Hello steemian ...
This is my new post in the Steemit Crypto Academy community, on this season 5 week 1, I will be working on a homework from professor @imagen with the theme "Exchange Coins”.
we will discuss it through the homework below:
1.) perform a complete currency analysis of multiple exchanges. Not allowed: BNB, KuCoin, Cake, and Uniswap.
Huobi Tokens (HT)
Huobi Token (HT) is the currency of Huobi Exchange, an exchange developed by the Chinese company Huobi Group. Huobi Group is a company engaged in digital asset finance. Currently, Huobi has collaborated and opened exchanges in several countries.
Huobi token (HT) analysis
technical analysis, Huobi (HT) token is currently in a downtrend (based on the HT/USDT chart). The Huobi token was trending down as this screenshot was taken on 11/18/2021 at 08:00 UTC. Currently, the price of the Huobi token (HT) is 10.0544 USDT.
In terms of fundamental analysis, Huobi Token (HT) has pretty good fundamentals. Huobi Token (HT) is ranked 82nd on coinmarketcap and uses the ethereum network. Currently, the supply of Huobi Token (HT) in circulation has reached 32%, which has reached 159,308,566.25 HT of the total supply of 500,000,000 HT. Judging from the company that houses it, namely the Huobi Group, it seems that it has good Huobi Token (HT) fundamentals and is good to buy as a long-term investment.
Atomic wallet coins (AWC)
An atomic wallet is a digital wallet that contains decentralized cryptocurrencies. Atomic Wallet was founded by Constantin Gladych and Charlie Shrem, now Atomic Wallet has got support and access to over 500 tokens and coins.
Atomic wallet coins (AWC) analysis
technical analysis, Atomic wallet coin (AWC) is in a downtrend, but I took a picture on the yearly chart because there are too many gaps if I take a shorter timeframe. Currently, the Atomic wallet coin (AWC) is priced at 1.25 USD.
Fundamental analysis, Atomic wallet coin (AWC) has promised fundamentals and grew 2.65%. Atomic wallet coin (AWC) is ranked 1041 on coinmarketcap and uses the ethereum network. Currently, the supply of Atomic wallet coin (AWC) has reached 10,603,658.69 AWC out of a total supply of 100,000,000 AWC, but it is not yet known what the maximum supply of this coin is. The basics of this coin are good because it currently has a supply of 10.6%, but since it doesn't reach the maximum supply amount, it will be worrying in the future. But when totaled
The supply has stopped at 100,000,000 AWC and has reached the maximum, it will be profitable.
Change NOW Token (NOW)
Change NOW is an exchange that offers easy, fast, and secure transactions. The Change NOW exchange was formed by the company CHN Group Limited, originally from Seychelles. Currently the Change NOW exchange has over 300 assets in use it.
ChangeNOW Token (NOW) analysis
In technical analysis, ChangeNOW Token (NOW) is in a downtrend. I took a picture on the daily chart, Currently, the ChangeNOW Token (NOW) is at 0.059 USD.
Fundamental Analysis Change NOW Token (NOW) has good fundamentals at least for now as it is down 13.18%. Change NOW Token (NOW) is ranked 1395 on coinmarketcap and uses the ethereum network. Currently, the supply of Change NOW Token (NOW) in circulation has reached 83,860,980,23 NOW out of a total supply of 199,763,510 NOW, but it is not known what the maximum supply of this coin is. The fundamentals of this coin are good at currently reaching 42% supply, but not having it because it deals with the maximum supply amount, will be worrying in the future. However, if the total supply has stopped at 199,763,510 NOW and has reached the maximum, it will be profitable because there is almost no price rebound in the future.
2.) Make purchases of at least US$ 10 of the currency you describe above. You have to make some moves with that currency in the exchange that created that currency. Show a screenshot and explain in detail the steps to follow. Examples: transfer of funds, Staking, participation in Launchpad, futures trading, etc. Indicate the reason why you chose that option (operation) on that platform.
purchase US$ 10
In this question, I will be purchasing Huobi tokens (HT). to purchase Huobi tokens (HT), I have to do it on the global Huobi exchange platform.
The first step, make sure you have registered an account on the global Huobi exchange platform.
The second stage, enter the platform and select the market menu and then select the exchange menu. Then in the search menu, I selected HT/USDT and then clicked.
- After that, we will be shown a graph and a purchase menu as below. to deposit USDT, select deposit.
- For deposit options, in the coin select menu select USDT tokens. Then on the deposit details menu, select the chain to make the delivery. Here I chose the ERC20 chain which means it is the Ethereum blockchain address. after that, then we will be sent a deposit address and we must send USDT to this address.
- After the deposit is successful, then we immediately return to the purchase view. Fill in the total for the amount of USDT that we want to use to buy Huobi tokens (HT), here I fill in 15 USDT and immediately choose to buy HT. I bought it at 9.75 USDT, so I got 1.538 HT.
the reason why I chose the option (operation) on the Huobi Global platform
the reason why I chose the option (operation) on the Huobi Global platform is that it is more practical and easier than the Atomic wallet or ChangeNOW platforms. Huobi is also cheaper to deposit, while ChangeNOW has a big price issue in deposit amounts. On Huobi we can deposit as little as 20 USDT while on the ChangeNOW platform it is more expensive.
In addition, the display from Huobi Global is easier and I am very familiar with the display of such purchases, while the Atomic wallet or ChangeNOW display is a bit foreign to me, so to avoid the risk of mistakes in transactions, I also choose to perform options (operations) on the Huobi Global platform.
3.) Show the return on investment in the 0, 24, and 48-hour timeframes from your purchase. Take a screenshot where you can see the asset price and pick-up date.
0 hours
For the 0 hour view which is 23.50 UTC+7 on 11/18/2021, the price is at 9.7475 USDT and in a downtrend. At this time I got a loss of 0.026%.
24 hours
For the 24-hour view at 23.50 UTC+7 on 11/19/2021, the price is at 9.9606 USDT and in an uptrend. At this time I got 2.186% profit.
48 hours
For the 48-hour view at 23.50 UTC+7 on 11/20/2021, the price is at 9.6379 USDT and in a downtrend and there seems to be an indication of a reversal. At this time I got a 1.124% loss.
3.1) Does the price of the asset act independently or does the price strictly follow the correlation with Bitcoin?
You can add any information you want, creativity will count.
To see whether the price of the Huobi Token and Bitcoin assets moves independently or has a correlation, I will observe chart patterns and compare the movement of the Huobi Token and Bitcoin charts. Screenshots will be taken randomly.
At this time the movement between the Huobi Token and Bitcoin chart movements has a very similar resemblance, both are in a downtrend and the chart movement is closely related to the bitcoin movement.
At this time the movement between the Huobi Token and Bitcoin chart movements is similar but not very similar, both are in a state of price reversal towards an uptrend. the movement of the moving chart is not very strict with the movement of bitcoin but correlates.
The conclusion that can be drawn is that the price movement between Huobi token and bitcoin has a fairly high and tight correlation. But the movement between the two is not always 100% the same, we can take advantage of every movement that occurs from both.
4.) What is futures trading?
Futures trading is a trading method in which transactions in an asset are based on futures contracts, where you can buy and your purchases will be given according to your contract. It's easy to understand how you on a buy or sell order, you can buy and sell at the price you want that will happen in the future. Buy and sell orders are one of the facilities provided in the futures market.
- Traders can minimize losses in case of a price drop that goes against their predictions, they can set it up in advance.
- Trader can still make a profit in both directions, even if the market is down he can buy at a low price and when the price is high he can get maximum profit.
- The assets you own are not real, meaning you do not hold the assets for real.
- Futures market price movements tend to be gambling and difficult to predict. If you experience a loss, it is usually a big loss.
- Cannot be done by novice traders, traders in futures trading must master analytical techniques.
5.) What is a margin market?
Margin trading is a type of trading that uses borrowed funds as capital provided by a securities company or exchange platform on which traders make trades. This is a facility provided by a securities company or exchange platform that allows traders to be able to buy assets in large quantities according to the capital that has been ordered, which is based on the concept of the leverage ratio, namely the ratio of loans to the amount of capital. Suppose I use a leverage of 100: 1, with the money I currently have, which is one million. So by using a leverage of 100:1, I can open trade of 100 million.
- Traders have the opportunity to get bigger profits because they have large loan capital.
- By having a lot of capital, traders can open several positions by dividing the amount of capital.
- Traders can open positions quickly without having to have a lot of money and it doesn't take long to transfer large amounts of money into their account because it has provided a securities company or an exchange platform.
- With a large capital, when the trader has a loss then it will be multiplied. This means that a doubled profit will have the risk of experiencing a doubled loss as well.
- Traders who do not understand the application of risk management will find it difficult to use the leverage facility.
6.) What happens to the cryptocurrencies of exchange when they get hacked or turn out to be fraudulent? Give at least 2 real-life examples.
For this case, I take the most popular real-life example, which is what happened in global liquid exchanges, poly network exchanges, and cases of squid games coin fraud. For the liquid global exchange case, they were hacked on August 19, 2021 yesterday. As a result of this incident, the hackers managed to get as much as the US $ 97 million.
Then a week before the hack on the global liquid exchange, the most damaging hack occurred. The hack occurred on a poly network exchange on August 10, 2021. The hackers managed to steal around US$600 million of digital coins from the Poly Network.
And the most horrendous incident recently was the fraud incident that occurred in the coin squid game (SQUID), the coin which was launched in October managed to gain interest to make a large capitalization of US $ 2 million. But when many people started to invest their money in this coin, this coin also slumped, and even now its price is touching 0. This kind of incident is termed rug pull, which is a type of fraud in which fraudsters deliberately create fake projects to take investors' money away.
7.) Conclusion
Now many of the exchange platforms have created their tokens or coins. For now, most of the tokens or exchange coins usually use the Ethereum network as I demonstrated in this assignment, namely the Huobi Token (HT) from the Huobi exchange platform, the Atomic Wallet Coin (AWC) from the Atomic Wallet exchange platform, and the Change NOW Token (NOW). ) from the Change NOW exchange platform.
Most of the exchange coins have good fundamentals, this is based on the investors and the companies that own the coins that can make this coin even better in the future. However, every exchange does not guarantee that it is free from hacking because of course, no matter how great the security of a decentralized system, it certainly has loopholes that can be hacked, such as the events experienced by liquid global exchanges and the Poly Network. But this does not mean that a decentralized system has low security, this can certainly be advice for security developers on a decentralized system so that the security system can be improved even better in the future.
Reference
https://www.moonstats.com/hi/news/hackers-stole-over-90m-from-japans-liquid-global-crypto-exchange/
https://cryptoslate.com/poly-network-hacker-returns-over-260-million-after-defi-heist/
https://coinmarketcap.com/alexandria/article/i-lost-everything-how-squid-game-token-collapsed