
Cheaper transaction fees: The Binance smart chain offers lower fees for transactions on the network which is much better than the fees on the Ethereum blockchain.
Burn Mechanism: BNB has an annual mechanism where the amount of BNB in circulation is burnt in order to reduce supply of the token and increase its value.
BNB use-cases: BNB has a high use-case to the Binance smart chain and the Binance platform. Transaction and trading fees are paid in BNB, IEOs are done with BNB etc and this makes BNB very important to users in the crypto ecosystem. The more the demand for BNB the more it’s value will be increased.
BNB is the native token of the BSC network and the exchange token of the Binance trading platform and this makes in important to the traders and investors in the crypto ecosystem.
Today, I made a buy trade on BNB and experience some good profits. I so much thank the Professors for all they have taught me
Cc: Prof. @abdu.navi03