Crypto Academy Season 3 | Intermediate course by @captain36 for @allbert –week 3: DCA to create a Portfolio

Hello everyone, I’m highly delighted to take part of this lecture of professor @allbert in this week 3 of season 3 of Crypto academy. The lecture was very detailed and understandable so I decided to take part of this task.

1-Select two Crypto, perform fundamental analysis, and based on your fundamental analysis explain why you chose them. Exclude BTC, ETH, RUNE. Develop and justify your answer. Be original.

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For this discussion I’ll choose BNB and ADA.

Binance coin(BNB)

Binance coin is the cryptocurrency that is issued by Binance exchange. It uses the BNB symbol in trading. The BNB is now a native coin of the Binance chain. It was initially run on the Ethereum blockchain with ERC 20 standard .

BNB was created as a utility token for trading fees with discounts. The uses were expanded later as time goes on. It was later used in other functions like paying transaction fees on the Binance chain, online services, entertainment and financial services.
I took a look at the Binance white paper to know the details. The white paper is shown below.

Screenshot:source

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I also explored coinmarketcap to know the rank, the price and number of currencies in the market.
At the time of writing this task, the Binance coin was priced at $305.66 and was ranked #4 with a market cap of $46,903,001,510.88 as indicated below.

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ADA

The Ada coin is the internal cryptocurrency of a public blockchain called Cardano. The cardano blockchain is an open source and decentralized platform, with its consensus achieved using proof of stake. This cardano was founded in 2015.
Cardano can be used to send funds. It can also be used to store a value.

There was news that a betting was opened for people to bet on whether cardano will release smart contract functionality by the 1st of October.

Screenshot: source

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I also explored coinmarketcap to check the price, rank and market cap of cardano. As at the time of writing this assignment the price was at $1.18 and was ranked #5. The market cap is $37,806,569,853.90. These are all shown in the pictures below.

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Why did I choose BNB and ADA?

One of the reasons why I chose these two coins is that they are some of the top currencies in terms of market cap and popular trading assets with high liquidity.

Also Binance coin is one of the best utility tokens. This BNB can go beyond the Binance ecosystem.
The Binance coin can also be used for different payment methods such as travel, online purchases, crypto card bills among others.

I chose cardano because it uses proof of stake to confirm transactions on the blockchain. This means that it is very fast and doesn’t have high gas fees as compared to the transactions on other blockchains.

2- Through your verified Exchange account (screenshot needed), make a real purchase of one of the cryptocurrencies selected in the first assignment and explain the process. The minimum investment must be 5USD (mandatory) and must present screenshots of the verified account and the whole operation.

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I will open Binance exchange

Then show my funds. I have 14.81USDT and I will use all of them to buy BNB coin. Meaning I’m using 100% of my funds to buy BNB coin.

Then I will go to spot section to show that my account is verified.

Now in our search bar we type BNB and chose BNB/USDT pair.

BNB/USDT pair is already in the market so we scroll down to the buy and sell options. Then chose buy.

Then I scroll down to enter the amount I want to use to buy the BNB. I this case I want to use all my funds so I just click on 100% and all the funds will be entered.
Then I click on buy and the order will be created.

Now we can verify that the transaction has been made successfully since I have 0.050018 BNB which is equivalent to $14.88

3- Finally, make a simulated exercise, using the DCA method to perform the purchase of two assets and present charts showing the data of days in which the operation was performed, price of purchases, average price, sell point, percentage of profit or loss. (include screenshots)

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Exercise 1

Following the DCA method, I will make a purchase of the Solana(SOL) currency, dividing it into 4 parts, that is, into 4 purchases at the same time for 4 different days.

for this exercise I have used the 4 hour chart.

On the 5th of July, I bought solana for 34.00USDT.

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On the second day of my purchase which was 8th July, I was able to purchase SOL at 36.00USDT

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12th July was my third of purchase. On that day I got SOL for 32.00USDT. That was at a cool price as compared to the previous two purchases.

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The last day of my purchase which was the fourth day was on the 15th of July. On that day I purchased SOL for 30.00USDT. That was the lowest I purchased SOL in this exercise.

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Upon carrying out this exercise for four different days, the total price of SOLANA = (34+36+32+30)USDT
So the total = 134USDT.
To find the average price of SOL per day we divide it by the four days.
134/4= 33.5USDT.
Therefore the average price of Solana in this exercise carried is 33.5USDT.

Exercise 2

Following the DCA method, I will make a purchase of the ADA currency, dividing it into 3 parts, that is, in 3 purchases at the same time for 3 days.

for this exercise I have used the 4 hour chart.

For the first day which was 5th July I purchased ADA for 1.43750USDT as shown in the chart below.

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For the second day of my purchase, that was 8th July, I bought Ada for 1.3750USDT as indicated below.

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And finally for my third purchase, I bought Ada on the
15th of July for 1.2500USDT.

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Upon carrying out this exercise for three different days, the total price of ADA= (1.4375+1.375+1.250)USDT
So the total = 4.0625USDT.
To find the average price of ADA per day we divide it by the three days.
4.0625/3= 1.35416USDT.
Therefore the average price of ADA in this exercise carried is 1.35416USDT.

In this class we learned about fundamental analysis, we did analysis of two cryptocurrencies which are BNB and ADA. These two coins are ranked among the top 10 cryptocurrencies in the crypto market.

We also learned on how to buy a coin on Binance using a verified account.
Finally we did a purchase simulation using the DCA method of SOLANA and ADA cryptocurrencies . This method will be very helpful for beginners in the world of crypto who have little knowledge on the cryptocurrencies. This DCA method can help beginners reduce lost.

Thank you professor @allbert for your detailed lecture.