In this post I will send a homework assignment to professor @allbert regarding "DCA to create a Portfolio". Alright, let's just answer the question.
1. Select two Crypto, perform fundamental analysis, and based on your fundamental analysis explain why you chose them.
I will choose two coins to do a fundamental analysis on both of them, the two coins I choose are Stellar Lumens (XLM) and Tron (TRX).
Stellar Lumens (XLM)
Stellar lumens is the digital currency in the stellar network. Each network has its own crypto type, the stellar network is an open source network type, and each user must store lumens in his wallet as a means of payment. XLM only uses a very cheap fee every time we make a transaction. The information I got said that the stellar lumens fee is 100 stroops, then multiplied by the number of operations, 100 stroops is about 0.00001 XLM.
In addition, the stellar network can also be used to build other coins. Singer and entrepreneur from the United States Akon also uses the stellar network to create his coin called Akoin, but I don't know if the project is already running or not.
Stellar Lumens also has a keyword that has characterized blockchain technology, namely decentralization. The Stellar network runs on a decentralized server network backed by an international consortium of individuals and entities. Servers strongly support distributed ledgers that track network data and transactions.
Stellar lumens uses the stellar consensus protocol (SCP) algorithm to verify transactions, thanks to this algorithm the stellar lumens network is able to process transactions faster and more efficiently than other proof-of-work blockchains. In addition, another advantage possessed by the stellar network is that it is more decentralized because it has anchors features.
Stellar lumens was founded by Jed McCaleb and his team, McCaleb himself was a Co-Founder at ripple (XRP) but resigned in 2014 on the grounds that he wanted a blockchain project that could help unbanked communities in developing countries, then he founded Stellar Lumens. Jed McCaleb wants to make XLM a cross-border payment solution without intermediaries, stellar lumens promises very fast transaction settlement, which is only 5 seconds.
Stellar Lumens also has teams scattered throughout the world, there is diversity but still with the same goal and working hand in hand to realize the vision and mission of Stellar Lumens. There are about 50 members living in different countries, each with their own field and expertise.
After I read the whitepaper of the stellar e project, I can understand their plans, vision, and mission in building the project. The team designed XLM as a token that can reach all levels of society in the world with ease and also a small fee to transact with other users anywhere and anytime. There are several points that I got after reading the whitepaper, including:
- Very priority Security and privacy, although this is not coin privacy
- A new model for consensus called federated Byzantine agreement (FBA)
- Advantages of Stellar Lumens over other coins
- New model security protocol
- Very fast transaction
- Very cheap fees
- And much more
The roadmap will be very useful for investors to see the performance of the team meeting what they have planned or not, and also informing about future plans they are preparing.
And we can see in the XLM 2021 roadmap that they want to see their platform and coins get a growth in the number of entities on the Stellar network, also to continue to promote Stellar so that more people know about their platform.
And as we see today, hardly anyone doesn't know stellar lumens, this is a testament to the team's excellent performance in setting up and executing their vision to continue to bring growth to their platform.
Price of Stellar Lumens (XLM) :-
When I took the screenshot, the price for the XLM coin was traded in the range of $0.230964, and for the highest price in the last year it was in the range of $0.8.Market capitalization of Stellar Lumens (XLM) :-
The stellar lumens (XLM) market cap is $5,335,152,543, and the fully diluted market cap is $11,577,681,922.
- Volume(24 hr) :-
Stellar lumens (XLM) trading volume in the last 24 hours was $383,157,204.
Rank :-
The stellar lumens (XLM) coin is ranked 20th by market cap at the time of screenshot.Circulating supply :-
The current circulating supply is 23.29b, about 47% of the tokens to be produced.
- Total Supply :-
Total supply is 50.001.803.008
- Fully decentralized (not centralized)
- Support for various crypto assets and currencies
- Transactions are very fast even almost free of charge
- Has an anti-spam feature to prevent DDoS attacks
- Must have a minimum balance viz, 20 Lumens to make sure the account is genuine, and the 'fad' can't or won't participate in the network
Stellar Lumens (XLM) has its own network type which is more robust, fast and fully decentralized.
The shipping cost is almost nothing.
The security offered is very good and satisfying.
The shipping process is very fast.
The founding team is good and synergized in carrying out their respective duties to realize their vision and mission.
Two years after Stellar Lumens (XLM) Tron was discovered by a non-profit organization headed by Justin Sun and has an in-house team that is very dedicated to the progress and sustainability of Tron. At first Tron ran on the Ethereum blockchain but then Tron launched its own network on May 31 2018, then slowly started to move to their own network to be precise from June 21-25 2018.
The new Tron network offers transaction speed, the resulting speed is around 2,000 TPS, this is very far from the speed of the ethereum network. The new network from Tron can also make it easier for developers who want to create their own decentralized applications using the Tron network because it is built using Java, in contrast to Ethereum because the ETH network uses the more specialized Solidity programming language.
The Tron token was pioneered by Justin Sun as CEO, then he formed a team from various elements to support the sustainability of the project and also become a more useful coin and trusted by many investors and creators. We can find profiles of the founder of Tron on the internet because he is also one of the richest people in the world.
Justin Sun has a very impressive profile and curriculum vitae and it's not just Tron that was built because he was previously Ripple's representative in China. Justin Sun Founded Peiwo live streaming application which has more than 10 million users, then this application is fully integrated with Tron as payment for creators.
Justin Sun is also a protégé of Alibaba founder, Jack Ma. With such a flashy profile it's hard for us not to believe him and his projects. Apart from Sun, we can also see very flashy profiles behind the scenes of Tron, including Gang Wu who is the CEO of Bixin, there is also Jihan Wu CEO of Bitmain, and many more.
Unlike the Stellar Lumens whitepaper, the Tron whitepaper is more complete and explains things in great detail. We can find everything we are looking for in the Tron whitepaper, the table of contents explains everything about the project including the profile of the founder of Tron.
This is certainly a plus for investors who want to invest in Tron coins because they can get all the information they need in the whitepaper. Tron's vision and history are also contained in it which further strengthens our belief in this Project.
It's hard to find a loophole to criticize because almost everything is made to perfection, the Tron team showed their seriousness in building this project and are very dedicated to making it happen. This shows us the seriousness of the project and makes us without hesitation to invest in the TRX coin.
Once again the Tron team shows us their seriousness towards the Tron project by presenting the six stages of the Roadmap that is planned until 2027, this is a very good long-term project and the seriousness of the team to realize all the roadmaps that have been planned.
The first roadmap planned by Tron is "Exodus" in 2018, this stage will focus on data release. And they have done it very well.
The second roadmap is "Odyssey", the stage will last longer than "Exodus" and is expected to take 18 months. "Odyssey" will focus on empowering content, and this stage has also been successful.
The third roadmap is "Great Voyage", at this stage Tron is trying to launch their own complete blackchain, called Main Net. And the stages are in progress, let's wait for the results. The next three stages are Apollo, Star Trek and Eternity, which will last until 2027.
Price of Tron (TRX) :-
When I took the screenshot, the price for the Tron coin was traded in the range of $0.05572.Market capitalization of Tron (TRX) :-
The Tron (TRX) market cap is $3,989,419,044, and the fully diluted market cap is $5,616,501,253.
- Volume(24 hr) :-
Tron (TRX) trading volume in the last 24 hours was $663,686,917.
Rank :-
The Tron (TRX) coin is ranked 25th by market cap at the time of screenshot.Circulating supply :-
The current circulating supply is 71.66B TRX.Total Supply :-
Total supply is 100,850,743,812
Tron Cryptocurrency brings a very different perspective and purpose to the market.
There is no transaction fee for TRX, or it may be on the Exchange but only 1 TRX.
Network Tron is capable of supporting 2000 transactions every second.
TRX also provides an opportunity for those holding or betting to participate in the super representative selection process.
The Tron platform also has the ability to reward content creators for their work.
The project is explained clearly and transparently
Runs on its own network with guaranteed security and ease of use
The transaction process is very fast and only costs very little
The team is very committed and dedicated to bringing tron into a more credible and useful coin
A very promising roadmap and has been carried out according to plan
Justin Sun as CEO is very promising project success because he is a smart and rich young man
Security
2. Real purchase of the Cryptocurrencies I choose using a verified account and the process.
I used a verified houbi account to make a Tron (TRX) purchase, here is the process.
1. Open the Huobi app or the site
2. Then click on the market that is next to the main menu (for applications)
3. In the spot market look for TRX/USDT if you use USDT to make a purchase, then click on the TRX/USDT.
4. Click buy on the order book
5. Fill in the amount you want to buy and the price
6. Wait until the purchase is fulfilled
7. Done, now we go to the wallet to check it
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)
DCA is one method when investing, DCA method is one method that teaches us to invest evenly. This method is widely used by investors to minimize losses. For more details, you can read the post from professor @allbert.
I have $40 to spend on 4 different days from July 13th to 16th, I spend $10 per day, the breakdown is as follows:
| Date | Price | Amount XLM | money spent |
|---|---|---|---|
| 13 july | $0.247217 | 40.45 | $10 |
| 14 july | $0.240722 | 41.5 | $10 |
| 15 july | $0.236392 | 42.3 | $10 |
| 16 july | $0.224214 | 44.7 | $10 |
| Total | amount | 172.9 |
Then today I want to sell all my coins for some reason, and the current price is $0.231448 and when multiplied by 172.9 the result is $40. This means I have almost no losses.
And if I spend at once my $40 on July 13, then i will get is 162 XLM, 162 XLM multiplied by the current price then the result is $37, then I suffer a loss of $3. This is of course the benefits of DCA are felt and make us safe.
I invested $40 from July 13-16 in TRX coins, I spend $10 per day. Then I bought a TRX using the DCA method.
| Date | Price | Amount TRX | money spent |
|---|---|---|---|
| 13 july | $0.060 | 167 | $10 |
| 14 july | $0.058 | 173 | $10 |
| 15 july | $0.058 | 173 | $10 |
| 16 july | $0.056 | 178.9 | $10 |
| Total | Amount | 691.9 TRX |
Today is July 17th I want to sell all my TRX coins, and the current price is $0.056. then I will earn $38.8 from the sale of all my TRX coins, and this means I lose $1.2.
But if I buy TRX all at once on July 13 at a price of $ 0.060 then the result is 666 TRX bought by investing $40. Then I sold it today at a price of $ 0.056, then the result is $37.37 by selling 666 TRX and this means I lost $2.7.
My losses are greater by not using the DCA method, but if I use the DCA method my losses become less.
In conclusion, using the DCA method is proven to be able to minimize losses significantly, and this method is very useful for investors.
Hello, @daiky69 Thank you for participating in Steemit Crypto Academy season 3 week 3.
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