REPOST-Trading Competition - Crypto Academy / S6T3 - Homework post for pelon53.
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 are you optimistic about this token today, and how long do you 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 is 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.
INTRODUCTION:
Good day, @pelon5 and every member of this great community. Welcome to my entry post for the season 6 week 3 trading competition of the steemit crypto academy.
I will like to base my today's trading and technical analysis on algorand because it's been one of my favorite cryptocurrency tokens.
What is algorand?
Algorand is an open, (decentralized) blockchain with a unique Pure Proof-of-Stake which is permissionless, algorand is a native token also known as ALGO. Algorand blockchain serves as both a cryptocurrency and a means of propagating new blocks.
Algorand was developed by Silvio Micali, an Italian-born professor and also the winner of the 2012 Turing award for his work that helped him establish cryptography as a developer. Algorand was Launched as a Dutch Auction in June 2019, before what it's known for today "Algorand ". This token was inspired by the Bitcoin revolution. Algorand got the same opportunities to remove friction in the exchange of value.
Algorand’s main objective was to solve the problem of scalability, Blockchain Trilemma of accounting for security, and decentralization. algorand has some benefits which will be listed below.
Benefits of algorand
Security: On Algorand blockchain, distribution of block validators is widely done across the network, making it difficult for hackers to have their way into users' accounts/wallets. since the security is solid users will be rest assured to invest in the token which will cause a general boost on the blockchain.
Speed: Transactions on algorand blockchain are very fast, It takes on average 4.5 seconds to send Algo to any wallet without any intermediary which will interfere during transactions.
Cost: Algorand transaction fees cost only a little percentage per transaction. Compared to some other blockchains like Ethereum, where the gas fee is so high per transaction, Algorand transaction fees are consistently very low.
Which exchanges it can be traded
Algorand can be traded on some major exchanges, it has been listed on some major exchanges, which are adding value to the ecosystem of the token. Here are some of the exchanges.
Project / Technical information of the coin/ team background
Algorand’s blockchain deals with Pure Proof-of-Stake Also called (PPoS) which is a protocol that validates new blocks in which users’ have direct on influence how much they stake. With PPoS, every ALGO coin can be selected for staking randomly.
The minimum algorand needed to stake is 1 ALGO. For example, Ethereum has its all-time high around $4,000 while ALGO has its all-time high above $3. Algorand is more accessible because they have lower minimum requirements to stake the token.
To stake an ALGO, the user needs to declare his/her availability then send tokens to Algorand’s wallet. There are various ways to receive ALGO rewards for holding, apart from participating in the formal staking process, and Algo staking reward is easy to compound together.
looking at the features surrounding the algorand blockchain. it is showing a green light that it's going to go up 300% and beyond this year, here is some feature that can trigger the boost. Though currently, algorand is not up to $1.
- One of the most Germain features of Algorand has is that it has a user-friendly environment to attract Investors to the blockchain ecosystem, it is a public blockchain that enables people to explore it, due to these amazing features algorand is now the world's first carbon-negative blockchain. Transactions done on algorand blockchain per second will grow from 1,000 to 46,000 with all these good features and this will make it easy for algorand to surpass Solana which is delivering a 1753 TPS. Algorand is an ideal platform that supports Defi's development.
- According to coinmarketcap Algorand is currently trading at $1.40 with a market cap of over $8 billion. many crypto investors question $ALGOs tokenomics. Let’s take a look at it and understand it.
Algorand is about 2 years old now and it has a schedule for releasing its tokens for 10 years in which it will release its total supply of 5.49 billion $ALGO tokens. recently, 6.5 billion of the algorand token are already in circulation. However, over 3 billion $ALGO is locked up in an online consensus stake.
October 1st, 2020, the Algorand ecosystem moved to a full decentralized governing system which enables algorand holders to earn rewards for participating in Algorand’s decision. when all these mechanisms start coming into play will enjoy a price boost.
- Algorand has over $502 million transactions per day, just because the fee is affordable for users, Algorand’s fees cost $0.001 per transaction. Also, Algorand has a purely proof of stake decentralized consensus, which makes it conducive for developing Defi protocols.
Algorand blockchain is putting big efforts in investing in the next generation of Defi infrastructure that includes some Stablecoins like USDT, USDC, Defi music-NFT lending like Opolous, and NFT Marketplace like ZestBloom.
In this section, I will be using one of the trading strategies thought by our professors in the steemit crypto academy to analyze my entry. I will be doing my analysis on ALGO/USDT using [tradingview]( www. tradingview) for my analysis and taking my entry at my Binance exchange.
I opened the H1 timeframe on ALGO/USDT and I noticed a trending market, which was an uptrend. Immediately I dream of my trending using a technical tool called Fibonacci retracement.
Adding the Fibonacci retracement tool to my chart made me see the chart in another dimension, which help my technical analysis.
I noticed that price retraced to level 0.5 multiple times, which was giving me a signal for a buy entry. I went further to 15min time Frame to check for a confirmation of entry and I saw it was safe for me to enter the trade.
I went to my Binance exchange to take my buy order and confirm my entry leveraging on a moderate risk-reward ratio of 2:1.
After some time I went back to check the trade and I saw that it was in profit. The image below shows the outcome of the trade on the chart.
Yes!
I will like to holdALGO for a long time because of the substantial features embedded in the blockchain, algorand attract investors, organizations, and well-known companies in the world to invest in them. algorand has a user-friendly environment that gives users to have transactions any time any day. They have standard security for their users so that hackers will not have their way into their privacy. one of the most interesting things about algorand is that it is built on a decentralized blockchain. where hundreds of businesses are so much attracted to work with algorand platforms, in which some of them are financial services, fintech, institutions, and defi.
some other famous projects that are using Algorand’s technology:
- Drone race league: this is a game you play and u earn algorand through playing the game with all these features am rest assured that algorand ecosystem is going to expand on a very large scale where all holders and investors will enjoy maximum profit and I with like to be part of those people earn from algorand that time.
Do you recommend everyone to buy this token? Give reasons for your answer. Yes!
I will always recommend algorand to investors to invest in because, because it has an accommodating ecosystem where we have different financial organizations partnering with them, this alone is enough of a token to gain popularity and one thing as coin need is popularity in which bitcoin is we known all over the world.
Nowadays, so many proofs of stake blockchains like Solana, Cardano, Avalanche, and Polkadot are developing a large ecosystem and they have a very good technical feature.
However, what makes the algorand platform different from other blockchains because a very good governing structure with a good organizing committee, this is why tech companies worldwide are interested in putting Algorand’s software to develop their businesses. b
By so doing more value is added to the blockchain and it becomes more influential. miners of other blockchains compete with one another to validate blocks in their blockchain which cost them a lot. but algorand blockchain selects blocks randomly to validate them which required low cost and lower power required, resulting in a significant environmental impact.
CONCLUSION
I was able to write about some history, the background of the algorand token, how it came to existence and some features of algorand blockchain, and the growth so far on the blockchain. I was about to do my technical analysis on trading view, then I proceed to my Binance exchange to place my real trade using the futures trading option.
@steemcurator01 @steemcurator02
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