REPOST- AAVE/USDT - Trading Competition - Crypto Academy / S6t4 - Homework post for pelon53

Hello professor @pelon53

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Welcome to my second trading competition, this is the second team and I must say am actually enjoying this trading competition and I hope this initiative stays in the next season of steemit’s CryptoAcademy. Without wasting much time let’s go ahead to my post.

Q1 : 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 exchange can be negotiated.

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For today’s trade, I will buying Aave coin. Actually I have been keeping tabs on this coin and after doing some analysis which I will share later with you guys I have decided to buy it today. But before that let’s talk about the token project.

Aave is project that was launched in the year 2017, however it wasn’t referred to as Aave in the beginning it was known as ETHLend until a year later the CEO of the project Stani Kulechov offered to change the to AAVE which means Ghost in Finnish. The main aim that lead to the creating of this was project was the CEO observed that they weren’t any or the lending apps on the ETH blockchain were very few. That’s when he developed this project to take care of that.

So the AAVE project allows traders, investors and its users to be able to borrow asset without having to deal with any center authority or any intermediary. Hence it is decentralized in nature. The AAVE platform basically consists of lenders and borrows, lenders are able to make profit by deposit their asset into the liquidity pool and start earning on them. Users who also wish to take out (borrow) the asset also put up a collateral before they are given the asset. So Incase you are not able to pay, the collateral will be liquidated and payed to the lender.

AAVE blockchain runs on the proof of work consensus algorithm, however works are in progress to move it to a proof of stake consensus algorithm so that it’s capable of handing many transactions per second.

Before AAVE coin was lunched in 2017, an ICO was organized to raise funds for the project during the ICO, they were able to get about $16 million through selling about a billion tokens. About 23% of that amount was given to its founders.

Team of AAVE project

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In this part of the assignment I will listing some brilliant minds behind the AAVE project and the positions they hold.

Name	Position Held
Stani Kulechov	Founder and CEO
Rebecca Rettig	General Counsel
Ajit Tripathi	Head of Institutional Business
Nicolo S	Director of Strategy
David Truong	Software Engineer

Source

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According to the CoinMarket cap, AAVE is currently valued at US$207.02 price change in last 24hrs it + US$37.74, it has a market cap of US$2.83 Bn and a 24hr volume change of $1.09B.

Source

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AAVE, can be traded in the Popular exchanges in the world like Binance, Poloniex , Houbi, kraken, gate.io, Coinbase, bitfinex, Upbit, FTX, Bitstamp, proBit global and more. See screenshot below.

Source

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Q2 : Why are you bullish on this token today and how long do you think it can rise?

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As I have already said in the introduction I have been following this asset for some time now. Let’s take a look at its historical price within the week

Source

From the screenshot above you can see that on the 20th the price of the asset closed at $152.47, gradually increasing and decreasing in the price on the 24th it closed at $168.63 you see that it has gained momentum of +$10. Currently it is price at $207 a significant bullish trend today I believe that the asset will continue it bullish form for about the next 48hrs.

Q3 : How to parse the token? (In this part you should preferably use the knowledge you have acquired in these weeks of learning at the academy, for example follow what I learned in my class or that of my teammate.)

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In this section, I will be using the TradingView platform to do my analysis. I launched my AAVE/USDT, set my time frame to 5 mins. After which I identified my resistance and support level on the chart because I know how important it is to identify these points. When I identified the resistance level, I noticed a breakout point at the resistance level. The price moved at and pulled back to regain momentum so I could place my stop loss take profit setup there.

However, I needed more confirmation from other indicators because I base my decision on that alone so I added the MA indicator with length 30. What we know from the lesson we have been taking is that when the MA indicator starts trading below the asset, it signifies an uptrend and when it starts trading above the asset it means a downward movement.

Source

When I added it to the chart it could be seen that the indicator is trading below the price of the asset. So it confirms the previous decision. I still needed to be sure so i added the RSI, which is good for determine oversold and overbought regions. The RSI was above 50 indicating an uptrend.

So I went ahead and place my stop loss take profit with entry at 207.7, a take profit at 213 and stop loss at 202.2. I then went straight to by Binance app on my phone to place the order see screenshot below.

Screenshot From Binance App

Q4 : My Plan to hold it for a long time or When to Sell?

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I’m a type of guy who doesn’t prefer to hold an asset for a long time. Buy for this coin I would change my mind. I believe in the next 48 hrs, the price the price of AAVE will be over $230. If you look at the historical statistics you should be also convinced.

If that doesn’t convince you, the technical analysis I did where I added about three indicators which all point to a strong uptrend will convince you to hold the asset for a while. It might dip a little we should FOMO, but relax else we might loss our capital.

Q5 : Do you recommend everyone to buy? and the reasons for recommending/not recommending.

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Of course I would recommend everyone to buy this asset. Because I Believe that currently it the best investment option in the market right now because it still has a bullish market still coming and we need to take the advantage right now or we will miss out.

I also believe that the one of the reason a lot of people are patronizing this asset because, users are able to choose from about 20 cryptocurrencies to borrow from or add liquidity into pool. And also another fantastic feature that makes user go in for AAVE is because of its flash loans that do not need any collateral. The fun fact is that it is the first to offer loans without collateral in the Defi platforms.

All these are reasons why I think we should buy the AAVE coin. When AAVE gains attention from the public as a result of these features, the price of the asset tends to rise. So I will call on people to try and buy the AAVE coin.

Conclusion

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In Todays trading contest, I explained the AAVE project, the goal that lead to its development which is to help users to borrow and supply asset into the liquidity pool without any central authority or involvement of a third party.

I also spoke about the consensus algorithm of the AAVE blockchain which is proof of work however plans are put into place to change to proof of stake, so it can handle more transactions per Second. AAVE can be exchanged in kraken, Binance, Houbi and other popular exchanges we have.

I want to thank prof for this opportunity to join this wonderful team I do hope we win.

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