Repost | BNB/USDT Buy-Steemit Crypto Academy | S6W1 | Team Trading Contest Post for Crypto-Empires
Introducing the token for the day
The project I will focus on today The Binance Coin (BNB).
Launched in 2017, BNB is the native token of the Binance Exchange which is currently the biggest exchange in the world. The coin was originally launched as an ERC-20 token on the Ethereum blockchain however, it was swapped to the Binance Smart Chain mainnet in 2019 where it became the native token of the BSC blockchain.
BNB was sold at $0.11 during its ICO and has seen massive growth ever since. The coin had a total supply of 200 million coins that reduces thanks to its Burning mechanism. Every quarter, an amount of BNB is burned by calculating the general trading fees from the Binance Exchange. This burning will continue to take place until the total supply of BNB reduces to 100 million coins. The last burn took place on the 17th of January, 2022 where about 1,684,000 BNB were burned.
BNB was developed with the main aim of serving as a cheaper alternative for fees on the Binance exchange. Holders of BNB receive a discount on their fees when the trade or perform other activities on Binance.
Binance and Binance Coin were founded by Changpeng Zhao and Yi He. Some people currently behind the project include;
- Changpeng Zhao - CEO
- Yi He - CMO
- David Perez - COO
Others include;
BNB can be traded on Binance, FTX Gate.io, Huobi, KuCoin and Poloniex. For this task, I will be trading the coin on Binance.
Why I am optimisic about the project today
Even though I am interested in BNB, I am not optimistic that it would rise today. Even after the BNB burn back in January, BNB has been in a downtrend mainly because of the general crypto crash. However, I believe that the coin would rise within the week and so I would buy the coin with a Spot Trade so that I can realize the profits later in the week.
Looking at the daily chart above, we can see that the price is almost getting to a crucial support level that it had not gotten to since October. That same level served as a Resistance level back in July and the price has not gone below it ever since. The support level was tested earlier in January causing the price to briefly go back upward. If the price gets to that level again, it would either break it or bounce back again. I'm willing to bet that it would bounce back and go way higher than the current level.
Analyzing the Coin
I will Analyze this coin using the BNB/USDT crypto pair on TradingView just like I did above. I will not use any indicators for this analysis but just some simple price action.
The image shows a 15-minutes chart of the BNB/USDT pair. Opening the chart, I noticed that an inverted hammer had formed. Given the fact that the price is at really low lows, it might be a good spot to open a buy position. Before opening the position, I had to set take profit points at different resistance levels.
Next I went over to Binance to Buy BNB on Spot Trade.
Due to the fact that it is a spot trade, I will not be able to realize so much profits or losses for a few days.
My Plan to Hold BNB long or Sell
Even though I have placed some take profit levels in the trade above, I am very bullish on BNB. Studying the project, I can say that the project has some potential for the following reasons;
1. Reducing Supply
Binance says that it would burn BNB until the supply reduces to 50% of what it was originally. By simple demand and supply, we should expect the price of BNB to increase a lot as it becomes more scarce over time.
2. It powers the largest exchange in the world
Binance is the largest exchange in the world and it keeps getting bigger. A typical newbie in the crypto business starts his trading journey with Binance. Since BNB powers Binance, we can expect the coin to increase in demand and price as the platform becomes larger and larger.
3. Binance NFT marketplace and the Metaverse
With the rise of the Metaverse and NFTs, Binance has opened a marketplace where people can trade their NFTs for BNB and BUSD. This adoption especially in a sphere that has so much potential can cause the price of BNB to skyrocket in the future.
Would I recommend people to Buy BNB
Of course I would recommend people to buy BNB. The Coin has so much potential and has seen massive growth within a short period of time. The team behind BNB are very active and are really conquering the exchange market. The points I mentioned in the previous question are enough reasons to invest in BNB.
Conclusion
In this post, I have talked about BNB and placed a trade after doing some simple analysis. I have also stated my reasons for choosing the project and my foresight for it in the future.
Thank You!
Hi @abdu.navi03
Sorry to bother you but my repost from week 1 is yet to be voted and would expire in two days. Could you alert the curators for me whenever you’re free? I’d really appreciate it.
Thank you🙂