Steemit Pakistan Crypto Courses Season 1 - Homework Post For @huzaifanaveed1 || 20% Beneficiary to @steemit-pak

Assalam-O-Alaikum everyone.

Welcome to this post. Hopefully, all of you will be good and happy with the grace and blessings of Allah Almighty. I am here to present the homework post for Steemit Pakistan Crypto professor @huzaifanaveed1. I have read the whole of the professor's lecture post and he really used very simple wording to make his post understandable for everyone. So, I am going to represent my homework to him.

So. let's start the task without any wastage of time.

_{Image created from Canva}

Following are the answers to the questions that are asked by the professor as the assignment of the week.

(01)

What are the different trends found in the market. Show example with screenshots attached. (Use tradingview.com for the charts)

As we all know that the market of cryptocurrencies is so volatile and variable. The prices of the cryptos do not remain at a constant stand but move up and down variably. It is difficult for beginners to expect whether the market will go up or goes down. However, there are some technical aspects that can help us to predict the trend of the market. The chart of the crypto markets could be helpful in this regard to predict the price of a particular asset. There are two types of crypto markets depending upon the movement of the crypto charts.

1. Trending Market:

The first type of crypto market is the trending market. As referred to by the name, the trending market is a market of cryptos in which an asset shows a particular trend. The trend of the market could be upward or downward depending upon the market volume of the respective asset.

2. Ranging Market:

The second type of crypto market is called a Ranging Market. It is a market in which the price of an asset shows a ranging behavior. It does not increase or decrease constantly instead it moves within a range and does not show a one-side flow.

_{Screenshot taken from TradingView}

There are two trends that a trending market can show. These trends are as follows.

Bullish (Uptrend) Market

Whenever we see that the market is going in the upward direction and the price of the asset is going to the peak then this behavior of the trending market is called a Bullish Market. When a market follows the Bullish trend then the buy order opens and the investors started to buy their assets to earn a considerable profit. The following screenshot shows the Bullish Market behavior.

_{Screenshot taken from TradingView}

Bearish (Downtrend) Market

Another type of trending market is the Bearish one. The Bearish market trend means the market is flowing in a downward direction. It means that the price of the asset is kept on decreasing and it is considered as the time where the sellers are in a strong position in the market. Following is the screenshot in this regard.

_{Screenshot taken from TradingView}

So, these are some trends that a trending market may follow.

(02)

Briefly explain when is the best time to buy an asset and when should you sell the asset so that you don't get at a loss in a trending market (screenshots needed)

As we all know that the market of cryptocurrencies is so volatile that it even becomes very difficult for the traders to mention their entry and existing positions. So, the technical analysis of the crypto charts may prove helpful in this regard. According to the technical analysis of the chart, the following are the best positions for the buyers and sellers accordingly.

Buy Order

The Accumulation phase or the re-accumulation phase could be the best position for the traders to invest in the market. As the prices of the assets are not increasing or decreasing to large extents in these phases. The price of the assets remains moderate and this could be a better position for the buyers to open their buy order as the Accumulation and Re-accumulation phases are followed by the Uptrend (Bullish). So, if the one buys assets in the accumulation phase then he would become strong enough to sell his assets after the uptrend so that he could get better profit. The buying position is mentioned in the screenshot below.

_{Screenshot taken from TradingView}

Sell Order

The Distribution phase is the best time for the traders to sell their assets as the prices of the assets are high enough to get a better profit in the distribution phase. The distribution phase follows the uptrend so the prices are high and this thing is a sign of selling the assets. Moreover, the distribution phase is followed by the Bearish (Downtrend) so if one does not sell his assets at the distribution phase then he might be endangered by the downtrend of the crypto market. The selling position is shown in the screenshot below.

_{Screenshot taken from TradingView}

So mentioned above the best positions for buy and sell the assets respectively.

(03)

Show and explain the different phases of the Market on Crypto-assets except for BTC, ETH, ADA, and BNB. (Screenshot needed)

As I have told before that the market of cryptocurrencies is so volatile that it is very difficult for traders to predict the trend of the market. There are some phases that are involved in the movement of prices of the crypto assets. These phases help the traders to earn better profit from the volatility of the market.

There is a term 'Whales' that is used in the crypto markets. Whales mean the high-level investors that have invested so much in a particular asset that their one move can change the movement of the price. The price of the assets increase when the whales start buying the assets and the price decreases when the whales start selling their huge stock of the particular asset.

Here I am using TRX/USDT pair to demonstrate these phases. Let's have a look at the screenshot below.

_{Screenshot taken from TradingView}

The above screenshot describes the mentioned points of different phases involved in the movement of the market. The explanation about these phases is given below.

• Accumulation Phase:

The accumulation phase is the first phase of the crypto market. It is the phase in which the whales do not show extraordinary activity. The selling and buying ratio of the whales is just moderate. This phase gives a great opportunity to the investors to buy the asset to assure their future profit.

• Uptrend Phase:

The uptrend phase is the second phase in the cryptos market. It is also known as Bullish Trend. It is the condition when the price of the assets shows a great upward movement and increases to a great extent. This phase occurs when the whale traders invest in the market. The volume of the market of the asset increases and hence the price reaches to peak.

• Distribution Phase:

The third phase of the crypto market is the distribution phase. This phase occurs after the Uptrend phase and the prices of the assets, after a great increase, remain moderate during this phase. The whales of the market start extracting out their profit during the distribution phase so the price ranges to a small extent. Some beginner traders thought that the market will again go up from there but they do not know that another phase named as Downtrend phase is waiting to follow this trend.

• Downtrend Phase:

This is the last phase of the crypto market. This phase occurs so quickly that the investors must have to keep a constant eye over the market behavior of the asset in which they have invested. During this phase, the price of the assets falls down to the ground level as the whales of the market start selling their assets very quickly. So, one must have to sell his assets before the occurrence of this phase, to get remarkable profit.

So, these are some phases that are involved in the chart of the volatile market of cryptocurrencies.

(04)

Demonstrate how will you use the phases of the market to your advantage. Where will you buy the asset and where will you take profits? (Screenshot needed)

After the brief discussion about the phases that are involved in the market, we are going to discuss the points where one can get better profit from his investment by considering the phases that are involved in the market.

_{Screenshot taken from TradingView}

Buying of the assets:

The Accumulation phase is the best phase to buy the assets. The reason is that at this phase there is no huge investment of any whale. Rather there are no whale investors during this phase so investors can enter the market at this phase and wait for the entry of the whales. So that the price of the assets rises after the entry of the whale traders. So, this phase is a better position for the investor to enter the market.

But if someone missed out on the chance to enter the market during the Accumulation Phase then he can enter the market at the Re-Accumulation phase which may occur between the accumulation and distribution phase.

Selling the assets:

The price of the assets increases to a great extent after the uptrend phase and the Distribution phase started from there. The Distribution phase is the best time for the investors to sell their assets. After the accumulation phase, the whales enter the market, and the price of the assets increases to a great extent. At the distribution phase, the whales started extracting out their profits, and the price of the assets again become moderate.

So, the Distribution phase is the best phase to sell the assets as if someone missed out on the chance to sell his assets at this phase then he would have to wait for a large time to gain another chance to get profit.

Conclusions

The market of cryptocurrencies is so volatile that it is very difficult to predict the trend of the market. There are some phases that might be helpful to forecast the price of the assets. The Accumulation phase and the Distribution phase are the best phases to buy ad sell the assets respectively.

It is better for beginner traders to study the phases of the market to earn a good profit. If not, then he is in danger of losing his investing money.

So, that's all about today's lecture post. Hopefully, all of you will like it.

Thanks a lot to all of you for stopping by...

Mention: @huzaifanaveed1 (Steemit Pakistan Crypto Professor)

Regards: @steemdoctor1 (Crypto Student)

Good Luck and Take Care