Steemit Crypto Academy Season3week 1 Homework Post for Professsor @Lenonmc by @Nikoyana.

Good day steemians and a special regard and welcome to our new professor @lenonmc21 and thank you for this amazing lectures.

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

Trading in English term means exchanging goods of equal value, but when we relate trading to monetary terms trading is the buying and selling of goods, services or assets by either receiving or giving a currency for the value of the goods, service or assets.

The function of trading in cryptocurrency market is that it allows cryptocurrencies to be bought and sold via P2P TRADING [PEER TO PEER], without trading cryptocurrencies cannot be exchanged among peers or crypto traders. Trading brings a medium for exchange in the crypto market which enables a trader sell any cryptocurrency to earn fiat currency or buy cryptocurrency with fiat currency.

2]Define and explain which are the tools used for trading (Technical analysis and Fundamental analysis) and at least one example each.(Screenshot is required).

Firstly technical analysis is the use of chart patterns, indicators, drawing tools to indicate or predict the future movement of crypto assets in order to make correct trading decisions, technical analysis helps the trader to know the point or zone to enter or exit a trade.

Tools for trading technical analysis

1]RSI [relative strength index]
2]MACD [moving average convergence divergence]
3]Average directional index.

MACD: was developed by GERALD APPEL in 1970, the macd consist of two lines the macd line and the signal line which are located beneath the chart. The macd line responds quickly to price movements whether uptrend or downtrend while the signal line takes time to react to price movements, the signal line is smoother and slower than the macd line, there is histogram chart located between the macd and signal line. The histogram bars turn green which means the macd line is above the signal line and turns red when the macd line is beneath the signal line also the larger the space between macd line and the signal line the larger the bars of the histogram.
When macd line crosses below the signal line it indicates downward movement of prices and when macd crosses above the signal line it indicates upward movement of price in the underlying asset.

The macd line is the blue line while the signal line is the orange line

Average directional index: was invented in 1978 by J. WELLES WILDER and recommended 14 period setting for adx line and 14 default value for both +D1 AND -D1.
Average directional index determines the strength of a trend whether upwards trend or downwards trend, the higher the line of the adx the stronger the current market trend and the lower the adx line the weaker the current market trend, it has two directional indicators known as positive indicator +D1 and -D1 negative indicator. +D1 shows the degree at which the market is moving upwards and -D1 shows the degree at which the market is moving downwards.

Support and Resistance: support and resistance levels or zones is the level traders decide whether to buy or sell in a trade, that is entry or exit point. Resistance level which is known as the ceiling price is the level at which traders decide to sell their asset because when price reach this level it indicates increase in price or concentration of supply, the tendency of falling is higher and the support level is the level or zone traders tend to buy assets because when price reach this level that is decreasing, the tendency of rising is higher, at this level there is higher demand which tends to push price higher.

Fundamental analysis: is all about making a thorough investigation about crypto asset or project in order to derive the intrinsic value and invest, fundamental analysis investigation involves gathering information about the crypto asset company, market capitalization, development team, etc.

3]Name at least 3 cryptocurrency exchange with the highest trading volume where we can buy our first cryptocurrency and explain in your word the way to buy cryptocurrencies on at least one of these platforms.

Any three trading platforms
1]HUOBI GLOBAL
2]COINBASE EXCHANGE
3]KRAKEN

HOW TO BUY CRYPTOCURRENCY ON HUOBI
log into your huobi account and click spot trading

step 1 click buy crypto

Step 2 click on p2p market

Click on asset you want to buy

Fill in the amount

Click confirm

Cc
@lenonmc21