Steemit Crypto Academy – Season 3 - Week 1 - Post for @lenonmc21

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

In the cryptocurrency space, trading is one of the major aspects when it comes to earning and making profits in cryptocurrency. Trading is basically the act of buying and selling of any cryptocurrency asset. When it comes to trading any cryptocurrency assets, exchanges play a very important role in enabling users, buy and sell cryptocurrency assets of their choice. Trading cryptocurrencies are done on exchanges which make it possible for anyone to trade (buy and sell) any cryptocurrency assets.

Trading cryptocurrency assets can be done in either centralized exchange like Binance, Kucoin, Okex, Coinbase, or decentralized exchange like Uniswap, Pancakeswap etc. In most centralized cryptocurrency exchange, there is what is known as an order book which is basically a list of open orders by buyers and sellers, on a particular cryptocurrency pair. When a trader goes to an exchange to trade, the trader has the intention to buy a particular cryptocurrency asset at low prices and sell at higher prices so as to make profit. The ultimate goal of trading is to make profit. A lot pf traders make use of different tools like fundamental analysis, technical analysis and risk management strategies that will help them make the most profit from the cryptocurrency market.

Define and explain what are the tools used for trading (Technical Analysis and Fundamental Analysis)

When it comes to cryptocurrency trading, there are tools that are used for trading so as to make the most profit. The goal of every cryptocurrency trader is to make profit which means that the trader aims to make accurate forecasting so as to buy low and sell high. Some of the tools used that can help in trading are fundamental analysis and technical analysis.

Fundamental analysis

Fundamental analysis is a very common tool that is used in cryptocurrency trading. Fundamental analysis has proven to be one of the most effective tools when it comes to trading any cryptocurrency asset. When using fundamental analysis in trading, the trader pays close attention to the project, the trader analyses the cryptocurrency volume and liquidity, team behind the project, what the cryptocurrency project is trying to solve in the industry, the number of good exchanges that it is listed, the news surrounding the project, partnerships, the cryptocurrency market capitalization, circulating supply of the cryptocurrency, total and max supply of the cryptocurrency and more. All these would help the trader to make better trading decisions. A cryptocurrency with a good fundamentals is good for trading because it means that the cryptocurrency has a high chance of increasing in price. Example of a good fundamental analysis is the listing on top exchanges.

Tweet - Coinbase list STORJ

Tweet Source

Tweet - Binance to list GYEN

Tweet Source

Technical analysis

Technical analysis is also a very common tool that is used in cryptocurrency trading. Technical analysis is basically is tool that is mostly used in trading for price forecasting and to determine the best entry and exit points so as to make the most profits. When it comes to technical analysis, traders look at price charts and make use of different technical tools and indicators to forecast price movements in the cryptocurrency market. When using technical analysis in trading, indicators such as RSI, MACD, volume, moving averages, to help determine the market trend. Technical analysis helps to determine support and resistance levels which helps traders know where and when to enter and exit a trade, and also helps trader know where to set stoploss. This type of analysis is very popular and common when it comes to trading any cryptocurrency asset.

Higher High and Lower Low indicator on the ENJ/USDT chart

RSI indicator on the DOT/USDT chart

MACD indicator on the BNB/USDT chart

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

When it comes trading or buying and selling any cryptocurrency asset, there are a lot of exchanges that anyone can buy and sell cryptocurrency assets. Some of the top cryptocurrency exchanges are Coinbase, Okex, Huobi are all very good cryptocurrency exchanges that anyone can buy and sell cryptocurrency assets. I will be showing how to setup an account on Okex exchange, how to deposit and buy cryptocurrency asset.

First, we need to signup on Okex exchange before trading

In the signup form, follow the process and fill in the required information to complete the signup process. Verifying your email in the inbox to complete the signup and login into your okex account.

Next is to deposit funds into the account so as to use that to buy any cryptocurrency asset. I will be depositing USDT

I will choose tron blockchain because of tron low transaction fees and fast transactions

After the USDT fund deposit is confirmed, it is time to begin buying any cryptocurrency. i will be showing how to buy ADA.

At the navigation bar at the top, click on markets

On the markets, different cryptocurrencies will be displayed, choose any cryptocurrency you want to buy and click on the trade button next to it.

Done, on the exchange, click on the buy section, input the price, input the amount of coins you want to buy, look at the total USDT value, click on buy to buy the coins

Conclusion

Trading is one of the major aspects in the cryptocurrency market and when it comes to earning and making profits in cryptocurrency. Trading is basically the act of buying and selling of any cryptocurrency asset. When it comes to trading any cryptocurrency assets, exchanges play a very important role in enabling users, buy and sell cryptocurrency assets of their choice. When it comes to trading cryptocurrency assets, fundamental analysis and technical analysis are very important tools used for trading so as to make the most profit. The goal of every cryptocurrency trader is to make profit which means that the trader aims to make accurate forecasting so as to buy low and sell at a higher price.

@lenonmc21