(REPOST) DOT/USDT CRYPTOACADEMY S6T4 TEAM TRADING CONTEST POST FOR REMINANE
Hello, guys, this is my second post for the week on the trading contest and its a pleasure once more ad it has always been. In today's trading contest, I'll talk about the coin, polkadot. I'll give your some information about the coin, its functions, operations as well as to make some few analysis and a live trade and in the end you'll get to know how profitable it is to invest in this coin at this time.
The name and introduction of the project token, which exchanges it can be traded on, project / technical information of the coin/ team background, etc.
Why you are optimistic about this token today, and how long do you u wish it can rise.
How to analyze the token? (This can technical analysis and trading strategies learned from professor's courses) - This section is very important.
Your plan to hold it for a long time or when to sell.
Do you recommend everyone to buy this token? Give reasons for your answer.
Any other thing you might want to share about this coin/token.
Intro; A Brief on Polkadot
So what is polkadot? From the research I've made on this coin, I can simply call it the blockchain of blockchains. Yes, you saw that right. Polkadot is an open sourced blockchain that looks to promote interoperability between different blockchains especially with ones that it wasn't possible with before now ( eg Ethereum and Bitcoin).
So in essence, what is tries to do is to allow the ease of connectivity between two or more blockchains where not only tokens can be transferred but also other contents too. It also provides security as well as speed of operations between these blockchains which are all added benefits for the polkadot.
The system was developed in the year 2020 and its developers include Ethereum co creator Gavin Wood. This coin has sometimes been called the Ethereum killer. It operates on a proof of stake protocol where nodes have to stake some considerable amount of tokens in order to validate the next block and reap the rewards too.
Dot is the native token of this blockchain and this is what's used to do the staking required on the blockchain. This token serves as the governance token that allows users to have a say on the blockchain after they must have staked a few tokens. The Dot token can be bought and sold on several exchanges including , Binance, coin base, etc.
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Source
One interesting thing about the open sourced feature of this blockchain chain is that it allows much of the load to be taken off the main blockchain and processed on "parachains" that are built from the main blockchain. Much more like what Ethereum is trying to do with the Eth 2.0 now. These parachains can be a separate blockchain entirely but with a backbone/link to the polkadot blockchain that helps process lots of information at a fast rate, some of these chains may even include dapps too.
My Recommendations for this coin
First off, the fact that it has an open sourced system show that it has plans, big plans for scalability.
Then its also faster and processes lots of info per second, on essence, it can process up to 1,000 transactions per second which is really fast when compared to the big guns of the crypto world like Bitcoin( 7 transactions per second and Ethereum( 30 transactions per second). Lastly is the security of the platform. It also goes a long way to ensure that the various nodes are are reliable as possible especially with the staking feature.
I would personally recommend this coin as a long term investment as it stands now as per my analysis made on the trading view platform. The coin has been in an overall uptrend for some time now. As for the short term traders and scalpers, well this is certainly not the best time for a trade. Judging from the analysis on the chart, the Bollinger bands showed that the Dot market is in a range and accumulating right now with no clear movement as to the next direction of the market. Its best advised to be patient and wait for a break or clear movement.
I also intend to hold the token for a long time as i hope to reap from the long term rewards of the token.
Analysis and Real time trade
Well, for this section, I performed my analysis on the trading view platform and made the actual trade on the Binance platform while making use of the futures trading feature.
From my analysis of the coin on trading view platform, I noticed a general up trend on the platform which i did well to mark with a trend line and then there was another area of concentration where the market formed a support and this region was marked also.
Looking at the indicator on screen, the RSI indicator, it was above the 50 mark which recently acted as a support for the median line too.
All these indications went on to show that the market was still in an uptrend regardless of the sideways movement which was also shown by the moving average line.
Exit strategies were also set in place too. Look closely and observe that the stop loss was set just below the support lines while the take profits was set at a ratio of 2:1.
I went over to the trading view platform to make a trade which was executed at market price. I made use of the 10x leverage.
Soon i was in profits with the trade which showed that my analysis was in line with what the market had to offer at the time.
My transaction history
conclusion
Despite the fact that the market was ranging, there was still room for a good quick smash and grab trade on this one. In the end, i see this coin as one for the long term investments.