Steemit Crypto Academy Season 3-Week 1 Assignment| What is Cryptocurrency Trading and on what platforms can we do it?
Hello everyone, it is another great time to be here this week, today, I will be writing my assignment after reading through the @lenonmc2 class, "What is Cryptocurrency Trading and on what platforms can we do it?" Without wasting much time, I should begin.
Trading is many things to so many people. For novices, it requires the buying and selling of goods and services where the buyers pay the price the sellers are willing to sell. This definition is correct to some extent but not fully as trading goes beyond buying and selling of goods and services. In simple terms, it is defined as the buying and selling of financial assets which could be shares, bonds, indexes, raw materials, metals (commodities), forex (currencies), and cryptocurrencies.
With trading, a trader can buy an asset low and sell high if the price increases to make a profit, or sell at a high price to buy at a low price. While these are positive moves, a trader can also buy an asset at a low after which the price of the asset falls, and then the trader decides to sell the asset at a loss.
Cryptocurrency Trading is the buying and selling of crypto assets (coins/tokens/contracts). These coins could serve as shares of the company, or they serve as currencies that could be traded for gain. A very good example of crypto trading is purchasing a coin (BTC) for $10,000 at its low and selling at $20,000. This is a profit to the trader as he has $10,000 additional but when the trader buys the coin (BTC) at $10,000 only to sell at $5,000, there is a loss of $5,000 after the trade.
Technical Analysis
Trading is a matter of making decisions, which could be right or wrong, these decisions include Long, Short, or staying out of a trade. These decisions are made possible with the help of trading tools and one of these trading tool is the Technical Analysis.
Technical Analysis is the study of chart patterns, and the use of indicators (momentum, price) to determine the future movement of price. It is believed that the market follows patterns and traders analyze these charts to determine the next move of the market. Technical analysis is used to help traders determine when to buy, sell, take profit as well as take losses before they affect the capital of the trader.
A very good example of Technical Analysis is trading with chart patterns. There are several Chart patterns while trading with technical analysis but I will be showing the Falling Wedge which is a chart pattern that is used to determine an upward movement in the price of the market.
Fundamental Analysis
Fundamental Analysis deals with market/company macroeconomic factors that could determine the future movement of price. The factors could include economic and financial factors. Fundamental analysis is used to evaluate an asset movement via financial statements, news, geopolitical interference, and so on.
A very good example of how Fundamental Analysis affects the price of a cryptocurrency was when SEC filed a case against Ripple for selling unregistered securities. This news brought down the price of XRP drastically making it investors lose lots of money.
In other to name three exchanges with the highest volume where traders can buy their first cryptocurrency, I have to use coinmarketcap.com. then click on the exchange button, followed by Spot.
After the exchange page appears, I will be picking 3 exchanges with high volumes, they are Huobi Global, Poloniex, and Bittrex. Not all exchanges can work in all parts of the world.
Huobi Exchange
To purchase coins on Huobi exchange, first, visit the Huobi exchange website (https://www.huobi.com/en-us/)
After visiting the website, you need to log into the exchange. To log in, you need your email and password. After login, you click on Buy crypto
On the buying page, there are two way to buy crypto, one method is via Credit and Debit card, the second is via P2P market trade.
[Buying With Debit/Credit Card]
[Buying with P2P Market]
Poloniex Exchange
To buy cryptocurrency on Poloniex exchange, you also need to visit the Poloniex exchange website (poloniex.com)
Sign in to the exchange. To sign in, all that is required is an email and Password
After logging in, click on explore, then click on Fiat, to buy cryptocurrency with a card and directly from a bank account.
Bittrex
To buy cryptocurrency with Bittrex, you need to sign into Bittrex, then click on Instant buy and Sell
After clicking on Instant Buy ad Sell, you can purchase cryptocurrency directly from your bank account via debit/crit card.
Conclusion
Trading is very important in a financial market and cryptocurrency is a financial market. The lecture was a very interesting one and thanks to the professor, I learned a lot from the teaching.
Thanks for reading through my post
Wow. It was a wonderful presentation. I actually added more flesh to the what the professional taught from here
Thanks a lot my friend, I am really glad you found time to read through my post