Basic information about Binnance Exchange
Binnance was introduced to crypto world by Changbang zhao in 2017 in order to serve the Crypto family to do a trading. As far as trading types are concern there are spot trading where we buy cryptocurrency and sell when get reasonable profit. While in case of future trading the concept is somewhat different where we can do leverage trading up to 100x and Binnance will give you extra money for trading. While third type of trading that we can do on binnance is margin trading.
In binnance exchange their are large number of trading pairs almost above 450 different pair with almost 150 trading coin and token. Binnance also has its own dollar called BUSD. Binnance is also highly trusted exchange where we can trade with fair of frauds. So due to above reasons and also my more awareness about Binnance I will do trade on binnance exchange.
Basic information and history of xlm(Stellar)
Stellar is basically used for payment and currencies and it an open source network. It was co founded in 2014 by jed McCaleb who previously founded Ripple and the network was launched in 2015. That's even before Ethereum! Stellar allows its user to send dollars, Euros,pesos, yens and potentially any other currency to anyone with a stellar address, anywhere in the world with particularly zero fees and in just a few seconds.
Even though there are platform now a days that offers such transaction in thee traditional financial system, stellar does it in blockchain style, decentralized and uncensored. This fait currency came to Blockchain by tokenization. If a stellar user wants to send dollars to another user they don't send dollars but dollar token. These are tokens that live on the stellar Blockchain, have the same price as the dollar and are backed 1:1 by actual dollars in a bank account dedicated to this purpose.So when a user wants to cash out to actual fiat dollar there's always the necessary reserve to get their money.
Stellar was bulit with the exact purpose in mind, it takes the concept to a whole new level. The network doesn't privilege any particular currency but instead can be used to tokenize any currency in the world.So on stellar network you can have dollar token, Euro token, yen tokens and many more can also be seen.
Stellar achieve their goal through third party companies called Anchors. Anchor take on the responsibility of bridging the gap between the stellar Blockchain and the traditional financial system, either by issuing tokens or working as fiat on/off ramps,or both, and as in return the Stellar has to pay some fee. In anchor user can exchange any kind of token that he has hold himself and he can do this all in Stellar peer to peer network. Stellar has a decentralized exchange, or DEX, bulit right into the network order book and everything
As I open the coin market cap of xlm I saw the following information as shown below in diagram.
Here we can see the price of xlm, volume, total supply, ranking and also diluted market cap etc.
Xlm is present in different exchanges we can choose any of them to do trade depending upon our interest. This includes Binnance Exchange, Huobi global exchange, kucoin, coinbase etc.
This keep on changing price of xlm can be seen in above screenshot.
These are some social media projects and ots followers such as in Twitter account and also Reddit etc can be seen
Why I am optimistic about Xlm coin
The reason why I am so optimistic about the xlm coin is that due to recent partnership between stellar and MoneyGram which will make it possible to convert cash into crypto and vice versa in 200 countries with out using any bank. This feature allows stellar to make great progress in the market because before that this exchange of fiat and crypto was possible so due to this feature market cap of xlm will also increase and also its price will also increase.
Ukraine tap stellar also going to develop the digital currency infrastructure, including CBDC framework and it will bulit its own central bank digital currency. Stellar is also the new home of USDC when the integration goes live and on stellar network amount of USDC is keep on increasing also due to MoneyGram partnership.
For example when you are working in USA and want to send money to home supposed in other countries such as Pakistan or india you may send but here you have to pay 5 to 10 percent fee. But when you using xlm network there is no fee for such transaction. In the market cap xlm is also at 34 number which is also good position so due to following above reason I am optimistic about xlm coin.
Technical analysis by different types of indicator
Technical analysis are the backbone of the crypto trading market. Without technical analysis we are just entering the Crypto market to blow away our money. These technical analysis that includes different indicator and also strategies help us indicates different trends in the market. One thing should kept in mind indicator did not confirmed the actual activity in the market it just indicate the trend on the base of previous market trends. So here I will use cross over strategy to determine the market with three kinds of indicator.
Exponential Moving Average
It is a type of moving average indicator which gives indication about the market trends. Its difference from simple moving average indicator is that it gives more importance to recent price changes while simple moving average indicator on the other hand gives equal contribution to all the observations. Here I will use cross over strategy by using two Exponential Moving Average indicator. One indicator is of 9 days average which is short days moving average indicator and also faster while other is 21 days moving average indicator which is long days and also slow indicator. We can indicate market trends by following ways
- If the 9 days exponential moving average which is of short days average is above the 21 days average indicator than its time to enter the market as buy long.
- If long days average indicator (21days) is above the short days (9days) indicator than its time to go for sell short in this case.
Parabolic SAR
This is another kind of indicator which can be used to indicate the trends in crypto trading market. In parabolic SAR bullish and bearish trends can be identified on the basis of dots that are present above and below the candles of price chart. This is almost very easy and understandable indicator for me because I mostly used this indicator along with other indicator.
- If the price movement line is above and dots are below the price candle than it is a signal that market will make a progress and there is bullish trend in the market. Here we should enter the market as buy long
- If dots are above the candle or line chart than it is the indication of market to go down here we should go for sell short position.
Triple exponential moving average
As I prefer to do scalp trading so that is why I prefer TEMA over other average indicator because it gives more importance to recent price changes in the market. It is represented by a signal line that contain three moving averages including two exponential moving average .
- If the TEMA line is above the price movement line than we should go for sell short because here next will be the bearish trend
- if the TEMA line is below the price chart that indicates that price will go up and there is bullish trend and we should go for buy long.
Real future trade on binnance
After that the most important part of the lectures that is real trading on any exchange. As I choose binnance so I will trade on binnance.
- At first as I entered the market I applied cross over strategy by using Two EMA of different days average on price chart. As we can see that more days average that is of 21 days is above the short days moving average indicator which means that we should enter the market as sell short.
- After that I applied the Parabolic SAR and you can see that dots of parabolic SAR are above the price movement trend which means that we should go for sell short.
- In the last I applied TEMA indicator because it is useful for scalp trading and take into account each and every changes in the market. As you can see that TEMA is above the price movement line which also Indicate to enter as sell short.
So after seeing all this I go to future wallet of Binnance Exchange and did my trade.
My plan about this trade.and recommendation to others
I did scalp trading in my future trading wallet and I did not keep it for long time . I justade a trade and when I got reasonable profit I w sell off my trade. Here in this case I also did the same. When I realized that now its best time to take profit with the help of indicator I sell off my trade and got profit.
As far as recommendation to other the most important recommendation for all is that first they should learn about different indicator and also cross over strategy and other strategies that would help them to to gain good profit. I am also not a professional trader I just do the trade as per learn in lectures so I will recommend others also to study technical analysis and than go for trading and it they want hold it for long time than they should go for spot trading where the risk os less. While in future wallet you need to set ypur profit and when you have gotten your profit exit your trade as per indicators.
Additional information about xlm
Some more information about the xlm can be seen from its Twitter account as well as Instagram account
Some information can be obtained from the white paper
Conclusion
So in todays lecture I choose xlm/usdt pair for this trading week work. At first I give little information about the binnance exchange where I did my trade than I give brief information and history of xlm coin. After that I give some important feature of stellar coin and the reason why I choose this to trade. After that the most important part of this lecture that includes technical analysis by using different indicator.
I explained three different indicator and also EMA indicator with cross over strategy. After seeing all this I go for sell short trade and when I got reasonable profit I exit my trade. In the last I give some information about stellar coin from Twitter and Instagram account and also white paper of xlm that gives you more information about it.
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