Hey Guys!

This course looked perfect for a beginner like me, who wants to learn more about Crypto. I really appreciate @huzaifanaveed1 for coming up with something that would help us with the basic understanding of Crypto.

Homework Questions

1. What are the different trends found in the market. Show example with screenshots attached. (Use tradingview.com for the charts)

Answer

Before we directly talk about market trends, let's first talk about the types of market that are present.

Trending Market	Ranging Market
-The type of market in which the prices are moving in a particular direction. Be it downward or upward	-The type of market in which there is no definite ups or lows but the market prices are ranging between certain limits that cannot be called high or low.
- Tadingview	- Tadingview

Now that we have understood Trending and Ranging Market. let's talk about the two main trends in Trending Market.

• Uptrend
  When the Prices are moving in the upward direction, it is known as an Uptrend or Bullish Market.

Tadingview

-Downtrend
When the prices are constantly being lowered, it is termed as a Downtrend or Bearish Market.

Tadingview

1. Briefly explain when is the best time to buy an asset and when should you sell the asset so that you don't get in loss in a trending market (screenshots needed)

Answer

Having to know when is the best time to buy and sell the assets requires a lot of technical analysis, and it may take us a while to be able to do the right analysis. But even without that, there are some basics that you need to know in order for you to make the right decision as to when to buy and sell you assets.

Buying Assets

After the accumulation phase, when prices start to peak and you see the trend moving upwards, that is when you should wisely invest into the asset. As the prices are increasing, buyers are in a strong position and buying right now would be profitable for them later.

Selling Assets

After the prices have been constant for a while, i.e you notice the uptrend has ceased and the prices are not in definite up and lows, it means the market has entered ranging market and it's recommended to start selling your assets before the market hits a complete Lower Low.
Selling before the downtrend is profitable for the sellers and as the downtrend starts, the market has officially entered bearish phase.

Tadingview

3)Show and explain the different phases of the Market on Crypto Asset except: BTC, ETH, ADA and BNB. (Screenshot needed)

Answer

For this example, what better currency to take than Steem itself. So here goes,

Accumulation phase	Markup Phase	Distribution Phase	Markdown Phase
-Accumulation Phase is when the whales have started collecting their assets. This Phase is also known as the "Cause Phase", which means it will gradually and eventually have effect on the market in the future	-This Phase is basically the effect of accumulation phase when the prices hit right up. The Phase is also called "Uptrend Phase", the prices are very volatile at this stage	-The next Phase is the Distribution Phase, when the prices have started to lower and the markup phase has ceased. The whales will not try to gradually start selling the assets to make maximum profit.	-Last, bot not the least, the Distribution Phase is followed by a rapid Markdown phase, where the prices drop down quickly and hence, also called "Downtrend Phase"

Tadingview

1. demonstrate how will you use the phases of the market to your advantage. Where will you buy the asset and where will you take profits? (Screenshot needed)

Answer

The accumulation phase is where all the whales will try hoarding up on the assets, which means the prices will soon hit the markup. This is the best time buy as many assets as possible, as it the prices will soon touch their peaks.
The only thing that matters here is to identify the accumulation phase by doing the right technical analysis.

Distribution Phase is where you should consider selling your assets. people might confuse it with accumulation phase and buy more assets but that will only result in loss. Selling your assets at the right time of distribution phase will bring maximum profit to you.

Tadingview

CONCLUSION

Crypto is all about learning about the market trends, phases and to be able to do the right analysis, which will result in maximum profit for you.

Knowing when to enter and exit the market at right time, is the key to not losing your money and making profit of what you have got. Being able to strategically remain in the game may take some time but you'll get there by learning about the market trends and phases.

Special Credits: @huzaifanaveed1

By, @kinzaghauri
Achievement 4