Steemit Crypto Academy Season 3-Week 1 || What is Cryptocurrency Trading and on what platforms can we do it? || Done By @preshdan || 100% Power-Up
It is my pleasure to be a part of this class my reputable Professor @lenonmc21 and amiable fellow steemians. This week we are learning about trade in the cryptographic markets about how to buy and / or sell cryptocurrencies, using some of the best known Exchanges and Brokers in the entire industry.
The homework task questions are as follows:
1). Define in your own words what trading is, what its function is and how it relates to the cryptocurrency market.
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 ).
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).
Let us proceed
1).Define in your own words what trading is, what its function is and how it relates to the cryptocurrency market.
Trade is a fundamental economic concept which involves the buying and selling of goods and services, alongside compensation paid by a buyer to a seller, or the act of exchanging goods or services between parties. Trade can occur within an economy between an individual or organization that creates goods and services and one who trades money for goods and services. International trade permits countries to enlarge markets for both goods and services that otherwise may not have been readily obtainable to it. It is for this reason that a Chinese consumer can pick between a German, Japanese or American car. Due to international trade, the market inholds greater competition and consequently, more competitive prices, which transports a cheaper product home to the consumer.
In financial markets, trading makes reference or allusion to the purchasing and selling of securities, like the purchase of stock from stock exchange. Trade also is the process or act of purchasing, selling, or exchanging commodities, either at wholesale or in small quantities directly to customers, between countries or within a country, in addition, it is the act of selling, purchasing, or exchanging stocks, currency, or bonds, gold etc. Before it can be said that trading has effectively taken place, a buyer, seller and a platform for this two to transact must be involved. In most cases, the two key players may not necessarily need to physically meet before trading is carried out. Trading can be done electronically, digitally and in some cases through mobile devices.
Nowadays, by getting involved in trading, the efficiencies of different parties who are involved has been sharpened by ways of enhancing what they know how to do best and consequently making them readily obtainable to others who may have for need them. More goods and services are improved and moved to a significantly higher levels alongside buyers also placing more orders. The availability of buyers is directly proportional to the availability of sellers. This implies that if there are no buyers, there automatically no sellers and also, there is every likelihood that this may invariably affect the prices of goods and commodities available as a result of low demands.
Similarities exist on how trading is related to the cryptocurrency market in which exchanges are carried out between Crypto to Crypto and between Crypto to Fiats verse visa. With regards to the cryptocurrency market, there are quotidian trading which occurs in the exchanges that involves the conversion of tokens from Steem to USDT, TRX to BTC, purchasing of BNB as well as HODL for a short time before selling out at etc. A certain number is are found to place trades at a low entry positions and delay movement or action until when prices go up before egressing the same positions. In this case, such traders are referred to as Short term traders, while the Intermediate and Long term traders are all engaged in the system but each with varied exit positions. High market volatility exist in the cryptocurrency market, which makes it more out of the ordinary with regard other markets. Prices are observed to vary irregularly in such a way that some level of skill or knowledge is indispensable to efficiently engage the market, consequently giving rise to the need for some trade indicators as well as analysis.
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
The Technical Analysis is one of the major market indicators that has for a very long time assisted traders with the goal of engaging the trade more professional capacity or manner. The technical analysis is prepared to permit investors to to infer by extending known information and forecast the future prices of cryptocurrencies in the present. With consideration to the market trend behavior, they can't be predicted to ascertain at what time support or resistance would be strong or breakout as the case may be.
- FUNDAMENTAL ANALYSIS
Fundamental Analysis is another trade indicator that is considered imperative in providing guidance to the traders who may be willing to go greater distance in the cryptocurrency trading. This analysis totally turns him to the advantage of the white paper of the cryptocurrency project. The future of the token in place is contained in the White paper alongside plan of action in order to grow at every stage. In addition, there are traces of records already updated on each of the tokens which are required by traders to be able to ascertain how to engage the trade.
Information such as; how the activities of the coin flag bearer BTC is affected by seasonal periods, the effects of news and announcements made, as well if there is any whale out there are some of the fundamentals analysis to be taken into considerations.
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).
Exchanges are well known to be a de facto or digital platform that joins the activities of cryptocurrencies digital transactions. There is an indefinite large number of these exchanges observed in both the centralized and decentralized systems, however there exist a common purpose which is rendering all online transactions on cryptocurrencies.
CoinGecko app, presents about 479 centralized exchanges listed having Binance, Coinbase and Kraken as the top three (3) with the highest trading volume. With respect to their trading volume, I will be skipping the top 3 exchange.
Buying cryptocurrencies is expected to be a fundamental thing each beginner should get acquainted to for the purpose of increasing effectiveness in dealing with digital currencies. This is achievable with the use of Fiats (Legal Tenders such as USD, Cedis, Naira, Euro, Pounds etc), Peer 2 Peer, as well as via swap or conversation of coins to any desired options.
I will be explaining the exercise of buying cryptocurrency using Huobi exchange in of having Steem or TRX and needs the BTC. The expectation is to check for the pairs Steem/BTC in the exchange and make a swap of Steem to BTC.
Below are the steps or procedures:
- Open HUOBI app
- Click on Trade
- Choose the pair of interest for the transaction, I will be using Steem/USDT pair.. which implies that I will be buy USDT and convert it to Steem.
- Click on the Fiat.
- Click on the payment method and choose preferred method of payment (Bank transfer).
- Choose from the list and click the Buy button.
- I will be using 200USDT here. Therefore input 200USDT as the amount to be traded.
- The receiving amount 169.491525USDT.
- Click on order.
- Click on Pay icon to continue.
- For account details click on the contact on your top right screen.
- Transfer the required Fiat so as to receive value.
It would have been much easier and less stressful if this P2P process was basically direct from Fiat any ways, P2P is still a readily obtainable source in transacting cryptos.
Thanks to you professor @lenonmc21 for this lessons and homework task of the week.
Cc:.