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

olachi (57)Beginner[2,3,4,5,6,7,9,10]in SteemitCryptoAcademy • 3 years ago

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

Trade simply means either you are buying, exchanging or your selling, it might be goods, commodities items etc as the case may be for the purpose of money.
You can say trade is needed and is of importance too to satisfy human wants, trade is not just for making gains but also creates way for providing services. Trade is a social activity, why because the society today is in need of continuous supply of goods increasing by the day but still never satisfies human wants. Trade improves living standards.

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When it comes to cryptocurrency trading, is the same as well but I will say cryptocurrency trading is the process of buying and selling of cryptocurrency or crypto assets through an exchange.
Cryptocurrency markets are not been controlled by any form of authority which means they are Decentralized. Rather they run on network of computers. You can buy or sell them through exchanges or have it stored in a 'wallet'.

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).

Technical Analysis

Technical analysis is making use of real-facts to try to forecast the future of the market. It requires having a look at the past records of the cryptocurrency involved, like the movement and it's volume. Technical analysis depends more on the occurrence than why it occurred. It's aimed at the supply and demand rather than the changes that influence it's price movement. Technical analysis as well depends on the aim that it's movement like pricing are not random rather it's price movement takes a long or short term trends. In some cases, if a cryptocurrency takes one trend, in due course it will take the opposite trend.
Example :

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Fundamental Analysis

Fundamental analysis is what traders use to judge and research on the fluctuations affecting the value. Fundamental analysis aims at the study of exterior elements, reality or influence affecting the price of the asset compare to technical analysis which aims at studying charts to forecast on how the value acts.
Example:

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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).