Hi Professor @nane15, I am @ononiwujoel one of your students in Crypto Academy and a member of the steemit platform. I'll be participating in the crypto Academy competition as a member of your group Reminane this week.
For today's submission I'll be analysing and Trading with a top-rated crypto asset called BNB.
Introduction to BNB cryptocurrency
BNB is the native token of Binance ecosystem. Binance is the most popular and largest crypto exchange in the crypto industry. It has the highest trading volume among all crypto platforms and is available in most countries of the world today. Binance was launched as an ERC-20 token initially before it was able to move to its own Blockchain and today the Binance is a full-fledged decentralized network consisting of Binance Chain, Trust wallet, BSC (Binance Smart Chain) and several functionalities for its users. Binance ecosystem also have top rated projects established including Pancakeswap, Venus, Rabbit finance, Ellipsis, Biswap, MDEX, Coinwind, Tranchess and several other crypto based projects. There are also several crypto tokens running on Binance ecosystem of which some are also top rated coins in the crypto market.
BNB like mentioned before used the Ethereum proof of work consensus algorithm when it was launched as an ERC-20 token but over time it moved to its own Blockchain and now uses the Tendermint byzantine-fault-tolerant (BFT) consensus protocol to secure the network and sustain scalability. BNB maintains a good transaction speed and a relatively very low gas fees and transaction cost coupled with the deflationary tokenomics available in the network.
The founder of Binance is Changpeng Zhao who happens to be very experienced with the finance markets having worked with a number of classy firms on blockchains and finance market. BNB was launched in July 2017 and after the launch of Binance Exchange platform with its ICO held same month which was able to raise around $15,000,000 for the project.
BNB currently ranks #4 on coinmarketcap with Market capitalization of $67,329,765,669.32, 24hr trading volume of $1,697,226,286.27, Market dominance of 3.46%, circulating supply of 165,116,761 BNB. The entire BNB token created is actually in circulation.
BNB Markets
BNB is one of the most popular coins in the crypto space, ranking fourth with highest market capitalization and also having an impressive trade volume. BNB is traded on several crypto wallets, Staking platforms and popular exchanges including Binance, Huobi Global, Pancakeswap, Gate.io, Kucoin, Bithumb, Trust wallet, FTX and others having several trading pairs
Why are you bullish on this token today and how long do you think it can rise?
BNB remains a very attractive project to several investors and has a strong community with a positive market psychology which keeps sustaining it value over time. Binance Exchange is the most patronized crypto exchange in the world today and it uses BNB also as its native coin so there are always trade orders involving BNB every period as people trade in Binance. There are also several other attractive platforms built on BNB and BSC like trustwallet, pancakeswap, Ellipsis, MDEX and others which also adds value the network.
Moreover BNB was sold for $0.10 during its ICO in July 2017 but today its traded for over $400 and has even recorded an ATH of $690 so we can see the amazing surge in value between its launch and today. And there's every chance of this coin hitting another ATH of maybe $800 or above soonest.
From the BNB/USDT chart above we can observe that a bullish trend has been initiated with the price hitting higher highs and higher lows and from the EMA indicators we can confirm the bullish as the EMAs are running below the price serving as dynamic support lines meanwhile the A/D Indicator below also shows the market is on an Accumulation stage and having more buyers than sellers so this shows BNB is currently on the rise and I'm expecting this to maybe hit $450 soon.
Technical Analysis and Trading with BNB
In this section I'll be analysing this asset using technical tools including the chart, EMA and RSI technical indicators for confluence trading to confirm market signals and filter noise.
I'm using two EMA periods which are 20 EMA and 50 EMA in this analysis. The use of these two EMAs with different periods to help properly analyse the trend movements to identify trend reversals, trend continuations, trade opportunities and forecast possible trend movements.
While the RSI (Relative Strength Index) indicator like its name implies calculates the relative strength of trends and shows when the asset is overbought or oversold. The asset is overbought when the price rises above the 70 point zone and oversold when it falls below the 30 point zone on the RSI chart below. The RSI line on the other hand shows trend changes thereby illustrates the trade activities of buyers and sellers in the market.
Using this combination it is easier to identify trade opportunities and avoid false calls in the market hence creating a better chance of a profitable trade.
After setting up the BNB/USDT chart above with a 2hr time frame and our technical indicators we can observe that the market is on a bullish trend and the price is recording higher highs and higher lows, both EMAs are now running lower than the price serving as dynamic support and the RSI indicator is also running above the midpoint (50) signalling a bullish market, moreover the price is not yet close to the overbought zone (70 point) so we should not be worried of a bearish soonest.
Using our chart and indicators for confluence we have confirmed the bullish trend and its continuation till further notice so it's a good time to enter the market via a buy trade position.
So I made my trade entry at $408 with my Stop loss at $402 and Take profit at $420 thereby giving a Risk/Reward ratio of 1:2 which is actually a very good option for profitable trade worth the risk.
For this trade entry execution I'm using my KUCOIN exchange account
My Buy trade order has been made so I'll now wait for results which I believe should be profits
Your plan to keep it for a long time or when to sell it?
Yeah I plan to hold this position for a while but I'm a short-term trader so I'll always try to sell when a bullish market turns bearish to avoid losing already made profits and then buy the asset again once the bearish is done with. So I may hold this position for a week or less depending on the price movement
Do you recommend everyone to buy? Give reasons for recommending or not recommending.
I strongly recommend BNB for every investor whether short term or long term because this is an asset you can really count on especially in the nearest future. BNB has successfully risen in value from few cents to hundreds of dollars over a few years and has also established several attractive projects which are also making waves in the crypto space.
BNB ranks among first five cryptocurrencies in coinmarketcap and has a strong community support behind it as well as a renowned crypto exchange and academy adding value to the asset both in trading volume, market cap and market dominance.
So this asset is a full package and I'll surely recommend it to all crypto enthusiasts.
Conclusion
BNB as the Binance network native coin is associated with tokens like BSC, TWT and CAKE which are also successful projects so far. BNB has a low transaction cost and gas fees which is part of the reasons Binance is preferable to crypto traders although the consensus protocol powering the network doesn't support smart contracts.
Binance since its inception has been able to grow steadily and today stands as the highest rated and largest crypto exchange in the crypto space. Binance has also created its DEX version as well as staking platforms and wallets that use BNB and BSC to power the platforms.
It was a great time discussing, analysing and Trading with BNB crypto asset in this submission and I do appreciate it.
Cc: Professor @nane15