Hello everyone to my entry on the first week of the third season of steemit crypto academy.

Introduction.

I designed this image on Snappa

I must say I am very happy to be part of this class as I have learnt a lot from this week's lecture on "What is Cryptocurrency Trading and on what platforms trading can be done".

I would now be presenting my solutions to the questions asked.

What Is Trading, It's Function And How It Relates To The Cryptocurrency World.

source

Trading can mean a lot of things. We trade in our daily lives with one other. So in general terms, trading is the act of buying and selling goods or products.

For example, I could give my brother my shirt for his shoes and that is a form of trading or I could go to the market and purchase a carrot by exchanging a fiat currency like Ghanaian cedis for the carrot.

A trader can buy an asset at a certain price and set a selling price intended to make profit. Sometimes certain occurrences do not allow traders to make profits but make losses instead.

We can trade online or we can trade face to face. There are so many online trading platforms now that trading online is almost replacing face to face trading.

Another form of trading involves the trading of cryptocurrencies which I would explore in the subsequent paragraphs.

What are the functions of trading ?

• Trading helps people or buyers to acquire certain desired assets.

• Trading helps sellers gain income to improve their living.

• Trading in cryptocurrencies helps investors acquire cryptocurrencies like bitcoin, ethereum or steem.

• Trading helps crypto investors make profit on coins bought over long periods.

Trading like I said above is exchange of goods and products or the buying and selling of items of interest.

Cryptocurrencies were introduced to the world in 2009 and have since ben part of the trading world. With the concept of exchange, traders or investors in the crypto world exchange fiat currency for digital assets like bitcoin and other cryptocurrencies.

Traders who already hold cryptocurrencies can also exchange those coins for other coins in what we call crypto crypto swap or exchange.

Normal trading, that is not crypto trading deals with intermediaries but most crypto trading is done without third parties or intermediaries. Trading without third parties is the main goal with which cryptocurrencies were introduced with the aim of making transactions very fast.

Trading in cryptocurrencies can be very tricky. This is due to the fact that they are highly volatile and as such we are often advised to trade with money we are comfortable losing.

The cryptocurrency market is highly volatile like I said above which is not the case in the normal trading market. In the normal trading market, the selling price is set by the seller to influence the cost incurred and make profit which can be bargained.

But in the crypto market, because the values of the cryptocurrencies are not really known, I can buy steem for example at 1$ at 3 am today and you can buy it at 0.5$ at 3 pm the same day. Both of us who bought steem at those prices could later sell steem at 1.3$ .

With this, you that bought steem at 0.5$ would have made more profit than me who bought at 1$ assuming we bought the same amount of steem or with no significant difference.

They are so unstable and can make a person rich when properly invested in.

Tools Used For Trading ( Technical Analysis and Fundamental Analysis ).

To effectively trade in cryptocurrencies, it involves making a lot of important decisions which could end up being long term or short term. These decisions could end up being right or wrong and so to minimize the risk of making wrong decisions, it is necessary that traders study chart patterns, make analysis and study graphs.

Methods to effectively trade and reduce the risk of loss include the use of technical, fundamental analysis and others. For the purpose of this task, I would be elaborating on the fundamental and technical analysis.

Fundamental Analysis.

Fundamental analysis is used to do analysis on asset trends or movements.

Fundamental analysis include macroeconomic or economic factors that can affect the prices of assets. These factors also involve financial statements from very influential and trusted persons or companies that can have positive or negative effects on the price of assets.

Examples of fundamental analysis are statements from people like Elon Musk, Joe Biden or other very prominent people. Positive statements from them could see a rise in the value of assets they are talking about and negative comments could see their value decrease significantly.

An example of this is when Donald Trump publicly tweeted in 2019 that he wasn't a fan of bitcoin and other cryptocurrencies because they are highly volatile and unregulated.

This statement saw a significant drop in the value of bitcoin to about 10%. Because BTC is the mother of all crypto coins, it's decrease in value usually sees a drop in value of other coins and this was no different.

Other coins including Ethereum followed suit.

Below is the statement former president Donald Trump made

source

Other examples of fundamental analysis is the current ongoing court case involving Ripple.

News that Ripple was being sued saw a 25% drop in its price value but with the current case looking like its in the favor of Ripple, its price could go high when Ripple wins the case.

So knowing information like this is very good because it would influence your decision and help you minimize loss.

Technical Analysis.

Technical analysis involves the use of chart, graphs, indicators, among others to determine future price of assets. This study of charts usually involves studying history of finances.

It is known that there is really no right time to "enter" or "exit" a trade but using the technical analysis can help to give some degree of accuracy in the time of entry and exit.

There are several technical analysis methods which include using the bullish and bearish trends, using resistance and support levels, using the elliot wave principle, the falling wedge, among others.

source

Three ( 3 ) Cryptocurrency Exchanges With The Highest Trading Volume Where We Can Buy Our First Cryptocurrencies.

To get the cryptocurrency exchanges with the highest trading volumes, I opened coinmarketcap.com. I then clicked on exchanges and selected Spot.

I looked through the exchanges and selected 3 with high trading volumes. These are;
huobi exchange, poloniex exchange and bittrex.

Houbi exchange:

Poloniex exchange:

Bittrex:

How To Buy Cryptocurrency On Huobi Pro Exhange.

An inportant point to note is that the huo-pro wallet should be created and verified to trade successfully.

Since I'm on steem I earn steem and trx tokens so to buy my first other cryptocurrency, I followed the following steps.

Step 1: I transferred 10 steem to my huobi-pro wallet from steem wallet.

First, I logged into my huobi-pro account and clicked on deposit from the homepage

I searched and clicked on steem.

A memo and wallet address were displayed which I copied

login to steem wallet, click on the drop down arrow on steem and select transfer

I entered the wallet address, amount of steem to transfer, memo and clicked on next.

I confirmed that the details were right and clicked on ok

I keyed in my active key and clicked on sign in

Step 2: I logged again into huobi-pro wallet and click on balances.

Step 3: I searched for and selected steem.

Step 4: A new page opened and I clicked on the pair I wanted to trade in. Over here, you can trade steem for only USDT,BTC and ETH so you choose the pair you want depending on what you want to buy. I selected STEEM/BTC pair.

Step 5: An order book was displayed where I had to place my order. I opted to use the limit order and entered the amount of steem I wanted to sell in the sell column and clicked on sell.

**Step 6: My order was registered and successfully completed. I went back to balances and my new balancw was updated with my 10 steem equivalent BTC.

This process of buying btc with steem is termed spot trade.

Conclusion.

I would like to say thank you to prof @lenonmc21 for this informative lecture. I have learnt that trading is very important and trading in general is connected cryptocurrency trading.

Also, I learned about fundamental and technical analysis of trading.

I also learned how to buy my cryptocurrency from the huobi-pro exchange through this lecture.

Thank you