This post expired and was not curated so I'm making a repost, I got a grade of 9.8/10 as confirmed in the link below.
Good day steemians, it feels good to participate again in week 2 of this trading contest, today I will posting my trade details on the BNB/USDT crypto pair.
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IMAGE DESIGNED ON POSTERMYWALL.COM
Another cryptocurrency making waves in the frontline of the crypto space is the Binance coin popularly called BNB. This coin was developed by the popular exchange platform BINANCE back in the year 2017. It was actually issued out and launched during an ICO (Initial Coin Offering) event that took place in June 2017. The BNB is the native token of the Binance crypto platform and it serves a lot of functions which will be discussed subsequently in this post.
The Binance coin was actually first issued out as an ERC-20 token on the Etherum Blockchain, but as time goes by in 2019, Binance later launched their mainnet blockchain known as Binance chain and it adopted BNB as its main token and subsequently all ERC-20 BNB token were changed to Binance Chain-based BNB coins. Also in 2020, Binance took a step further again and launched the Binance Smart Chain (BSC) which stood as a separate blockchain aside the already established Binance chain. Reports has it that, the Binance Smart Chain (BSC) processes about 12 million daily transactions as at may, 2021.
BNB had an initial total supply of 200,000,000 after it was launched in 2017 but that amount has reduced now as a result of regular burning which happens at every quarter of the year, and this burning will continue until the maximum BNB supply drops to 100 million. According to the image below, we can see that BNB currently have a circulating supply of 165,116,761BNB.
The image above also shows the market details of this coin which is ranked number 4 with a daily trading volume of $3,023,522,938 and a market cap of $67,819,809,259.
Meet Changpeng Zhao, the brain box behind the Binance project which has been estimated to be worth over $2 billion just one year after it was launched, that's incredibly massive !
The Binance coin is a very solid project and the results achieved so far speaks volume of its amazing potentials. Let's take a look at some of the key features of the Binance which has made the project highly valuable and attracted a lot of investors.
- BINANCE LAUNCHPAD
The Binance Launchpad was created to serve as a platform where entrepreneurs can launch their new projects and issue tokens. The service will enable new projects to be exposed to a wider global audience on one of the world's most trusted and largest exchange. An example of a recent launchpad project which was successful is the Matic Network.
- BINANCE DEX
The Binance exchange itself happens to be a centralized system but now, the platform has Binance DEX which is a decentralized exchange feature built on the Binance Smart Chain. The Binance DEX ensures that there is no central authority or single point of failure and there is increased user privacy.
- BINANCE LAUNCHPOOL
These feature on Binance makes it possible to farm new tokens. Projects can easily issue their token into circulation using the Binance launchpool and also users get rewarded with other tokens for staking their BNB tokens here.
- BINANCE RESEARCH
The Binance Research helps to give information and latest insight into different on-chain analytics as well as new crypto projects and ventures using data-driven analysis.
Permit me to pause here as far as features of the Binance Ecosystem is concerned, we still have some others like Binance charity, Binance labs etc
With all these features, I'm quite optimistic about this project as it has a lot to offer and it has attracted a global audience and adopted by many. It was reported that as at October 2021, Binance was estimated to have over 28.5 million users worldwide and as at 2021, Binance was already 7x bigger than its value in 2020 and this is just the beginning.
Let's take a further look at the price of BNB on the coinmarketcap
As seen above, the price of BNB currently sits at $412.08 which is not too bad considering the fact that the crypto market is generally in a bearish run at the moment.
I noticed from my analysis above that BNB is currently sitting on a strong support and looking at market structure, it price pulled back after testing the support and trendline as indicated on the chart above, so I'm very optimistic that BNB may actually test the next resistance level which is about $500 before the end of the year, which means that this is probably the best time for anyone to get hold of this highly valuable coin because it will definitely rise again.
In addition, it's quite interesting to know that BNB have a 24-hour trading volume of about $3,023,522,938 and if you ask me, i will say that's quite impressive.
In this section, I will be using the MT5 trading platform to carry out my analysis using multiple timeframe and I will be using the much talked about Binance exchange platform to place my trade. To start with let's check the daily timeframe.
Looking at the daily timeframe above, we can clearly see the support and resistance zone and currently the price is sitting on a strong support and I could observe a Bullish candle currently forming. I will move to the 4Hr timeframe to get a clearer view
On the 4hr chart above, I can spot another support zone again where price touched and reversed, I indicated this support zone with a black horizontal line on the chart. In addition, I notice an Inverted hammer candle was formed at the point of rejection on the support line. This gives a clear indication of price reversal and subsequently we could see some series of bullish candlestick forming in succession. Now, let's go over to the 1hr timeframe to observe the market further.
We can see here that price is already going up (bullish reversal) after testing the support zone. Also we can see RSI and stochastic Indicator further confirming a possible retracement of price as both were trading at the oversold level but gradually the indicator are moving up. Now, let me go over to a lower timeframe preferably the 15mins timeframe to place an entry.
Wow, I noticed that on this timeframe, price broke a resistance zone and I can again see some series of bullish candlesticks forming in successions. In addition, to confirm this entry again, I notice that price broke the resistance line of the Bearish Wedge Pattern as indicated on the chart. All this observations together with my previous analysis on the higher timeframe points to a strong BUY SIGNAL.
So I quickly placed a BUY ENTRY as indicated on the chart, also my stoploss was placed at the resistance level turned support now, and I placed my take profit at the next support level now turned resistance level (Ratio 1:2)
Boom ! I came back to check this trade on the 30mins timeframe after some hours and I saw the trade has gone up in my direction as have analysed correctly.
I made a whopping 90% profit from this trade alone, interestingly the market later still went further up but I had to control my emotions so as not to let greed set in so I closed my trade at this point.
The image above shows my trade details history, my entry price was 366.400
while my exit price was 383.630 and I made a profit of $1.20
Base on the nature of trade I took, I really don't plan to hold it for a long time because this is a short-term trade and I closed in profit within few hours. But in the long run, I plan to buy some BNB coin and HODL since this coin has huge potentials.
Yes, base on my analysis in the previous section of this study, I strongly recommend this coin to anyone who wants to invest in crypto. I will be highlighting some benefits that this coin offers below.
The BNB which is an utility token can be used to trade and pay fees on the Binance exchange.
The BNB coin can be used for making different payment for different services which includes online purchases, travel, entertainment, transfers etc.
The burning policy of Binance which will reduce the total supply of BNB in circulation could result in scarcity and as we all know in terms of economics, scarcity increases the value of an asset or commodity, this translates that as the burning continues, the value of BNB coin is expected to further increase with time which is a good one for all holders of the coin and investors.
The platform that created the BNB coin which is Binance is a popular exchange site which has earned the trust of investors over time. Infact, Binance currently stands as the largest crypto exchange with the largest number of cryptocurrency pairs available. This is a big positive for users and investors.
In addition, Binance also offers swift and fast transactions as well as low transactions fee in the crypto industry.
Interestingly, Binance also have a special feature known as Binance charity. BNB holders can donate their BNB coin as charity using the feature to help improve the welfare of people around the world.
Let's take a brief look at the Binance chain explorer. This explorer enables users to interact with the Binance blockchain.
As you can see here, a user can check the current price of BNB and as well know the market cap and current trading volume. Also, this explorer refreshes or updates itself every single second.
Users can also check the full details of blocks created, addresses and the time it was done.
We can also check every single transaction that is being carried out every seconds here.
To cap it all, let me list out some top exchanges where one can trade or buy the BNB coin. We have ; Binance, Bithums, Kucoin, FTX, etc. Also, BNB can be swapped to other BSc-tokens on pancakeswap and Bakeryswap.
In this study, have been able to discuss the BNB cryptocurrency in relation to its historic background, key details and information, benefits and price projection. However, it is to be noted that every information provided in this post is subject to my personal research and findings, hence I will implore anyone who wants to invest in this coin to also DYOR.
Furthermore, I was able to also place a trade on Binance futures using the isolated margin. However, my analysis was carried out on MT5 trading platform using multiple timeframe analysis while I placed my trade on Binance trading platform and I was able to make good profit from the trade.
I'm beginning to enjoy the crypto trading more now, and I can only get better as time goes by. Without mincing words I can say the knowledge I got in this academy has been really helpful.
Special thanks to the team leaders, professor @reminiscence01 and professor @nane15 for their incredible support and guidance.