DOTUSDTPERP Buy long | S6T2 - Team Trading Post for Team Frontline

Hello everyone, this is my second post for today's trading competition for this week. For today, I chose Polkadot. This is a very good blockchain project that is quite popular because of its uniqueness.

As usual, the questions for this post would be stated and answered accordingly. Let's go!

Polkadot is a multi-blockchain network. It is one of Ethereum's top rivals as it is scalable, interoperable and secure. Some people call it the ETH killer. It has four main components which make up the network; the relay chain (main blockchain), Parachains (parallel chains), Parathreads and Bridges.

Dr Gavin Wood, Robert Habermeier and Peter Czaban are the founders of Polkadot. Polkadot's relay chain is the primary chain. The Parachains are custom blockchains created by users with the Substrate framework. This allows the parachains to connect to the relay chain. The parachains are separate blockchains that have their own functionalities. The parachains connecting with the relay chain benefit security and interoperability between the other chains.

The splitting of the network into multiple blockchains allows transactions to be processed faster with sharding. This makes the blockchain very scaleable as transactions are performed simultaneously across all the chains. On Polkadot, there is no need to fork the blockchain for upgrades. The network can be upgraded easily without forking because of its flexibility.

The consensus mechanism used on the network is NPos (nominated proof-of-stake) and has nominators and validators. The security on the network is managed with the increase in staked tokens required to be a validator. This is to ensure good behaviour by the validators.

DOT is the native token of Polkadot. It has a value of $18.45 and a market cap of $18,223,783,323. It has a total supply of 1,103,303,471 DOT. It is ranked #12 in the list of cryptocurrencies.

DOT reached its all-time high of $55.00 four months ago. Its lowest price within the past 1 month and 3 months is $14.14. This was recorded just last week.

DOT can be found in many exchanges with different asset pairs. Examples of exchanges you can trade DOT are Binance, Huobi Global, KuCoin, Gate.io and Bybit.

Polkadot is a very efficient and scalable blockchain. It is called the ETH killer because it offers a better platform for the deployment of DApps because of its scalability, low transactional fees and efficiency. It is also interoperable with Ethereum.

It reached its lowest price since it hit its all-time high just last week. A good project like this isn't expected to stay down for long. Currently, it is at $18.45 which shows that it has gained support and is on a bull trend.

A blockchain expected to take over Ethereum is expected to rise above the price of Ethereum. I think Polkadot is just getting started and would continue rising.

The DOT asset I chose to trade was DOTUSDTPREP: an asset available on Binance futures.

This time I added the RSI in addition to the 20 period EMA on the chart. I marked the support and resistance levels in the chart and used the RSI to check whether the asset was overbought or oversold. After noticing it was overbought since it was above 50, I used the trendlines to identify a good entry point to buy as the price was expected to fall slightly.

I placed orders for a long position. After a few minutes, the price hit my TP and the position was triggered. The entry point was very sharp. I couldn't believe I had spotted sharp entry points continuously for some time now. The details of the trade can be found in the next section.

I trade with leverage which allows me to make quick profits with less capital with increased risk. The exchange I used for this trade was Binance.

My entry price was 18.375 USDT, TP was 18.807 and SL was 17.818.

After the position was triggered, I switched to the 1-minute timeframe to spot signals of reversals. This time I was quite hasty, I didn't try to take profits with the SL. I noticed the candle patterns like the shooting star which signalled a reversal. I quickly closed the position. Later on, the price hit my TP which was quite disappointing as the reversal was false.

I made a profit of 2.0188 which was higher than yesterday's profits and so it wasn't so bad.

I'd recommend others to buy DOT. It is among the top best alternatives to Ethereum and its adoption is increasing. I'd say buy now before it's too late. Its lowest within 3 months was just last week and so around this time isn't that bad to buy.

Polkadot also has a strong team and an advanced blockchain system. Its founder Dr Gavin Wood is a co-founder of Ethereum. This is information that should tell you they are focused on taking Ethereum's place.

Its price is also expected to rise above $60 before the end of the year and so buying now, you can hold till it reaches a higher price and sell-off.

Also, this recommendation isn't financial advice from an expert. My assumptions might be wrong but that's what I think. Crypto assets are highly volatile and risky products also, so I'd advise you to be careful when investing in them.

Kusama is a Polkadot project. It is a multi-blockchain network just like Polkadot. People call it the wild cousin of Polkadot. It was developed in 2019 by Dr Gavin Wood to serve as a testing platform for projects before they are launched on Polkadot.

Kasuma is well equipped to handle tests of projects, identify errors and provide solutions to the errors detected. After the project is successful, it is then launched on Polkadot with no flaws which makes the Polkadot network very clean and efficient.

Its native token KSM has a value of $139.11. It has reached an all-time high of $623.75 which is quite impressive.

For today's trade, I could have earned more profits if I wasn't hasty. All the same, it was because I focused on minimizing risk and maximizing profits. I gained more experience which is good. I hope the next trades would be better.