LUNA/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 LUNA/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 LUNA
LUNA is the native token of the terra blockchain. This simply means that you can't make transactions on the platform without their official token in your wallet to pay for transaction fees. Basically, everything on the Terra blockchain is done with the LUNA token ranging from, staking, transaction fees on-chain governance etc.
The terra blockchain was founded by Daniel Shin and Do Kwon in 2018. Although, the project was not launched that year. It took the team (terraform labs) a year to develop terra which was officially launched in April, 2019. Terra was created specially for the creation of stable currencies backed to real life assets and today, since LUNA is among the top 10 crypto currencies in the world, we can say the project is a successful one.
LUNA is ranked 9th with a market cap of $28,222,597,125 and a circulating supply of 379,817,845.44 LUNA. In the last year, BTC attained a low of $28,893.62 and a high of $68,789.63.
Since LUNA is among the top ten coins on the chart, there's a lot of exchanges that trade LUNA pairs. For now, I'll list just 10 of those exchanges.
- Binance
- Huobi
- Coinbase
- Bitfinex
- Okex
- Kraken
- Kucoin
- FTX
- Bitmart
- Gate etc.
My analysis tell me there would be a bull run in the market and this is why I decided to make this intra-day trade on the spots market. Well, considering how long LUNA will rise, I really don't have an idea about that since the crypto currency markets are so volatile and unpredictable. Aside that, Terra provides a sustainable means of creating stable coins and also has a lot of DeFi operations on its blockchain. This makes its native token, LUNA, to have great potentials in the near future.
From my analysis chart above, I used the Ichimoku cloud and the Stochastic with some price action support and resistance lines.
The markets were already in an uptrend and since the cloud was still under the price action without a crossing of senkou span A and B this confirmed a bullish trend continuation.
Looking at the Stochastic, the indicator was in the oversold region and this simply means "a start of an upward trend". When I saw these signals, I placed a buy trade and fixed my take profit at the resistance level.
First, I made a buy trade at the market price on spot trading LUNA/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: $76.40 (below the resistance level)
Stop loss: $72.50
Here is the confirmation of my trade. If you look at the image on the right, you would notice that my trade filled on the take profit level meaning my analysis were correct.
I don't have plans at the moment to hold the LUNA token but as you can see I have already made my profits on this trade. I sold the assets on the take profit level.
Although, I must say, looking at the growth of the LUNA project, I would love to add the token to my portfolio.
Although, I don't see LUNA to provide a 10x opportunity in two year, the coin still has great potentials and is worth buying.
Stable coin and stable asset Creation: The terra blockchain has the capacity to create stable assets for any currency in the world. This makes it possible for users on the platform to trade what ever currencies they are willing to trade and aside that, it also grants users the opportunity to mint and buy pegged stocks of real life companies like apple and facebook. All these operations attract more users to the platform and the more the usage, the higher the value of LUNA will be.
Burning Mechanism: The UST stable coin is backed by LUNA. What I mean here is, for each UST minted, its equivalent in LUNA has to be burnt. Which means, the circulating supply of LUNA will be reduced and from the law of demand and supply, demand increases with reduction in supply. This will help increase the value of LUNA.
LUNA use-cases: LUNA is the official native token of the terra blockchain. This simply means, nothing can be done on the terra blockchain without having LUNA in your wallet to cover fees. LUNA is also used for on chain governance operations and staking. This makes LUNA important to all users on the terra platform.
LUNA is still a new project with high potentials, I suggest anyone with cash to spare to invest in the project. Today I made a trade with the LUNA/USDT pairs and made a profit, I so much thank the professors for teaching me all these great strategies.
CC: @abdu.navi03
Good day Prof.,
Please, I made a mistake with my tags on two of my posts and because of this, I missed out on the grading process. My apologies concerning that.
Please can you help me grade them
link1
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