.png)
The Project
Binance Coin
Binance is an exchange launched by Changpeng Zhao in July 2017 now currently the biggest cryptocurrency exchange on earth. Binance you can say is one of the forerunners in the establishment of decentralized finance.
Binance established an ecosystem of utilities for its users. The inclusion of the Binance Academy, Binance Chain, Binance Smart Chain, Trust Wallet and other projects have been major milestones celebrated by all crypto lovers. Binance Coin is one of the results of these moves.
When introduced, the Binance coin was an ERC-20 token on the Ethereum blockchain. Due to their growing hunger for innovation, the company built its own blockchain on the Tendermint byzantine-fault-tolerant (BFT) consensus mechanism, and BNB was moved there.
Tokenomics
The maximum supply is 200,000,000 BNB coins, and over 168 million are currently in circulation as time of writing.
Binance burns the Binance Coin supply every quarter, with the goal ofhalving the supply to 100,000,000 BNB. These burns have been recorded to be as high as $600 million.
The finance whitepaper tells us that exactly half of the maximum supply of BNB as allocated for the ICO. The ICO was held in July 2017 and raised $15 million. BNB was at $0.10 during the ICO. You do not need a magician to tell you the returns on this investment if you took it. 40% of the total supply was shared with the founding members and team. The last 10% went to the angel investors backing the project.
Analysis
For my analysis today I'm using chart patterns, EMA 48 and SMA 96 crossover, and the RSI as my tools for technical analysis.
From the chart above we can notice how the RSI went below 30 to signal an over sell
BUY CONFIRMATION 1
Next price formed an imperfect double bottom
BUY CONFIRMATION 2
The EMA 48 (red) crosses the SMA 96 (green)
BUY COMFIRMATION 3
All signals align, so I open the trade.
Trade
I entered first with 50% portfolio, then 80% next on my futures account.
Time being against me for today and price nearing a resistance on the 4-hour chart, I manually closed all trades. with over 6 dollars in profit.
Trade Details
| PARAMETER | VALUES |
|---|---|
| Entries | 350.220 / 340.200 |
| Take profit | 355.1 |
| Stoploss | 340.4 |
| risk to reward | 1:2.3 |
| Closing price | 340.440-350.450 |
| profit/loss | $6+ |
Conclusion
Trading the BNB was a wild game because it is really volatile, the strategy was a good one and if I held out just a bit longer I would have hit take profit. I look forward to trading tomorrow and being more patient with it.