Crypto Academy / Season 3 / Week 1 - Homework Post for @lenonmc21 || Cryptocurrency Trading in Exchanges

Hello Professor @lenonmc21. I am delighted to be part of your class for this week. Thanks for the excellent lecture. I have read through the course and here is my homework submission.

1. Define in your own words what trading is, what its function is and how it relates to the cryptocurrency market.

Trading is simply the process of exchanging goods and commodities or a service for money. It is the process or act of buying and selling of tangible items in that takes place at the market, supermarket, or shop/store in the street. Items traded can be food items, home appliances, kitchen utensils, building materials, stationeries, etc.
Not only tangible items are traded in the world today. People trade their knowledge for money by rendering services of what they know to others and getting paid. So trading can be looked at from every possible angle where money is exchanged for goods or human efforts.

The main function of trading or the benefit a trader sets out to achieve in business is to maximize profit. That is making more money. Other benefits of trading or function of trading is, it provides a platform for every trader to learn and improve. It also offers one the opportunity to meet individuals from all spheres of life. It helps one to go round the world either passively or actively.

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Trading as it relates to cryptocurrency is the process of exchanging one cryptocurrency for another through exchanges in a cryptocurrency market. It is the buying and selling of crypto assets with the aim of maximizing profit. People trade cryptocurrencies actively and passively. Those who trade cryptocurrencies actively are the ones that are always in the market monitoring it and making daily sales to make daily profits. Those who do passive trading are those that hodl crypto for future outburst of price. There are different methods of trading cryptocurrency. This are:

1. Spot trading
2. Margin trading
3. Future trading.

Cryptocurrency trading is not something just anyone can dabble into without grounded knowledge of how cryptocurrencies work and enough knowledge of at least an exchange. The trading methods listed above are only found in top exchanges like binance and Huobi and therefore should be studied extensively before attempting to use them for trades.

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2. Define and explain what are the tools used for trading ( Technical Analysis and Fundamental Analysis ) and at least one example of each. ( A screenshot is required ).

TECHNICAL ANALYSIS

Technical Analysis can be defined as indications or pointer provided in exchanges and crypto world in general to how cryptocurrencies movements occur. They are tools which are used to analyze the direction of cryptocurrency as they move. Technical analytical tools are used to determine the next action of a crypto market or the direction that crypto would move over a period of time. There are two major technical analytical tools used in cryptocurrency trading. These are charts and technical indicators.

Charts are simply graphical representation of the movement of a cryptocurrency. Graphs shows the upward and downward movement of crypto markets using green and red candles respectively. Technical indicators are also shown in the charts. Every cryptocurrency pair has its own unique chart that represents the movement of the crypto and the market situation at every point in time.

Technical indicators are also technical analytic tools for predicting the direction of movement of a cryptocurrency asset. Technical indicators are of different types. These includes **moving average, MA, Bollinger bands, relative strength index, (RSI), Exponential moving average (Ema), Moving average convergence divergence (MACD), etc. The above listed and several others are not only used for predictions of price in crypto markets but are also used in stock markets.

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Bollinger Bands

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Moving Average

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Relative Strength index, RSI

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FUNDAMENTAL ANALYSIS

Fundamental analysis is an analytical tool used in cryptocurrency also for the prediction of prices of Crypto market. Fundamental analysis basically have to do with general cryptocurrency news that may affect the price of market. With this news, one can know the next action to take while trading. The news can be on a crypto where one's asset is, it can be on general crypto news. Whichever one it is, the crypto market can be affected. These can result in the prices of cryptos all going up and can also lead to downtrend for a period of time. One has to look out for news on crypto in order not to be trapped and possibly go bankrupt in the midst of trading.

For example, if a big influencer of the price of Crypto markets wants to remove his assets from crypto, this is an indication that the price of virtually all the coins would go down. If this news is heard before hand, it would be cool for a baby crypto trader to pull out even if it would be at a loss.

On the other hand, if a a news is passed that the world richest man wants to invest 1/4 of his wealth in BTC,the price of BTC would rise very high after this transaction have been done. If the news if confirmed to be true, it would be cool that baby traders buy BTC and hodl in order to make good profits.

Cryptocurrency news from Binance.

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3. Name at least 3 cryptocurrency exchanges with the highest trading volume where we can buy our first cryptocurrencies and explain in your words the ways to buy cryptocurrencies on at least one of these platforms ( Do not use Binance ).

There are different cryptocurrency exchanges in the world today. These crypto exchanges are ranked according to their trading volumes and the services they offer. Out of the numerous crypto exchanges, the top three are:

1. Binance
2. Huobi
3. Coinbase.

How to trade on Huobi.

For this aspect of the question, I am just going to share part of a article from a friend who taught me on how to trade on Huobi with the article he wrote. That was when Huobi was celebrating her 7th anniversary last year.
I am just going to share what hewrote then for this part of the question because I didn't download Huobi, I only use binance.

Before you can trade on Huobi, you must have deposited the coins you wish to trade with using the wallet of the coin on Huobi. Trade involves buying and selling. Therefore this steps work for your buy and sell transactions on the exchange trade mode on Huobi
To trade on HUOBI exchange mode, follow these steps.

1.Log in to your Huobi account.

1. Click on trade to navigate to the trade page.

1. Select the currency pair you which to trade with.
2. Input the price you wish to buy or sell
3. Click the percentage of your coin you wish to use.
4. Click buy or sell.
   Then wait for the price you have set to buy or sell in either the buy or sell option prices to come up at top of their columns reading the same price at the top read per time.

Here is my entry.

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Special Mentions:

@steemitblog
@lenonmc21
@reminiscence01
@sapwood
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