Today's lesson covers a very important topic "Cryptocurrency Investment Tools". Thank you Professor @reminiscence01 for letting us know about Cryptocurrency Investment Tools through this lesson. I learned many unknown things. I hope the lesson will be helpful for everyone.
1- a) Explain CoinGecko and why it is a good cryptocurrency investment tool.
b) Explore CoinGecko and explain at least 5 unique features of the platform (Take a screenshot of the page).
CoinGecko
CoinGecko is a website where cryptocurrency information was kept beautifully. Which gives opposition to the traders for a good analysis of a cryptocurrency. Before investing in a coin, you have to research it very well, then it is possible to make a good profit. The CoinGecko website is very useful for doing research with different coins.
CoinGecko has cryptocurrency coins sorted by ranking, price, 24h change, 24h volume, and chart. The coins can be sorted based on ranking, price, 24h change, 24h volume, and chart very easily. It is convenient to see how much the pine of any coin has increased or the lotus in 24h. This information is very useful for investing in Coin. There is no need to search for coins individually as there are many coins listed here, so time is saved.
The website has 8799 coins and 487 exchanges listed. Also, when any new coin comes into the market, it is listed here. CoinGecko has provided an opportunity to analyze many coins on a website. This website is benefiting more than 10 million visitors per month which is a good thing.
Because of the above reasons, it is a good cryptocurrency investment tool and preferred by traders.
Exploring CoinGecko with its 5 unique features
CoinGecko has many features. Of these, I will discuss 5 unique features with you. Let's get started:
1- Coin category
Coin category feature is very useful. There are more than 10,000 coins in the cryptocurrency. These include various types of coins such as Stablecoins, Defi, Exchange-based Tokens, etc. These are very nicely divided into categories according to the coin category section. This makes it easier to find out which coins are in a particular category.
2- Recently Added Coins
This feature is very important for crypto traders. They should know when a coin is being added. In this way, traders can also analyze the new coins. A coin called Super Heavy Booster 4 was added 4 hours ago as we can see in the screenshot below.
3- Exchanges
There are three categories of Exchanges. Category 3 is Spot, DEX, and Derivatives. The list of exchanges can be easily extracted from three categories. In the screenshot below we can see Binance is at the top from the Spot category. This exchange feature of CoinGecko is very useful. Because in order to trade, we have to do a lot of research on the category of exchange.
4- Compare Coins
Compare coins is another great feature. In this section, traders can easily compare between two coins. Here side by side comparison can be seen all such as Price, Market Cap, Trading Volume 24h high and low, etc. In the screenshot below I have compared Bitcoin and Ethereum coins.
5- Portfolio
Portfolio feature is a very useful feature for new traders. You can create your own virtual portfolio. Below is a screenshot of my virtual portfolio. Here the only coins can be added as desired below. Besides, it can be bought virtually, not only that, after buying, it can be observed in real-time whether it is profit or loss. In this way, new traders can learn trading.
2- a) Give a brief explanation of Tradingview platform.
b) Explain the steps involved in adding indicators on Tradingview chart. You can add any indicator of your choice except moving average. (Screenshots required)
c) With relevant screenshots, illustrate how to modify the indicator you have added to your chart.
Tradingview Platform
Tradingview platform is a social media network that is the most used platform by traders. Traders do technical analysis in the Tradingview platform besides this they can also use the build-in indicators on this platform which makes the way easy for technical analysis. Indeed it is a great technical analysis platform.
Traders can easily read charts on the platform there is also a feature though this traders can contact each other they also can share their charts with other traders. This public library feature is great for a group of traders. Because in a group of traders sharing their charts with others is very essential.
The steps involved in adding indicators on Tradingview chart
I added Ichimoku Cloud in BTC/USDT pair. The steps involved in adding indicators on Tradingview chart are described below with screenshots:
- First, visit https://www.tradingview.com/ on this website. You will see the following interface. Click Chart as marked on the screenshot.
- BTC/USDT pair will open by default. Then click Indicators to add an indicator.
- As you already know I will add the Ichimoku Cloud indicator to the chart that's why I search for Ichimoku. Then I click Ichimoku Cloud.
- In the screenshot below, look I successfully added Ichimoku Cloud to BTC/USDT pair. You may see the five lines present in the Ichimoku Cloud indicator.
By following the above steps you can also add the Ichimoku Cloud indicator to your charts.
Modification to Ichimoku Cloud the indicator in Tradingview platform
Modifications in an indicator are common. Because traders want to play with the indicator so that it can be used properly. Below I tried to describe the modification of the Ichimoku Cloud indicator. Let's get started:
- First click this Setting icon marked on the screenshot.
- You will see these three options Inputs, Style, and Visibility. Here you may choose any option for modification. From the Style section you may turn off or on any line.
- If you want to change the color of a line then simply click the color, this color box will appear. Then you can choose the color you like.
- From the Inputs section you can change the length of the lines. Sometimes it is necessary to change the length of the lines for better results, then this section will be helpful.
By following the above procedures modifications can be done in the Ichimoku Cloud indicator.
3- a) In your own words, explain cryptocurrency Portfolio and Watchlist.
b) Explain the need for Portfolio management.
c) 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).
Cryptocurrency Portfolio and Watchlist
Cryptocurrency portfolio is a technique through which traders can make more profit. If you can maintain the portfolio properly, the amount of loss can be reduced. To make a good Cryptocurrency Portfolio, you have to make it with several cryptocurrencies. If you just invest in a coin, the whole part can be lost. So the trader creates a Cryptocurrency Portfolio with a few coins to invest in and invests in them. If you trade in this way, you will lose 2/3 of the coins, but you will make up for the loss from the profit of the rest of the coins.
Watchlist is a feature that allows you to list your favorite coins. There are currently over 10,000 cryptocurrencies in the world, so it is not possible to invest in all coins. Moreover, there is no possibility of giving a good profit from all the coins, so a watchlist is made by researching which coins can make a good profit.
The need for Portfolio management
Portfolio management is a very important issue. Because a good portfolio can bring good profit. The main goal of trading in cryptocurrency is to make a profit. But to do that you have to do portfolio management very nicely.
If portfolio management is done well, it is possible to avoid more losses. Cryptocurrency has a lot of fluctuation so there can be any loss or profit at any time. Portfolio management should be done very well to avoid more losses. Otherwise, it can face a big loss at any time.
The 5 Cryptocurrencies added to My Watchlist
1- Ethereum (ETH)
Ethereum coin is currently in 2nd rank. I chose this coin because the utility of Ethereum blockchain is very good. The Ethereum blockchain can also be used for a variety of purposes. I believe that the utility of Ethereum blockchain will give many advantages to the coin in the future. So I put it on my watchlist.
2- Cardano (ADA)
Cardano coin has practical uses and is the fastest growing cryptocurrency. The Market Capitalization of Cardano is also high $ 44,806,695,647 by the time I am writing this post. Cardano is a serious project and listed in regulated exchanges. It is a unique third generation cryptocurrency. For these reasons I choose Cardano in my watchlist.
3- Bitcoin (BTC)
Bitcoin is the worlds top and first cryptocurrency. It is more reliable than other cryptocurrencies. The potential of Bitcoin is massive. It is believed that Bitcoin will be the future one day. Majority of the people use this coin. It is possible to make a great profit from Bitcoin.
4- Binance Coin (BNB)
Binance Coin (BNB) is the worlds top exchange site Binance's coin. BNB coin is becoming popular day by day. The future of this coin is very bright, it is the top exchange site's native token. Now BNB is the top utility tokens among other cryptocurrencies. It is believed that the value and market capitalization of BNB will be higher than Ethereum and Bitcoin in the future.
5- PancakeSwap (CAKE)
PancakeSwap exchange's native token is CAKE. The CAKE coin is becoming popular day by day. By CAKE coin stacking passive income can be generated which is a good thing of this coin. Investors are attracted by this coin and investing in it. The value of this coin also increased.
Conclusion
We need to know the proper use of cryptocurrency investment tools. Before investing in cryptocurrency, you must analyze and then invest. CoinGeco is an up-to-date and good tool for technical analysis. There is a lot of cryptocurrency information in one place, which will save our analysis time. Through Tradingview, technical analysis can be done and other traders can be contacted. By adding an indicator, a coin can be researched very well in Tradingview.
Hello @ellipsebd , I’m glad you participated in the 6th Week of the Beginner’s class at the Steemit Crypto Academy. Your grades in this task are as follows:
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