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

Hello professor @lenonmc21. First of all, Thank you so much for sharing the lecture which was extremely informative for all the student. I am going to write my homework task After reading your lecture.

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

What is Trading

The trading general meaning is to buy or sell something. The buyer give money or something else in return of his shopping to the seller. The seller always sell his items for earning profit. The item can me the physical things, services or anything else. In simple word, Trading is the exchange of services or goods.

The place where this trading is performed between seller and buyer is known as the Market. Mostly in market, the rules are set by the seller. They determine the price of the item which they have. The customer have to buy that item in that fixed price.

The trading is performed between seller and customer. There is no third party. The seller sell his goods and buyer buy them at the prices fixed by the seller. This is person to person trading and no middle man is there to interfere.

Keypoints

• The seller always pay something in return of the items he buy from the seller
• The item can be anything like any item or service or crypto currencies.
• The seller always keep their profit margin

Crypto Trading

Now come to crypto trading. Crypto trading is trading of crypto currencies such as Bitcoin, ETH, Litecoin, Dogecoin etc. When you buy the crypto currencies for you fait currency or any else crypto currency is known as Crypto trading. The person from whom you buy is seller. He will charge in fait currency or any other crypto coins. This trading is also performed on decentralized platform. No middle man is involved. The trading is done without interference of third party.

Many platforms are there which offer the crypto trading. Such platforms are known as the crypto markets or crypto exchanges. Some popular are Binance, Bittrex, etc. These platforms are decentralized. No third party is involved during the trading.

Crypto market is volatile. It's mean that the price of the coins change in every minute. So there is always chances of profit and lose. You can earn the unexpected money in small duration. But similarly you may lose your whole money too if the market downtrend start.

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 ).

As i mentioned above that crypto market is volatile and versatile. The prices of crypto currencies are change every time. SO there is always the chance of earning profit or losing money. Sometime when you buy some crypto like Dogecoin and it's market goes up within one night. Then price will be rise and then you can earn profit by selling those coins in high price.

But if the market goes down. Then you have to sell your coins in low price while you bough them at high price. In this case you face lose. SO profit and lose are two main aspect of crypto market.

But there are soe tools which are used by the crypto traders to save themselves from any lose. They do proper research before investing money in any coin. They use the different analysis method to predict the future of the coin. Here i am going to explain the tools which are used by the crypto traders to predict where the market will goes next.

1- Technical Analysis.

Technical analysis is a tool which help us to predict the market moves. This tool is very effective and helpful to predict the market trend. The different factors are studied here to find out the market next move such as historical and statistical data, Reverse strategy, etc. We see the history of market and predict the future. Here we studied the demand and supply too. Like if the demand is higher than the supply, its mean that the price is high at this time, market is at its uptrend. It is the best time to sell your holded coin at the high price to earn the profit. But after every uptrend, there always be a downtrend. So it's mean that the market will be fell down next in future.

Example

In above graph, We can see that there is always a downtrend after an uptrend. The historical data and some other aspect help us in this tool to predict the market moves. The green candles are showing the buying and red candles are showing the selling of coin. We can see that there were small moves in market from march till mid of april. The market price some time raised and sometime fell down. AFter 15 of April. the market goes very high. The price raised to great extent. But the graph history showing that the after every uptren, there is downtrend too. So the market fell down after a high uptrend. Then again after Mid of May, the market goes up and after a week, it started feeling down. The market was at its downtrend again till starting of June. The whole of of june was in small trends of market. But history showing that, after every uptrend, there is downtrend too.

2- Fundamental Analysis

In simple wording, In fundamental analysis, the market next moves are predicted by the any statement related to the market from any worthy person, statement of any big share holder, tweet or anything related to that coin help us in fundamental analysis to predict the market future. The people who have big shares in coin can change the market trend at any time by their moves or simple by their words. When they say anything about the coin, the people act accordingly to that. If they say that they are going to withdraw their coins, it's mean that the market is going down, so people hurriedly sell their coins too. The positive news always result in market uptrend while negative news can cause of market crash.

Source

Here i m going to show you the example from China. A few time ago, when the china's government announce that they are not allowing the mining of any coin in their country. This news from china effect the market highly and the market downtrend start becaus eit was a negative news from market.

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 ).

There are a lot of crypto exchanges platforms which allow you mining of multiple currencies. But you choose the one which is suitable for you. There are some factors you need to keep in your consideration before going to choose the exchnage platform for transaction.

1- Speed

The platform which you have choose must be fast. The speed should not be slow so that you can perform your transaction fastly without wasting the time

2- Work in your country

There are some exchanges which are ban by some government to work in their country. The reason may be anything. But you need to be very careful before going to select any exchange. You need to make this sure that this platform which you choose for mining must not be banned in your country. It should work so that you can perform your transactions.

Multiple exchanges are working currently which offer you the mining of hundred of cryptos either for free or charge a very small fee. To see the highly ranked exchanges, we need to to perform some steps.

• Go to Coinmarketcap.com
• Click on the Exchange on the first row.
• A list of the exchanges with their rank will be shown.

Explain in your words the ways to buy cryptocurrencies on at least one of these platform

I am going to show how to buy the crypto currencies on Bittrex.

• First of all you need to login your account on Bittrex exchnage. You have to enetr your email and password while login process.
• After login proess. A new page will be appeared to you. You need to click on the "instance buy and sell" option.

• On next page which will be shown to you, click on the BUYNOW option. ENter amount you want to buy, select the payment paythod and buryyy, your process of buying the crypto is completed.

Conclusion

In this lecture, i explain the concept of trading, crypto trading and tools which are being used by the traders to predict the future of market. I suggest you to do a proper research before investing your money in any crypto because it will save you losing your money. When you use the indicators by combining with other, they give you more approperiate result. Then i mentioned the steps how you can get the exchnage platform which are working to offer yopu the mining of crypto right now in the world. Then i perform the purchasing of crypto on Bittrex. I again was to say thanks to @lenonmc21 for this amazing lecture.