Crypto Academy / Season 3 / Week 1- Homework Post for Professor @lenonmc21 - Topic: What is Cryptocurrency Trading and on what platforms can we do it. by @hibbanoor

Hello everyone. Firstly i would like to pay my huge respect to the @lenonmc2 for delivering the lecture in the most easiest and simple way. I am going to write my assignment after reading the class and doing some research on the given topic. So let's start.

Source

Question 1:- DEFINE IN YOUR OWN WORDS WHAT TRADING IS, WHAT ITS FUNCTION IS AND HOW IT RELATES TO THE CRYPTOCURRENCY MARKET.

In general term, the process of buying and selling the goods is known as trading. The goods can be anything like, mango, cloth, shoe, houses, ethereum, bitcoin etc. The seller sell the goods and buyer buy those goods and in return give something equally or more valuable to the seller. But know the world is getting digitize. So according to the current era the trading can be define as "The process of buying or selling the financial assets is known as trading. Now financial assets can be from any service, commodity to crypto currencies or anything. "

The buyer buy the goods or services at low price and sell it when market price goes up. Same is in crypto market. The coins are buy in bearish spot and sell in market bullish period to earn profit.

The place where trading is being performed is known as market place. Here the seller offer his goods and services to the buyer and get something more valuable in return.

A type of trading where the crypto currencies are sell and buy is known as crypto trading. There are hundred of thousand Crypto currencies in the market such as dogecoin, bitcoin, steem etc. The traders invest their money in those crypto coins, hold them till price goes up and then sell their investments to get the profit. You can either buy the whole coin, shares of coin or multiple coins. It's all up to you. For example, Bitcoin current price is $31,500. You can buy a whole bitcoin or some shares of it.

The place where the trading of crypto currencies take place is known as crypto market such as Binanace. Crypto marlet is more versatile. Here the price goes up or down every minute. The traders buy the crypto assets at low price and sell those assets when market goes up to earn the high profit. Some time the trader face the loss too. But if you do proper research before investing, you can save from loss of your money. For example, the good trader is one who buy the coin at low price, let's say ETH at 15000$ and sell that when price hit 25000$ to get profit.

There are multiple crypto market which offer you the trading of crypto currencies such as binance, Huobi Global etc. You can buy the crypto coin on these markets in return of your local currencies or for some other crypto currency. You buy the crypto coins when it is at its low price and when market goes up, you sell your holdings and get high profit. Buy always do research and analysis before making an investment.

Question 2:- 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).

Crypto market is highly versatile. You can get the profit but there are chances of lossing your money too. So you need to be very careful before investing in crypto market. There are many tools which help the traders to make decision when to enter in market and what is exit point when it's better to leave market. Here we will discuss two; One is Technical and other is Fundamental analysis.

Technical analysis is use to predict the future of crypto market. The traders use this tool to predict what is going to happen in crypto market. Historical and statistical data is being used in technical analysis to predict the crypto future. According to this tool, the past of crypto currency effect on the future of market. The price and movement indicators and chart pattern are used by the traders in technical analysis to determine what will happen next in crypto market. Charts and candle sticks are used in technical analysis.

The trader use the chart pattern in technical indicator to predict the future of crypto market. If the chart is showing that there is fall for two time in market and price is down, it's mean that the price will go up and market uptrend will start now. SO at that point, it is better to buy the coin at low price. The traders buy the coins in market downtrend and sell their invested coins at uptrend and earn high profit. Bearish period is good for buying coins and bullish period is best time to sell the coins.

The following chart is taken from the binnace crypto market which shows the technical anlysis of Bitcoin

We can see that there is always a downtrend after the market uptrend. Not trend can stayed in market for permanently. When price rise, the poeple sell their coins to earn profit and price again fall down. SO this cycle continue. So after seeing the above chart we can predict that in future the market will go up. There is downtrend for many time. So we can say that the market is its accumulation phase. The price is low so soon the market will rise. This is prove from the previous history of chart that the market is rising and falling continuously. The market is down trending right now. But soon it will go up again. If we use technical tool by combining with other tools, then it will give more accurate results.

In fundamental analysis, the economical and financial factors are consider for analysis the future of market. The economical factors are most important and focused in fundamental analysis. The fundamental analysis work on the thought that the specific decisions and occurrences effect the market price. The market trend up or down according to that specific decisions.

The fundamental analysis results help the investor to determine whether they should step in market or should leave the market, is it good time to invest or not.

The Bitcoin price is effected highly when Elon Musk tweet about that. Many people invested their money in Bitcoin.

Another example is there was a time when Ripple price fell because it was complained by the Security and exchange commission for offering the securities which are not registered yet. The ripple faces the extreme downtrend and the people who had invested in Ripple faced much loss. That was downtrend of ripple but it won the case and then work hard to stand itself in the well known exchange platforms. Now it is a well known coin among the investors again.

Question 3:- NAME AT LEAST 3 TRADING PLATFORMS WITH THE HIGHEST TRADING VOLUME WHERE WE CAN BUY OUR FIRST CRYPTOCURRENCIES AND EXPLAIN IN YOUR WORDS THE WAYS TO BUY CRYPTOCURRENCIES ON THAT PLATFORM (Do not use Binance).

Many crypto market are being used around the world which offer the investors to trade many crypto currencies. I am going to use the three platform which have highest trading volume and where we can buy and sell the cryptocurrencies.

I will use the coinmarketcap to determine the three platform which have highest trading volume. First of all go to the Coinmarketcap.

You can see that binance is at top. But as we can't use binance as per homework requirement, so i am going to select the highest volume crypto trading platform which i think are most easy and convenient for new users.

1- Huobi Global
2- Bittrex
3- Poloniex

Poloniex is well known platform which provide many crypto currencies on it to trade by the traders. The traders perform transactions easily and fastly. Now i will show you how you can buy the crypto coins over this platform.

1- First go to poloniex.com

2- Enter email and password which you set while registering yourself on this platform.

3- CLick on explore from manu bar and select Fiat from drop down list.

4- You can pay fees for crypto currency which you want to buy through VISA or or directly in bank. So buying crypto curency on Polonies is not difficult at all. Just a few steps are required which i mentioned above.

Bittrex is a famous platform which provide many crypto currencies on it to trade by the traders. The registration process is very easy and simple. This platform is fast and offer the traders to pay in credit or debit card for the coins they buy over this platform. Now i will show you how you can buy the crypto coins over this platform.

1- Login in Bittrex platform.

2- Click on Instant buy and sell option from manu bar.

3- A new page will be open where you would see the BUY NOW button.
CLick on that and pay fee for the crypto currencies which you want to buy using debit or credit card.

1- First go to https://www.huobi.com/en-us/

2- You need to login to access the main platform. If you don't have account then register yourself first.

3- Click on Buy Crypto button from manu bar.

4- It's up to you which method you choose for buying crypto. Credit card or Debit card.

I have learnt in this lecture how to do the technical and fundamental anlysis. You need to perform the analysis to predict what will be the future of crypto market. Only after that you should enter or leave the market. The decisions related to crypto market or depend upon the analysis. These analysis save us from loss of our money and increase chances of getting profit. Moreover i learn how to buy the coins using Bittrex, POLOniex and Huobi Global. Many thanks to  @lenonmc21 for delievering such an amzing and informative lecture.