DOT/USDT - Steemit Crypto Academy | S6W1 | Team Trading Contest Post for Team-fredquantum-kouba Traders Team

Polkadot (DOT) – Fundamental Analysis

Polkadot is one of the top blockchain projects that is considered as a huge competitor to ethereum because of the solutions it provides. Founded by Dr. Gavin Wood, Robert Habermeier and Peter Czaban. Polkadot is a blockchain protocol with the purpose of connecting multiple different blockchains into a single network and also to build web 3.0 infrastructure. Polkadot utilizes the main chain which is referred to as the relay chain and individual blockchains that are referred to as parachains and parathread which are similar to the parachains on the polkadot network. On polkadot, the key elements which its focuses on are scalability, innovation and security. With these core elements, anyone can build cross-chain apps and deploy their own custom blockchain as parachain on the polkadot network and the parachain becomes interoperable with other polkadot parachains. Polkadot aims to solve a lot of problems in the blockchain world with its ground breaking technology.

Polkadot Mission

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Features and Benefits of Polkadot

• Scalability
• Interoperability
• Security
• User-driven network governance
• Forkless
• Future-proof
• Easy blockchain innovation

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The DOT Token

The DOT token is the native token of polkadot with a lot of utility and powers the polkadot ecosystem. Holders of the DOT token take part in the network governance. Also, DOT token can be staked for the polkadot network consensus. DOT token is also used for network fees. At the moment, the DOT token has a marketcap of $14,176,857,564 with the current coinmarketcap ranking of 13. DOT token has a circulating supply of 987,579,314.96 DOT and a total supply of 1,103,303,471 DOT.

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Exchanges to Buy and Sell DOT

Polkadot has grown to become one of the most popular blockchain and crytocurrency project and as such, the DOT token has gained popularity and is currently ranked top 15 on coinmarketcap platform. At the moment, DOT can be traded on a variety of the top crypto exchanges such as Binance, Kucoin, Huobi, Coinbase, Kraken, OKX, FTX and more exchanges with a number of top trading pairs.

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Polkadot social

As a very popular project, polkadot has gained a lot of followers across its social media channels, most especially on twitter with over 1 million twitter followers. Twitter is without a doubt one of the most popular social media platforms in the world at the moment with millions of users all over the world and also a very popular social media for crypto. With a growing twitter channel, polkadot continues to gain more and more eyeballs and adoption.

_{Polkadot twitter}

Polkadot (DOT) - Technical Analysis

Technical analysis is also part of my strategy when investing in any cryptocurrency asset. For this, I will be showcasing my technical analysis carried out on DOT/USDT before making my investment decision. To carryout the technical analysis, I made use of tradingview platform and indicators. The indicators used are the 20 TEMA and 70 TEMA and the RSI indicator.

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Looking at the DOT/USDT chart, we can see that the price is above the longer period TEMA line and the RSI value is in the oversold zone which is a good time to buy for long term trading which is my strategy.

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Looking at the chart on coingecko, we can see that DOT price is below its 7days high price of $20.11 and way below its all-time high price of $54.98. This is a very good time to buy DOT as polkadot has ticked all the boxes of a solid project with great potential to increase in value and proven to be one of the top cryptocurrencies.

For my DOT investment, I made use of Houbi exchange as one of the top crypto exchanges to purchase DOT token on the DOT/USDT pair. On the spot market, I purchased 21 USDT worth of DOT at an average buy price was at 17.21 USDT. While stoploss is great as a risk management strategy for trading, I prefer not to use stoploss in a market full of uncertainties when performing long term trading. This is because there is a strong possibility that the stoploss will trigger if there is a sudden drop in price. This will result in a loss. That is why I only invest in cryptocurrencies with long term potential and would utilize DCA strategy as my risk management strategy. DOT has shown that it has a strong fundamental to increase in value in the future.

Houbi exchange

My plan is to hold this coin for a longer time, until it hit my take profit target, however, due to what is going in the world right now and the whole political and economic negativity surrounding certain countries right now, the crypto market has been hit hard, resulting to a massive drop in price in a lot of cryptocurrency asset. There is a strong possibility that the market would experience a big dip and as such, I decided to sell my position at an average price of 14.33 USDT to reduce my losses and prepare to buy back if the market continues to drop in price. Total value got after sell was 17.44 USDT, resulting in a loss of 3.56 USDT from my 21 USDT capital.

I am really optimistic about Polkadot DOT as it is a great project with a great team continuously building solutions in the polkadot ecosystem. In my opinion, this is a very good cryptocurrency to buy as it is way below its all time high, buying now would mean a potential 2x from its current price if the price of DOT hits its previous all time high in the near future.