Steemit Crypto Academy Season 3-Week 1 Assignment| What is Cryptocurrency Trading and on what platforms can we do it? By @preshymukel

Hello Steemians, it's awesome to be here again this week. The lecture on ‘‘What is Cryptocurrency Trading and on what platforms can we do it’’ taught by our able Prof. @lenonmc21 was in deed superb. Dear Prof. @lenonmc21 I commend you for that wonderful lecture.

Here's my homework task.

Questions:

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 ).

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

What is trading?

Generally trading is simply the buying and selling of goods and services. The seller distributes goods and services to the buyer through the process of trading which in most times is done in exchange for money. And some cases trading involves trade by barter, people exchange their goods without the use of money. For example; I have one bag of rice which I'm not in need of and I need tubers of yam instead, I can simply look for someone who has tubers of yam and will want to exchange it with my bag of rice; in so doing we've traded without involving money.
Trading in the world of crypto is buying and selling/ exchange of cryptocurrencies.

Function of trading.

Trading function in the distribution of goods and services from sellers to buyers. It also function in the advertisement and promotion of goods and services.

How trading relates to the cryptocurrency market?

In the cryptocurrency market trading is very essential since it's the only way investors buy or sell their coins. In the cryptocurrency market people trade their coins in exchange with other cryptocurrencies or in exchange with fiat money and all of these takes place in an exchange which can be regarded as a cryptocurrency market. In the cryptocurrency market investors trade their coins depending on the price movement. For example; people tend to venture into buying a coin when the value is low and then sell it off when the value rises.

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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 ).

Technical Analysis

Technical Analysis is a trading tool used for forecasting of price movement in the crypto market. It involves the studying and understanding of chart patterns in order to evaluate the trend movement of stocks in the market, whether it will do well in the future or not before going into the trading market.
Some popular technical analysis signals are; momentum indicators, support and resistance levels, simple moving averages (SMA), and trendlines.

• Example of Technical Analysis;
  The chart below is an example of a Technical Analysis in trading. The chart is a falling wedge which shows a bullish pattern. The falling wedge enables traders who missed out to enter into the trading market.

Fundamental Analysis

Fundamental analysis is also used for price forecasting but it involves the evaluation of the coin\company's growth rate, the revenue of the company, the company's prospect and the turnovers.
Fundamental analysis does not put the market value of a currency into consideration rather it considers informations/news about the currency.
News about a currency can lead to it's fall or rise.

• Example of fundamental analysis;
  Dogecoin rises again following the support of Elon Musk concerning the update on how transactions are made on the cryptocurrency's network.
  
  Source

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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 ).

To know three cryptocurrency exchange with the highest trading volume aside Binance, I took the following steps;

Step 1:

I explored Coinmarketcap by visiting the website link; https://coinmarketcap.com

When the site opens, click on the three dash lines at the top right.

Step 2:

Click on exchange and then click on spot to know the cryptocurrency exchanges with the highest trading volumes.

• The three cryptocurrency exchange with the highest trading volume after Binance are;

1. Huobi Global
2. Coinbase Exchange
3. Kraken

HOW TO BUY CRYPTOCURRENCY USING HUOBI GLOBAL EXCHANGE

• You start by clicking on the login bottom to login into the Huobi Global Exchange using the app or official website (https://www.huobi.com/en-us/)
  When the site opens click on login.

• Input your login details such as your email or phone number and password, and then chick on login.
  

• Click on buy crypto.

• Select the cryptocurrency you wish to buy and click on it. In my own case I selected BTC.
  Then at the top right, click on USD to change to the currency you want to pay with.

• Select the currency you want to pay with (I selected NGN which is Nigerian fiat currency).

• Click on payment method and select the method you want to use for payment ( I used Bank Transfer).

• Select the person you want to buy from and click on buy.

• Input the amount for the total value of currency you want to buy and click on order.

• Make the payment of your currency by clicking on pay.

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Conclusion

Trading is very essential in every market. Trading is what keeps the Crypto World going, therefore it is important that every crypto investor/ trader get acquainted with the knowledge of trading.