Steemit Crypto Academy | Season 3: Week 5 || Death cross and golden cross, how to use Binance P2P trade by @captain36

Hi everyone, I’m very happy to take part of this lecture of professor @yousafharoonkhan in the week 5 of season 3 of the steemit crypto academy. This lecture was very detailed and I will try my hands on the given task

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Question no 1:
Define Death Cross and Golden Cross in your own words. And what is the significance of DC and GC in trade? And what effect do these two have on the market?(in your own words.)

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Death Cross

When the 50-day moving average crosses the 200-day moving average, death cross pattern is said to have occurred. This movement happens from top to bottom of the chart. This even helps us realize that there have been a change in the trend of the market.

This death cross is an indication that a bullish trend is over and a bear market is about to kick in. At this point, due to selling pressure the price direction becomes downward.

When the market is in a bull state, the 50-day moving average is always above the 200-day moving average. Immediately the 50-day moving average crosses the 200-day moving average, the direction of the trend changes. The 50-day moving average crosses below the 200-day moving average and this shows that a bear trend has started.

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Golden Cross

Golden cross is the direct opposite of the death cross. It indicates that there is an uptrend in the chart. This golden cross happens when a 50-day moving average crosses and goes above the 200-day moving average. This golden cross points out where the price of an asset is about to rise for the long term. The presence of golden cross is an indication that the prices of assets are rising and it means that more buyers are entering the market at that particular time.

Question no 2:
Explain the points given below.
How many days moving average is taken to see Death cross and Golden cross in market for better result and why?
How to see death cross and golden cross on the chart.
Explain Death cross and Golden cross on the chart, (screenshot necessary)

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As discussed in the earlier question, before a death cross and golden cross can occur, there must be an intersection between the long term moving average and the short term moving average.

It is widely accepted that the short term moving average is 50 days whilst the long term moving average is 200 days. Other people take different times but 50 days and 200 days are the commonly used and generally accepted times.

The time zone of death cross and golden cross is not fixed and they can both happen at different times. For so many years now the death cross and golden cross have been approved by most traders and they use it most often.

In the process of reading these charts, the the signals of the long frame are more clearer than the signals of the shorter frame.

How to see death cross and golden cross on the chart.

The tradingview site is where I will take my charts from. I will choose the BTC/USDT chart for this task.

I used 1 day time frame. I then clicked on “Fx” to set the moving averages.

I entered “Ma” in the search bar and chose moving average as shown in the screenshot above.

I made adjustments by clicking the settings icon that is marked in the above screenshot.

For the short term moving average, I chose 50 days as indicated above.

I choose 200 days for the long-term moving average.

Finally the chart shows a 50-day moving average and a 200-day moving average.
The death cross is formed when the 50-day moving average crosses the 200-day moving average from above. The golden cross on the other hand is formed when the 50-day moving average crosses the 200-day moving average from the top.

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Explain Death cross and Golden cross on the chart

Death Cross

As indicated in the diagram above, the 50-day moving average has crossed the 200-day moving average down. This shows that the death cross scenario has happened. It indicates that the direction of the trend is changing from a bullish trend to a bearish trend.

The chart shows that after the death cross, Bitcoin prices are going down. Buyers begin to get the power over sellers at this point. The 200-day moving average starts to serve as a resistance.

The 50-day moving average now remains in the lower part whilst the 200-day moving average climbs to the top half .

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Golden Cross

As seen in the chart above, the 50-day moving average crosses the 200-day moving average from the button up. This is a proof that the golden cross scenario has happened.
There’s a change in direction of the trend from bearish market to a bullish market. The 50-day moving average will stay at the top part whilst the 200-day moving average will still be at the down part. At this point the 200-day moving average will start serving as a support.

When the golden cross happens, traders begin to buy more assets and the price continues to rise as a result.

Question no 3
What is Binance P2P and how to use it?
How to transfer cryptocurrency to p2p wallet?
How to sell cryptocurrency in local currency via p2p (any country or coin)(screenshot necessary to verify account

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Binance P2P

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It’s very important we understand what Binance is at the first place. Binance is simply a platform for the exchange of crypto. On this Binance platform, users are allowed to buy and sell crypto assets with other cryptocurrencies or with Fiat. There are so many cryptocurrency markets on the Binance platform. As we speak now, Binance records the highest volume in the trade market. The features on the Binance platform includes spot trade, pool, P2P, futures among others.

P2P is the short form of peer to peer exchange. This P2P connects two traders directly and it serves as a facilitator for the exchange. It allows users to buy crypto with Fiat with no transaction fees. You can also sell crypto for Fiat with no transaction fees.

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How to use Binance P2P

I already have the application for the Binance exchange so I just open it and login.

As seen in the screenshot above my account is verified.

As seen above, after I logged in I click on “wallet” and then choose “P2P”.

After choosing the P2P option, there are several cryptocurrencies and various options there. These options are buy, sell and transfer options as indicated in the screenshot above.

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How to transfer cryptocurrency to p2p wallet?

My P2P wallet is empty with no balance. So I will transfer BTC in my spot wallet to my P2P wallet. This can be done using the transfer method.

After clicking on “transfer”, I set the amount and click on confirm as shown above.

Now I have transferred 0.00020703 BTC into my P2P wallet as shown above.

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How to sell cryptocurrency in local currency via p2p (any country or coin)(screenshot necessary to verify account

I went back to the homepage and chose P2P trading as shown above.

I clicked "Sell" as I will be selling on the P2P platform. Then I marked “GHS” as the currency. I preferred momo as a payment method.

I identified a user who wanted to buy BTC. Even though his offer was logical to me, I just did it for the purpose of this task to show my understanding.

I have determined the amount to sell BTC. The GHS equivalent of 0.00020703BTC is 50.94 GHS. I chose “MOMO” as the payment method. After this process, I will click on the sell BTC option.

The person to whom I sold the BTC to has to pay me within 30 minutes, otherwise the transaction will be cancelled. We have the option to chat with the buyer.

If I had the funds to complete this transaction the buyer would’ve sent me through momo within 30 minutes so I will confirm the release of BTC for him. The BTC will be transferred to the buyer’s account. And that same amount of BTC will be deducted from my P2P wallet.

Question 4:
What are the things to keep in mind during P2P trade
and describe its four advantages and disadvantages.

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There many things we have take note of when doing a transaction in P2P trade. Some of these things include;

• Payment method: One of the major requirements of the P2P trading is the payment method. Without this payment method you can complete a P2P transaction.

• No transaction fees: There are no transaction fees involved in P2P trade. This is a very unique feature of the P2P trade and it makes it more attractive.

• Limits: Before we make a transaction, we have to consider the limits set by the buyers and sellers. All sellers and buyers in P2P have their minimum and maximum limits and must follow them to ensure a successful transaction.

• chat: Buyers and sellers can chart to each other on the platform. This makes trading very easy and more convenient for both sellers and buyers.

• Ensure that you receive payment from the buyer before you release the coin you’re selling.

• Verified user: Make sure that the buyer you’re dealing with has a verified account. This reduces the possibility of fraud.

• Buyers and sellers must all confirm after the transaction to ensure that everything is complete.

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Advantages of P2P trade

• One of the major advantages of the P2P trade is that there are no transaction fees involved. You can buy for Fiat or sell Fiat without any charges involved. That makes it very attractive to users.

• There is no specific time for trading in P2P. You can trade at any time of your choice depending of the availability of your funds.

• P2P is very reliable. It is very difficult for you to be scammed. In times of any disagreement, there is an appointed judge that will settle the dispute and hand it over to the right person.

• P2P ensures more intensive use of cryptocurrencies. There are restrictions on some cryptocurrencies in some countries. P2P can be used to manoeuvre through these restrictions.

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Disadvantages of P2P trade

• In P2P trade, prices of cryptocurrencies are very high for buyers and very low for sellers. But in exchanges it is relatively high for buyers as compared to P2P trade.

• The P2P requires a lot of experience. If you’re dealing with an inexperienced buyer or seller, it’ll make the transaction complicated.

• The P2P trade doesn’t have a wide range of cryptocurrencies. Before you can perform a transaction, you must exchange to one of the listed cryptocurrencies before you can perform a transaction.

• The transaction will fail if the person doesn’t approve on time. This P2P is very time sensitive and it can make things very complex.

Conclusion

In this lecture we have learnt that death cross and golden cross are very good ways of predicting the prices of assets. They help us a lot in technical analysis. However they can mislead us sometimes so we have to be careful with how we use them.

we also learnt that P2P trade can also be used to sell for Fiat or buy for Fiat using other cryptocurrencies. There are no transaction fees on the P2P trade transactions.

Thank you professor @yousafharoonkhan for this detailed lecture.