Crypto Academy / Season 3 / Week 1 - Homework Post for Professor @lenonmc2 || What Is Cryptocurrency Trading And On What Platforms Can We Do It || by @humblesoul

It's a great pleasure to participate in this week's class and realistically, this weeks lectures has added more to my knowledge based on the cryptocurrencies trading and platforms it can be operated on. Thank You professor @lenonmc2 for the well-detailed lecture. Here is my entry based on this week's homework task.

Simply put, this can be referred to as the concept of exchange of commodities or buying and selling of goods and services between a producer and a consumer which result to the trade or exchange of assets such as currencies/cryptocurrencies or raw materials.

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FUNCTIONS OF TRADING

With the affect of trading, traders or buyers and sellers has the intense responsibility of their price tags for the commodities or goods and services available and can choice to exchange at their convenience without the interference of any third-parties.

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RELATED TO CRYPTOCURRENCY MARKET

The cryptocurrency Market is a decentralised platform which allows traders or exchangers to purchase or sell cryptocurrencies and store up in individual wallets. With the use of trading in the cryptocurrency market, prices can be speculated with the aid of CFD trading account meanwhile, CFD is the acronym of Contract For Difference.

MORE DETAILS UNDER CFD (CONTRACT FOR DIFFERENCE) TRADING

This trading offers vastly based on the global market, stock indices and commodities. Under this, a trader exchange (buy or sell) based on one financial medium without the cryptocurrency market outcome. For a stand to be acquired, a deposit of a trade with it small percentage that is base on it's full value would be necessary.
To run this CFD Trading, payment for it spread would be required, subscripting to the market data would be needed, charges known as CFD Holding Cost will be issued out, this can also be known as a leverage product or trading on margin

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Hence, the CFD (Contract For Difference) trading account allows the speculating of cryptocurrency prices when necessary without the interference of any underlying Coins. For example, if a cryptocurrency is found to be of more value at a particular period of time, a trader would chose to buy, stock-up and sell-off when due with the aim of gaining more values and reduce the risk of losing.

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)

In trading, there are concepts or methods that enable a trader in making decisions about investment and gives signal and tends as to the period or duration that are meant to sell or buy any cryptocurrencies in the market, Here are the methods for market analysis:

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TECHNICAL ANALYSIS

This deals on the study of volume and price, it's also the process of evaluating or identifying opportunities for trading based on what the charts offers with the aid of it indicator therafter providing it price trends or movements, signals or patterns which are back by it momentum along with the examination of the level of support and resistance.

In late 1880's, technical Analysis along with Dow theory was introduced by;
_ Charles Dow.

Under this, there are two types of approaches made available which are:

• Top-Down Approach
• Bottom-Up Approach

TOP-DOWN APPROACH
With this, the analyst inspects the stock more fully in a particular duration of time. For example, a trader would start by scanning through chart made available by the trends and movements regularly to check the peck of how its security is or if any necessary decision is needed.
BOTTOM-UP APPROACH
With this , stocks are check based on the market trends to ascertain when it would be of more value to sell off or to buy cryptocurrencies which might yield much value and gain with the decrease of lose.

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EXAMPLE OF TECHNICAL ANALYSIS

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With the Accumulation/Distribution Lines (A/D Line),the security of the money flow is assured therefore, if A/D is falling that shows in the daily range, the price is finishing in the lower portion which would then considered as a downtrwnd with negativity.
Additionally, when the price starts rising while the A/D begins to fall, that shows that the trend is in danger could cause a huge affect on if not goven proper attention same apply to when A/D starts rising and the price is trending at a low rate which would signify higher prices to come.

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FUNDAMENTAL ANALYSIS

Literally, this is the method by which a business financial status or statement are evaluated Or this can also be referred to as the process of accessing or reviewing an asset or stock with the mindset of predicting it's future price or influence.
Under this, analyst can purchase a stock or security that is wrongly tagged by the market for more profit which would later be recognised by the market and serve or add as more value and profit. This method of analysing consumes much time, however to reducd tbe time spent in analyzing, a paid or free screening service can be adopted, this would enable the investor, trader or exchanger to scan through the market in search of stocks that fits-in.

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EXAMPLE OF A FUNDAMENTAL ANALYSIS

Here is an analysis of a popular tech sector: Amazon.com Inc
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The chart above displays the growth that has been on the company, significantly, the growth became visible enough during the year 2015, as you can see below

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For the past four year, Amazon.com Inc had beaten an estimate consensus EPS (Earning Per Share) which shows that the company is balance when it comes to it's yearly expectations, as you can see on the chart below:
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MORE DETAILS UNDER AMAZON ANALYSIS

The diluted earnings per share of Amazon.com is $12.37 compared to it current stock price of $3,137.39 which is extremely low because of it high Price-to-Earnings (P/E) Ratio that is 91.88, whithin the duration of four years earlier mentioned, 40% has increased on Amazon stock price.
ThePrice-to-book Ratio (P/B) of Amazon is 19.03 meanwhile the book value per share that is $164.89 is used to divide the stock price of $3,137.39 this means that Amazon investors pays more which adds to the book value of the company.

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

To get an accurate and current exchange platforms, i took the following process:

1: Open My browser, and logged into https://coinmarketcap.com/rankings/exchanges/ and clicked on SPOTS in search of the highest trading platform

2: From the screenshot below, I found the following as been the highest in trading volume:

• Huobi Global
• Coinbase Exchange
• Poloniex

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I would be explaining one of the above exchange platform which is along with the procedures:

POLONIEX

1: Open my browser and logged into https://m.poloniex.com/ and clicked on GET STARTED

2: Am creating a new account, so i signed up with the following details below and clicked on Ok



3: I received a mail requesting my Confirmation and thereafter my account was activated


4: I logged in again in my account with my Email and Password



5: Webpage loaded, I Clicked on EXPLORE and FIAT to buy with my bank debit or credit card.

6: A new tab loaded and i fill in the amount or quantity i want to transact and click on BUY


7: I completed the following process and bought some cryptocurrencies within few minutes.

CONCLUSION

The cryptocurrency trading have a big and positive impact on the traders, exchangers or investor, because at most time changes apply to the market and the tip of gaining or lossing is found therefore with the use of the two market analysis mentioned above, a trader can be notified of when a decision as to investment is required or when a stock or cryptocurrencies needs to be evaluated. Thank You professor @lenonmc2 for this weeks class, i hope to see you next week and learn more from you.