Crypto Academy / Season 3 / Week 6 – Homework Post for [professor @reminiscence01] Cryptocurrency Investment Tools

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Am gladdened once again for yet another opportunity of this wonderful edition by the cryptoacademy. From the lecture offered by Professor @reminiscence01, reading through this lecture series have given me a better insight on cryptocurrency investment tools and its usage. To this, I will be writing based on the task given by the Professor.

Explain CoinGecko and why it is a good cryptocurrency investment tool*

CoinGecko is a cryptocurrency platform that was developed by TM Lee and Bobby Ong as the cofounder in 2014. This is a platform which gives a reliable source of cryptocurrency data. It is the world’s largest cryptocurrency platform that traders rely on when it comes to providing trading information on diverse cryptocurrency data and exchanges in the world. CoinGecko does not provide wallet services or exchange services but only acts as a platform where information about different cryptocurrency assets can be gotten.

CoinGecko is a platform where the fundamental analysis of different digital assets can be viewed. It is a good investment tool because it helps traders or investors to have deeper knowledge about a particular asset before investing in it, it gives investors information about the market statistics of the asset and to what extent of growth the community behind the project is.

Explore CoinGecko and explain at least 5 features of the platform (Take a screenshot of the page)

First, to explore the CoinGecko platform, visit the website: https://www.coingecko.com/

Portfolio

The portfolio tab is one of the features of CoinGecko platform. The portfolio is where cryptocurrency assets can be added for monitoring for a better and optimal potential investment as shown in the screenshot below

Exchanges

This is another feature on the CoinGecko platform. The exchanges shows two different tabs which are the “Spot Derivatives” and the “DEX”
If you click on the “DEX”, it displays the top decentralized exchange platforms as shown in the screenshot below. Showing 24h volume, number of coins, number of pairs, visits, most traded pair and the market share by volume of each of the exchanges from the top to the bottom.

And also, if you click on the DeFi Coins tab, it displays the top DeFi Coins of the exchange platforms with their prices and rankings based on their market capitalization as shown in the screenshot below

NFT

NFT i.e Non Fungible Tokens is another feature found on the CoinGecko platform. It displays two options which are “Coins” and “NFT Spotlight”. When you click on the NFT Spotlight, it displays spotlight of artworks created with its unique characteristics as shown in the screenshot below

And if you click on the Coins, it displays the top Non Fungible Token coins by their market capitalization from top to bottom. These are digital assets with unique characteristics. They might be artworks, collectibles, game items, etc. as shown in the screenshot below

Products

Products is another feature found on the CoinGecko platform. This tab displays the store and premium subscription mobile App and the developers in the CoinGecko platform. If you click on the “Crypto API”, it displays the different API on the platform. This APIs are what developers uses to improve their existing services and applications as well as building other advanced crypto market applications. Some of the apps are shown on the screenshot below

Coins

At the top corner of the loading page, we can see one of the features of CoinGecko platform. When you click on the drop down menu, it displays the categories of the different assets in the market based on its different market capitalization as shown in the screenshot below

Give a brief explanation of Tradingview platform

Tradingview platform is an online web based trading platform where analysis tools and charts are displayed to help traders or investors in spotting a potential opportunity to invest.

Tradingview showcases the different price charts of tokens and also analyses their price patterns for an optimal investment spot.
It comprises of different drawing tools and sets of tools for market analysis for technical analysis of different assets. It also contains different community built indicators and candlestick patterns which also aids in the analysis of price charts for a trader or investor to know the possible and right time to make an investment on an asset of his/her choice.

Explain the steps involved in adding indicators on Tradingview chart. You can add any indicator of your choice except moving average. (Screenshots required)

For this task, I will be adding the MACD indicator to my chart.

First, you have to visit: https://www.tradingview.com/

Then I clicked on the “Menu” bar at the top left corner of the opening page, this took me to a new page where I clicked on the “Chart” option

After clicking on the chart option, it redirected me to the charting interface where I now clicked on the “indicator” icon at the top corner of the page.

After clicking the indicator icon, a pop out window showed where I then searched for the MACD indicator and it displayed, then I clicked on it and it was added to the chart as shown below.

With relevant screenshots, illustrate how to modify the indicator you have added to your chart

The following steps were taken to modify the MACD indicator I added to the chart as shown below:

First, to modify the MACD indicator on the chart, I clicked on the indicator bar that I just selected and then clicked on the “setting” icon as shown below

After clicking on the setting icon, a pop out window appeared where I had to click on the “Input” option to change some parameters, and also on the “Style” option and then lastly on the “Visibility” option to change the MACD indicator parameters as shown below

In your own words, explain cryptocurrency Portfolio and Watchlist

Cryptocurrency Portfolio

Just as the name implies, cryptocurrency portfolio is the collection of crypto assets that is held by an investor or a trader. This collection of assets helps the trader or investor to be able to monitor his/her assets so as to know when ripe it is to gain from the assets.

Cryptocurrency Watchlist

Just as the name implies, Cryptocurrency Watchlist is avenue whereby a list of crypto assets chosen by a trader or investor can be monitored and analyzed for a potential opportunity to invest.

How does this work? Since there are much crypto assets in the crypto market, it will be difficult for a trader to monitor all of them at once; so, for the trader to be able to monitor few of these asset which he or she wants to invest in, the trader chooses the asset that he or she thinks will have a better yield in future (based on his analysis and decisions) and then adds it to the Watchlist for a daily monitor of the progress of the assets added so as to know when right it will be to add them also into his or her crypto portfolio to maximize profit.

Explain the need for Portfolio management

In every investment, there is always an aim. A trader or investor does not just invest for loss but aims at gaining from the investment. So as a trader, there is need for a better portfolio management to meet his or her aim.

We know how fluctuating crypto assets in the market are, there might be a swift high or low in just a minute or thereabout. So to be able to avert the risk of incurring losses in a volatile market, a trader needs to manage his/her collection of assets well by monitoring and also analyzing the assets daily to know the trends of the assets and the right time for investment so as to make profit. If assets are not managed properly, the trader tends to incur losses but if managed properly, the trader gains.

Select 5 cryptocurrency assets you wish to add to your Watchlist and explain your reason for selecting each of them. (Show screenshot of your Watchlist. It can be any platform).

Bitcoin

I will select Bitcoin to add to my watchlist because it is the mother of all other coins, it is highly demanded with a high market cap and it's popularity. If it is in my watchlist, it narrows down the risk of me loosing my funds to other less popular and low demanding coins.

Ethereum

I will also select Ethereum to add to my watchlist because it is a major cryptocurrency well known for smart contracts and also widely and highly demanded with a high market cap. Based on the new development and projects built on it's blockchain, this will give it a better stand to a gradual increase in it's price value.

Steem

Steem is another coin I will select to add to my watchlist because it is a passive income coin. It is a coin that can be earned via holding and staking of it. The rewards earned can at a point help in covering up accidental losses incurred from other cryptocurrencies thus managing crypto investment risk. At the recent, Steem is booming and technically, it has dropped down in some percentages as compared to 2 months ago, so this will be a convenient time to buy and invest in it aiming at an increase in the price value in the near future.

Binance (BNB)

BNB is another coin I will love to my add to my watchlist because it is a multipurpose coin which can be swapped for other coins, it growth level is great with a utility value. It has less transaction fees and as well it value will likely increase in the near future. it is also a widely and highly demanded coins with a high market cap.

Ripple (XRP)

This is another cryptocurrency that I will love to add to my watchlist because it is one of the major cryptocurrency that is highly ranked in the market cap with a solid project. Based on it's technical analysis, it has dropped some percentage from the recent peak and it is at a great place to invest before it makes a breakout.

In Conclusion, investing in cryptocurrency is profitable but it all depends on the type of investment tool used and how you apply it, this is a necessity for every trader or investor to follow to make profit. Also, being able to understand the workings of managing your portfolio will help a trader to be able to manage some investment risk.

It was quite an interesting and wonderful lecture presented by Prof. @reminiscence01. Thanks for reading through my post.