Crypto Academy / Season 3 / Week 1 - Homework Post for [@lenonmc21]

in SteemitCryptoAcademy3 years ago (edited)



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

Trading in simple world is buying and selling of of assets in the market and making profit on that assets is  called trading  e we can perform trading anywhere if we have some sort of acids in our hands we can do trading with that for trading there are stock markets people buy stocks and then sell them for profit that is also trading and people buy cryptocurrencies on the lower  price and then when the price goes up they sell it and make profit on that that is also called trading 

Trading in cryptocurrency is very famous nowadays mostly people are coming from the stock market to the cryptocurrency market for trading because of the price high volatility in stock market you will have to wait a long time for a stock to go up on the other hand in cryptocurrency market you don't have to wear that much for the price to go up and down there are people they make profit when the price go up and there are more people and they make profit when the price goes down everyone takes benefit from the price volatility and cryptocurrency is providing a very high  volatility in terms of prices and that's why mostly people are preparing cryptocurrency or stock market

 trading in cryptocurrency is very similar to all kind of trading you will have to sell something and buy something  let's suppose I have  100 USDT  and I invest that into   btc   and after 2 hours the price go up  and  e e i am in $10 profit  if I said that at that time then I will make $10 a profit so I had a successful trade now if I don't do that in the price goes down and I am in $10 loss and if I said there then I will be in $10 lost and successful trade

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



When it comes to trading it's not an easy job just like in stock market trading there use a lot of indicators and all sorts of Technical and fundamental analytics because it's very important to protect and to forecast the price otherwise you can have a huge loss and at the same time in cryptocurrency market we have to predict the price before it even happens for a successful trade and here we  use many kind of indicators Analytics for a successful trade

 technical analysis


 technical analysis is basically the reading of candle charts and analysing the graph of a cryptocurrency where it is going and for successful price forecasting you need to understand the technical analysis on a very good level even if you don't have that much idea about technical analysis you can still read the charts and see when the coin was up and when the coin was down there are many indicators in the technical analysis which are the traders used to 2 successful forecast the price

 if we look at the start of  ETH  you can clearly see that about 4 days ago it has a very huge dip it was about all time low in the last 5 months and if you look it the chat we can clearly see that now the coin is going to stabilize itself we can clearly see that the coin has a window FROM $2000 TO 2250$  Since many days it has been going up and down in this window since 3 days if we look at the background we can clearly see that we can trade in this window until there is a big crash for a big up it will remain the same and it also tells you about the timing when the price can go up and when the price can come down let me tell you something this is not exactly correct it just give you a little idea so never take this 100% series make so that you are 100% sure before taking any position

ETH/USDT PIAR

CHART

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SOURCE

 fundamental analysis 

Fundamental analytics is a very important analysis in the world of everything not just cryptocurrency but over our trading if there is a good news about a cryptocurrency then that is very good for that specific coin because that coin can go up let's suppose if there is a new update on a coin or if there is anything positive about a coin from the market over all market in outside the market also it can be a blogger it can be a news reporter it can be a movie actor a famous movie actor if there is anything good about the cryptocurrency it will affect the market in a very positive way and the prices can go up so you will have to watch out for this kind of news all over the world it

 example of fundamental Analytics

 today Elon Musk one of the famous billionaire of the world and a lot of people follow him he has been into Crypto since a few months for many years and recently  his tweets are making a lot of effects on the cryptocurrency market recently he tweeted about Bitcoin and the Bitcoin went up and then he again tweet about Bitcoin and that has a very negative effect on the Bitcoin and we saw a big crash in the Bitcoin now today he has tweeted about dogecoin and that end to a very positive way it means that it will affect dogecoin in a very positive way you can see the tweet below and you can compare the price from now to up to 2-3 days and you will see available in the dogecoin


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SOURCE


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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 ).


Binance

 this exchange is one of the best exchange there in the cryptocurrency ecosystem and this exchange has been number 1 since a long time and this exchange has the highest amount of volume when it comes to cryptocurrency and there are many features of this exchange that people like the first thing is that it's almost available in all the countries in the interface is very user-friendly that's why most people prefer this exchange over the others

 volume $17,366,365,329

Houbi  Global

 this exchange is one of the oldest and one of the best exchange is well many people prefer this exchange because of its faster and very affordable fees and this exchange comes on number to when it comes to the volume size after binance

 volume $4,452,799,249

Kraken

Another one of the best and famous exchange is out there in the cryptocurrency ecosystem with the very highest level of volume available and most people also like this exchange and it comes number 4 when it comes to the volume ranking of exchanges

 volume $1,019,146,976

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 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 ).


 if you are a new user and you want to get into the cryptocurrency ecosystem first of all you will have to find earlywood exchange for yourself  and then once you have your exchange you can deposit your money which we called Fiat money e it means dollars Euro and any other currency that you are holding you can deposit that through your credit card Visa Card and Bank directly to the exchange and then you can buy cryptocurrencies with that and you can start trading


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I will open my exchange remember for the Fiat deposit you must open this exchange on your computer it won't show you the option on your mobile app to make sure that you are on the desktop while you try to deposit through Fiat currency

Poloniex  exchange I open it and then I click on the wallet after that it will give me many options of deposit and there they will say bye with we heart it means that I can buy cryptocurrencies with my I dollar Euro and any other currency when I click on buy with Fiat then it will give me a Farm where I can just put my data and then I can easily by the cryptocurrencies that I want you will have to choose the cryptocurrency that you want and then you will have to choose the amount how much you want and then it will ask you about your card information that you will have to put and after that just simply click on buy and you will by the cryptocurrencies that will add it to your wallet automatically

 you can then change those cryptocurrencies into other currencies like Bitcoin and other cryptocurrencies that you want there are many other ways to do that but this one is the most easiest and because you are a new user it will be very easy for you to do that the other ways are a little difficult and you might find it very complex to do so 

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our task is so neat and written in an efficient way. I always try to read your tasks.

thank you so much for that

i feel like i know you

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