CAKE/USDT Sell -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 CAKE/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 CAKE
As much as CAKE sounds sweet, it is the native token of pancakeswap. Pancakeswap is a DeFi protocol just like Justswap and Sushiswap. For those who don’t know what a DeFi protocol is, DeFi is simply Decentralized finance. Here, all financial operations like coin exchange, loans and lending operations, yield farming etc all take place on a blockchain. Pancakeswap is one of the best due to the fact that it was built on a cheaper and much faster network called the BSC (Binance Smart Chain).
Pancakeswap’s GUI (Graphical User Interface) has a pretty entertaining architecture. It was designed by a group of anonymous software developers and launch in September 2020. It also uses an Automatic Market Marker which helps the platform provide liquidity for its exchange and also give back rewards to its liquidity providers.
The pancakeswap protocol is a successful platform with a TVL of 12 billion dollars worth of assets locked. This means the platform is performing excellently.
CAKE is ranked 16th with a market cap of $1,847,024,114 and a circulating supply of 272,878,704.31BTC. It’s current price is $6.77 and if we look at the above image, in the last year, MATIC has attained a high of $44.18 and a low of $5.62. I believe CAKE suffered such a decreased in value due to the recent dip.
Exchanges are platforms were cryptocurrencies can be traded on. Here are the exchanges which trade CAKE.
- Binance
- Pancakeswap
- Kucoin
- MXC.com
- Bkex etc.
While looking at the charts, I saw some indicators that the price would fall and I saw this as an opportunity to sell my holdings for the token. It's just an intra-day sell trade.
Aside that, CAKE has great use cases on the pancakeswap platform and I plan to buy again at the support level. Any one planning on making crypto currency investments can still hodl long term.
From my analysis chart above, I used the Stochastic with some price action support and resistance lines.
For this chart, the Stochastic indicator was at the overbought area and this signifies a bearish trend reversal. After I saw this indicator, I sold my holdings of the token and placed a buy trade at the support level
First, I made a sell trade at the market price on spot trading CAKE/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: $6.69 (above the support level)
Stop loss: $6.85
The trade took a while but in the end, I made profits, it got filled at the take profit level. The image above is a confirmation of the profits on my trade
I would recommend everyone to buy CAKE long term for so many reasons.
Faster and Cheaper Transactions: There are a lot of people into DeFi projects at the moment because of its ability to generate high APY (Annual Percentage Yield) for its liquidity providers. Since Pancakeswap was built on the Binance Smart Chain, this makes its users enjoy faster and cheaper transactions. Hereby increasing the amount of users investing their assets on the platform and also increase the value of its native token, Cake.
Deflationary Measures: Cake block rewards have been reduced from about 40 cake to 14.5 cake. This will help reduce the amount of CAKE tokens getting into circulation. Burn mechanisms have been put in place on CAKE tokens used to purchase lottery tickets.
Today, I made a sell trade on CAKE/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