BTC/USDT Buy -Steemit Crypto Academy | S6W1 | Team Trading Contest Post for Crypto-Empires
Hello steemians, I would love to join Prof. @reddileep to welcome each and everyone of us to week one of the crypto academy trading competition. Today, I will be trading BTC/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 BTC
BTC is an abbreviation for Bitcoin. For those of us in the cryptocurrency world, we must have heard a thing or two about Bitcoin. In the world today, physical funds known as fiat were invented as a medium of exchange in a country. These fiat currencies are highly affected by government policies and the economic status of that country and this makes fiat not be a really good store of value.
This why Bitcoin was created, to establish a decentralized and uncontrollable medium of exchange which can not be affected by any central authority.
The bitcoin was the first ever virtual currency to be created. On the 31st of October, 2018, a document called a whitepaper was released on Bitcoin.org. The paper contained information of what bitcoin was about and how it will eliminate intermediaries by introducing a safe peer-to-peer feature which will connect a sender and a receiver without the need for banks.
Finally, on the 3rd of January, 2009, BTC was launched by a famous man called Satoshi Nakamoto and a transfer of 50 BTC was made and recorded on the blockchain. From that day, more people adopted the idea, an other alt coins like ETH were created. BTC could be mined using the Proof of work consensus mechanism, this mining process served as a means of validating and creating blocks for transactions to be recorded on the blockchain.
BTC is ranked 1st with a market cap of $736,015,260,739 and a circulating supply of 18,966,112.00 BTC. It is set to be issued as block rewards to miners until BTC surpasses its total supply of $21,000,000 BTC. BTC has a mechanism called halving which slashes block rewards by half every four years. This helps to reduce the rate of inflation on the BTC token. The last halving took place 2020 and currently, miners receive 6.25 BTC as block rewards. In the last year, BTC attained a low of $28,893.62 and a high of $68,789.63.
Exchanges are platforms were cryptocurrencies can be traded on. Being that BTC is the first coin to be created, it can be traded on all exchanges.
- Binance
- Huobi
- Coinbase
- Bitfinex
- Okex
- Kraken
- Kucoin
- FTX
- Uniswap
- Pancake swap
- Sushiswap
- BitFlyer etc.
Today, I'm making a buy trade on the BTC 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.
Well, at the moment, I have no certain idea of how long BTC will rise because of how volatile the markets have been. But, long term, BTC has high potentials and is the best and safest crypto currency to hodl.
If you look at the chart above, I used the Ichimoku cloud and the RSI for this analysis.
First of all, I observed that the cloud was beneath the price action and this simply means a bullish trend reversal or a bullish trend continuation.
Looking at the RSI, the indicator was in the overbought region which signified a sell order but sometimes indicators can give false or faulty signals. With the support and resistance lines I drew above, I noticed that price had broke the resistance level. This usually signifies the beginning of an uptrend. With my analysis I decided to place a buy trade on spots trading with my take profit at the highest resistance level on the chart and my stop loss slightly below my entry point.
First, I made a buy trade at the market price on spot trading BTC/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: $39,200 (resistance level)
Stop loss: $38,500
Here is the confirmation of my trade on the left. On the right hand side, we can see that the coin sold at my take profit level. Which means my analysis were right. If this was a futures trade, I would have made much more profits.
Well, if you look at the trade I did above, I already sold my BTC assets and right after I sold, price came down to $39,150.
At the resistance level, there is a force which opposes the trend in a market. From the chart, the price action was approaching another resistance level and that’s why I sold the BTC coin close to it.
I still plan to buy BTC again but when it approaches the support level.
I would recommend everyone to buy BTC long term for so many reasons.
Genesis Coin: BTC was the first cryptocurrency to be created and the most successful among all other coins. It is currently ranked number one according to its market cap and is so popular. A lot of crypto currency investors have strong belief in it over the rest.
Alt coins price action depends on BTC: In the crypto currency ecosystem, all coins are highly affected by the price action of BTC. If there is bad news which dumps the value of BTC, all the coins in the market will also experience bearish trends but BTC is not affected by the price movement of alt coins. This makes BTC more reliable.
Halving: Halving reduces the inflation rate of BTC which sustains the health of the coin.
Bitcoin is the father of crypto currencies and is the most valuable asset in the crypto ecosystem. Today, I made a buy trade on the BTC/USDT pairs on Binance and realized some profits.
Cc: Prof. @abdu.navi03