Am participating in this week trading competition under the investors team that is lead by professor @pelon53. For Day2, I will be trading a pair of KMD/USDT on my Binance exchange account, while my analysis will be done using Tradingview.com.
The name of the token and introduction of the project. Technical background of the project, team in charge of the project and important data of the project. In which Exchange or exchanges can be negotiated.
The name of my token for today's trade is called (KMD token), which is the native token of the Komodo network and it is a token that functions and exists on the Komodo ecosystem itself, which means blockchain projects can be created and hosted on the Komodo ecosystem.
This became the first project token to use the DPoW(Delayed Proof of Work) consensus mechanism, which makes the platform to be as secured as Bitcoin, and to be safe from hackers. The project platform is equally a very scalable one, as it claims to process about 1 million transactions per second.
Back in 2014, an anonymous set of developers known as the JL777 decided to create the Komodo platform out of the Zcash ecosystem. So basically, Komodo uses the security of BTC, and the privacy of Zcash.
According to CoinMarketcap, The KMD token can be traded on so many exchanges, some of which includes; Binance, WazirX, CoinEx, Huobi Global, KuCoin, Bitvavo, Bitbns, HitBTC, Crex24, and so on....
As of the time of writing this post, below are some important informations about the KMD token
| Information | Value |
|---|---|
| Price of KMD: | $0.5948 |
| Ranking: | #463 |
| Market Cap: | $77,903,877 |
| Circulating Supply: | 130,974,413.34 KMD |
| Volume within 24hrs: | $3,187,397 |
Why are you bullish on this token today?
I am really bullish about the KMD token today because of the many potentials of the token. Back in late 2016, the ICO of the token made provision of extra 10 million KMD token for the sake of future investments and support of the project. And to me this means the project is actually in safe hands. Another interesting aspect of this token is it's consensus mechanism (DPoW) which has proven to be even more secure than the PoW mechanism.
Although the token is regarded as a privacy token, I see it as a token that is basically shining in the Shadows.
As you can see on the screenshot above, the KMD token has grown up to around 1170.80% and a volume increase of about 1.552 billion from the beginning of 2020 till date, which shows that the coin has been doing really nice. I observed that the price of the token has been showing more bullish colours today and I think the bullish trend will continue for some time
What is your plan? Do you want to keep it for a long time? Or when to sell it?
For now, I would buy this coin and hold it for a day or two before selling it off, because I don't really have enough money💰 to buy lots of coins. But If I had gotten enough money I would have kept this token for long time, because of the secure and scalable network it offers.
So for today's trading, I will be using two different indicators to analyze and place my buy order. The first indicator is made up of two moving averages (50 and 200 days MA) which is mostly regarded as **The Golden or Death Cross. When the 50 day MA(green) crosses the 200 day MA to the upside, it signifies that buyers can place their buy orders.
I confirmed this bullish trend using a Vortex Indicator, where we have the blue(+v) and red(-v) lines going up and down. When the blue line crosses the red line to the upside it signifies that buyers are currently in control of the market.
After observing that my analysis indicates that I can now enter the market, I decided to use a risk-reward ratio of 1:1 to place a buy order on the KMD/USDT pair.
I used a 3 minutes timeframe, to place my buy orders when the price was ranging around 0.5830, so I decided to place my stop loss and take profit at 0.5768 and 0.5888 respectively.
So I then went to my Binance exchange to place my order. I will be placing a spot order on KMD/USDT pair.
| KMD/USDT OCO | Buy Order |
|---|---|
| Entry Price: | 0.5801 |
| "Stop Loss:* | 0.5768 |
| Take Profit: | 0.5888 |
And as you can see on the screenshot above, the 2 orders are now pending, so when the price gets to either of the buy conditions, then the other order will be cancelled.
After sometime, my order was executed successfully, and happiness here is that it meet the conditions of my Take Profit, which means my trade ended with good returns.
Do you recommend that everyone buy it?
It is true that this coin is here to stay, and the ICO of its project have even set aside some huge amount of money for the future growth of the token, but because of the anonymity of the founders of this token it is somehow hard to recommend it to everyone, because the crypto market is very unpredictable and anything can happen at anytime.
So to be on a safer side I would only hope that nothing goes wrong with the project, but I would not necessarily recommend it to everybody.
Any other important information of the token/project and Conclusion
It is equally important to note that the Komodo ecosystem uses a multi chain syncing which helps in the processing of multiple transactions in just few seconds. The Komodo project equally supports the interaction of various different chains within the Komodo ecosystem.
One of the biggest wins of the project was that it was able to develop a decentralized exchange called Atomic Swap where two different type of coins like the ERC-20 tokens and altcoin would be traded from wallet to wallet.
I am really greatful that my trade ended with profit once more, this means that the technical analysis and guidance we were taught by our professors are not in vain. I will continue to say a big thank you to professor @pelon53 for this guidance on the trading competition and I hope to make better trades in the nearest future.
Thank you for your time.
Note: All screenshots were taken from my Tradingview and Binance exchange account.