Hello, professor @reminiscence01. Thanks for the lecture, it's nice having your lecture.
Here is my homework task.

Spot trading

Spot trading is a type of trading in which a trader by cryptocurrency and holds it until the price rise/appreciates before selling to make a profit.
Spot trading involves buying and holding cryptocurrency, it involves less risk of trading.
Both professionals and beginners can involve in this type of trading as involve a lesser degree of risk and the risks can also be managed and control.

Advantage of spot trading

The first advantage of spot trading is that the trader has access to their investment at all times of trading, whether the market is favorable or not.

Secondly, the traders can manage their risk at all times of trading whether the market is favorable or not because they are in control of their assets as they can decide to hold or sell.

Disadvantages of spot trading

Spot trading can cause a trader to sell at a loss if the cryptocurrency is bought at a high price. This means that when you buy at a high price you may end up selling at loss due to the volatility of the cryptocurrency market.

Margin trading

This is a type of trading in which the trader or investor has not to have enough capital for trading which leads to borrowing of funds from a third party in other to have higher purchasing power or ability.
The trader is deficient in enough capital in this type of trading. This is done to make a higher profit because in cryptocurrency trading the higher your capital the higher the tendency to make a huge profit.
This type of trading is mainly good for professionals and not beginners.

Advantages of margin trading

Margin trading allows a trader to purchase Cryptocurrencies beyond their capital level or power.

The trader can easily make more profit than expected with the borrowed funds rather than the initial capital.

Disadvantages of margin trading

• Traders also have a higher risk of loss in this type of trading.
• As this is a borrowed fund to recover the loss may be very difficult for traders.
• Loss can lead to depression and health issues like high blood pressure in traders as this is a borrowed fund (especially for beginners)

Futures trading

Futures trading is a type of trading that involves a professional trader analyzing the market by taking the advantage of the up and down movement in market price.
The trader will have to predict the Future price in the market in this type of trading, the trader can either long (buy) or short (sell) when the trader knows the movement in market price (rising or dropping)
In this type of trading, the trader doesn't purchase the asset but future contracts in which the price is pegged with the value of the asset.
This type of trading is mainly meant for professionals that can manage risks even if losses occur on the other way round and not for beginners. Although beginners which are interested and can bear little risk of loss can get involved with low leverage, this is not always advisable for beginners in cryptocurrency.

Advantages of futures trading

• Huge amount of profit can be realized in a very short time.
• Trader can make 100℅ investments within a short time or single trade.
• Futures trading provides hedging which can protract the portfolio of a trader even when the prediction price is not favorable.

Disadvantages of futures trading

• Trader can lose the whole capital in a short time or single trade.
• Traders can not purchase the underlying cryptocurrency asset.
• Account can be liquidated in futures trading because of the higher degree of loss.

THE DIFFERENT TYPES OF TRADING ORDER

Some cryptocurrency trading order helps the trader to enter and exit market, by this the trader can manage risks conveniently.
Trading order is divided into three majorly;

• Market order
• Pending order: this is subdivided into, Limit order, Stop- limit order, and OCO orders
• Exit order, is also categorized into two: Stop-loss order and Take-profit order

Market order

This is a type of trading order that enables a broker or exchange to carry out position execution instantly at the present market price. The order placed in the order book is executed instantaneously at the current price.

Pending trading order

In pending trading orders, traders can execute their position when the market moves to a certain range. Traders can place both buy and sell orders when they have made proper market analysis.
As listed above, the following are the types of a pending trading orders;

• Limit order; This is a type of order that is pending when a position is executed at a specific price. In this type of trading order, a trader can open a position to buy at a specific price he thinks the market price is favorable for him.
  Trade will always be executed at the specified price and not above or below.
• Stop-limit order: Stop-limit order is a type of pending order in which traders can place a limit order when a stop price is reached.
  A Stop-limit order can be used to place a buy limit when a stop price is reached.
• OCO order: This is known as one cancels the other. In this type of trading order, a trader can open two different orders in which as soon one of the orders opened is executed the other one is canceled.
  This type of trading order enhances traders to evacuate possible mistakes/risks in the market.

Exit order

As listed above, the Exit order is divided into two:

• Stop-loss order: This is a type of automatic trading order that a trader place to exit the market When the market is not in favor of the trader. This usually serves as a protection to the capital of a trader, it prevents the capital from crashing when the market dips.
  This type of order can also be set with a market order and pending order as the case may be to prevent further loss of the trader.
• Take profit order: It is an order that is automatically placed by a trader to take profit when the market is alongside the predicted analysis of a trader.
  The position of the market is closed with profit automatically when the price reaches the set profitable level.
  it can also be set with a market order and pending order to take profit when the market is in favor of the trader.

How a trader can manage risks by OCO order

The OCO ORDER is a very good method by which a wise trade can manage its risks adequately. The ICO order provides the opportunity for a trader to set a length or limit at which market is executed in either direction of the market movement ( rising or dropping). Especially during unfavorable market movement, a trader can easily set a stop limit when using an OCO order and can also set a sell limit on favorable market movement.
let's take an example below:

From the example, above I make use of OCO order, in which BTC/BUSD is already moving towards a resistance level of $57000, so I set a sell limit of $57000 once it's close to this level.
But to prevent a drastic price drop, I also set a stop limit of $52000.
By using the OCO order I can easily minimize my risks because once the price reaches the set sell limit the position will be executed and the set stop limit will be canceled. Also if the market price drops, the loss will stop at $52000 as a set and the ell limit will be canceled.

Open a limit order on any crypto asset with a minimum of 5USDT and explain the steps followed. (Screenshots needed from any cryptocurrency exchange).

Before opening the limit order, I search for the coin I intend to buy by typing the name of the coin in the search box under the spot "Dogecoin".

Then I click on Dogecoin to set a buy limit of
0.2300 with 10.35$ which will buy 45 Dogecoin at the set limit price.
The current market price is 0.2395.
By setting this limit order I will be able to buy more coins than the current price.

USING A DEMO TRADING ACCOUNT (eToro)

I open a demo account by download a crypto app called 'eToro' with a maximum demo balance of $100000.

Why you chose the crypto asset

I choose to trade BTC because it is the whale in the world of cryptocurrency, it controls all other cryptocurrencies' value( appreciation and depreciation).
More also base on my analysis BTC has been up for some days rising above $60000, so the is a great probability that it will certainly drop down as the week goes.

This can be confirmed from my screenshot below, I'm already on loss just a few minutes after the market is executed.

Why I choose the indicator used:

I choose the MACD indicator because it is me in seeing the trend direction and the momentum of the trend.
This type of indicator has two lines, the MACD line, and the signal line.
When the MACD line is below the signal line it indicates that the price is falling and when it is above the signal line it indicates that the price is rising.

By this indicator, I can make a good analysis of the market.

The exit order

On the crypto demo account, I used, $100000 USDT is available for trading, so I invested $5000 on BTC. The exit order is as follows as it is shown in the screenshot below.
Take profit minus the invested amount: $4510.
Stop-loss $2498.51

Thanks for reading through.