Crypto Academy / Season 3 / Week 1 - Homework Post for [@lenonmc21] What is Cryptocurrency Trading and on what platforms can we do it by @jollybake

Hello steemit-crypto Academy scholars, i'm delighted to be here finally and writing my first post in this community
I want to specially thank professor @lenonmc21 for the great lecture taught, which is the sole reason why i'm here to participate and i pray that i meet his expectations.

^source

Questions 1

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

Ans. 1

Trading can be defined as the action of exchanging a valuable asset for another valuable asset or a legal tender.

functions

From the perspective of the assets being traded and/or the legal tender, trading helps in circulation.

From the perspective of the buyer, trading helps in acquiring the desired asset.

From the perspective of the seller, trading helps to realize the value of the asset.

From the above functions, we see that trading benefits the cryptocurrency market in the following ways

1. It helps to circulate the cryptocurrency

2. It helps buyers to acquire crypto currency

3. It helps sellers to realize the value of their crypto currency. Eg. If the worth of BTC is $34,000, it only by trading BTC that the seller can get the $34,000.

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 ).

Ans. 2

Q.2

Tools for trading include

Technical Analysis:

This is the study of price action in the past up till the present, for the purpose of making meaningful deductions and possibly predictions. It is mostly done using candlestick charts as well as many other technical indicators like MACD, MA, RSI, etc.

An example of technical analysis is studying the resistance and support levels on a candlestick chart.

Fundamental Analysis:

This is the study of events related to cryptocurrencies especially those which are announced in the media.

An example of fundamental analysis is browsing through twitter scanning for sensitive tweets especially from crypto whales.

Question 3

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 ( Do not use Binance ).

Three cryptocurrency exchanges includes;

1. Huobi global

2. Bitfinex

3. Okex

From the above listed i'll be explaining Okex

How to trade with OKEX

For a beginner, you must have completed verification before trading.
The first thing to do is login to your account on Okex, once the app is opened go to buy crypto.

Okex has three trading options

1. Quick trade
2. P2P trade
3. Book trade

Then go to quick trade, it helps the buyer to understand the equivalent of 1 USDT to NGN

After clicking on quick trade it shows Chinese yuan renminbi (CNY) and since i'm in Nigeria i have to change it in order for me to be able to purchase with the currency i have.

After changing it to Nigeria currency i noticed that if i want to buy let say 1 USDT in Okex, that it is equivalent to 411.50 NGN

and then I go to P2P trade to buy and it say price for 1 USDT is 510.50 NGN and the merchant 90.41 USDT available

and so I decide to buy 10 which is 5,105 NGN and then I go to buy USDT.

An option appear for me to confirm buying.

I used transfer method of payment to pay because if i don't pay within a particular time frame the order will be cancelled.

and then finally i click on I have made payment, next button

Conclusion

Crytocurrency trading is a platform for buying and selling crypto assets, so long as the person involve understands the procedures of trading cryptocurrency, knowing the various legit cryptocurrency exchanges and how to trade with them, trading becomes easy and loss free.