Good day steemians, happy weekend to everyone, trust you're all doing pretty good. Today I will be making my final post on the week 4 trading contest and I will be discussing extensively on the crypto project POLKADOT,also I will be trading the crypto pair DOT/USDT.
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IMAGE DESIGNED ON POSTERMYWALL.COM
Polkadot is a cryptocurrency that serves as decentralized protocol and one that can be bought or sold via exchanges. Polkadot connects independent blockchains and it allows data to be passed across compatible networks in a trustless way through the polkadot relay chain. Polkadot serves two primary functions which are ; it serves as a governance token and secondly, users can use it to stake within the network.
It is worthy to note that this project was launched in 2020 and it's among the latest crypto project in the crypto space. It was founded by Gavin Wood in 2016 who also happens to be a co-founder of Ethereum together with Peter Czaban and Robert Habermeier who are both co-founders. Furthermore, the polkadot network can create three types of block chain which are the Relay chain where transactions are finalized, the parachain which confirms that transaction are accurate and the Bridges will allow the polkadot network to interact with other crypto blockchains.
The native coin of this polkadot network is DOT Which plays a key role in maintaining the operations within the polkadot network. Holders who own and stake DOT have the ability to vote on network upgrades and also, polkadot have a reward system of giving users newly minted DOT base on the number of tokens they are staking. Let's take a look at the market statistics of this DOT coin on the coinmarketcap.
As we can see above, this coin is currently worth $23.34 and it is ranked number 11 on the coin market cap with a market cap of $23,053,621,009 daily trade volume of $1,283,335,099 and a circulating supply of 987, 579,314.96 DOT
Without mincing words, the polkadot cryptocurrency is one of the most exciting projects currently in the cryptospace. The way it is structured makes it quite unique and extremely powerful especially its blockchain. The polkadot network ensures transaction efficiency, reduced costs and increasing scalability. Let's take a look at the All Time Chart of this coin below.
As we can see above, this coin has the potentials to go up further because the general trend is uptrend as indicated on the chart. Infact analyst have speculated that DOT could rise to as high as $29 before the end of the year 2022 and by 2025, it could reach $41. However, we should remember the crypto market is very volatile as such one needs to be very careful and do thorough research about any coin. But overall, I'm very optimistic that this coin will rise and do great in years to come.
In this section, I'm going to be placing a live trade on the DOT/USDT crypto pair. I will be trading on my Binance account while my analysis will be carried out on the MT5 trading platform using multiple timeframes analysis.
Now, let's check the 4hr trading chart for analysis.
On the 4hr traders chart above, I noticed a double top was formed and the market was coming down although on the RSI, it was showing oversold but I will check a lower timeframe to further confirm this.
Looking at this pic above, on the 1hr timeframe, price fell after it could not break a major resistance, it went further downward to break a support turned resistance meaning we should expect a downtrend from this point.
I proceeded to place a SELL ENTRY, I placed my stop loss and take profit at the strategic positions using a risk to reward ratio of 1:2
The picture above shows the running trade on the crypto pair that I took.
No, I do not plan to hold this coin for a long time because I only took a short term trade but subsequently, I could get some of this coins after doing more research.
I can recommend this coin to people base on the following reasons I'm going to be highlighting below.
Polkadot has a heterogeneity characteristics, it's blockchain can connect other blockchain and networks together and these networks are private and permissionless blockchain and smart contracts.
Due to the fact that Polkadot is a sharded multichain network, it can process many transactions within few secs hence it is highly scalable and this characteristics will create the right condition for increased adoption and future growth.
Another reason why this coin is recommendable is because it is one of the first blockchain to have a governance process built into the ecosystem.
Another key thing I will like to figure out is that this platform has an extra-key security via multi-sugnature accounts which helps to secure account holders public and private keys.
Firstly, I will like to mention some notable exchanges where the DOT can be bought, traded or exchange. These exchanges include : Binance, Gate.io, Kucoin, Kraken, Bitfinex, FTX etc. We can check more on this on the image below
Let's also check and explore official website of this platform.
Also let's take a look at the polkadot blockchain explorer where we can check the latest transactions going on within the network.
In this post, I have been able to discuss extensively the POLKADOT crypto project in relation to the project background, founders, market statistics, price projections and recommendations.
I also placed a trade on the crypto pair DOT/USDT using my Binance account, however my analysis were carried out on the MT5 trading platform using multiple timeframes.
Special thanks to the team leader, professor @pelon53 for his support and guidance.
Pls sir professor @pelon53, I will be very grateful if you can kindly help me check my first post again and re-grade it, have corrected my mistake and posted a new coin which I traded, thanks sir.
https://steemit.com/hive-108451/@feyol55/algo-usdt-sell-or-crypto-academy-or-s6t4-or-homework-post-for-pelon53
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Saludos @feyol55, no puedo porque ya se revisó. Por eso es importante que estés atento a las normas. Feliz fin de semana
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