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

ANSWER

What is Trading?

Trading is the process of exchanging one item for another; it is the activity of purchasing and selling goods and services.
Trade enables consumers to purchase commodities and services that would otherwise be out of their reach.

The following are the primary trading functions:

• Realizing the value of the produced use value

• Relivering consumer products to customers Trade is responsible for the spatial flow of goods from producers to consumers.

• Preserving a balance of supply and demand

• Trade has a direct impact on production in terms of the number and variety of commodities produced.

• Decrease of distribution costs in the consumer sector through improved sales technology and information services

How it relates to the cryptocurrency market

The process of speculating on cryptocurrency future price changes, then purchasing and selling the desired coins via an exchange, is known as cryptocurrency trading.

Using an exchange to buy and sell cryptocurrencies
When you buy cryptocurrencies on an exchange, you are actually purchasing the coins, which will reflect in your wallet. To begin a position, you must open or have an exchange account, deposit the full value of the cryptocurrency, and keep the asset in your personal portfolio until you decide to sell.

Exchanges have their own high learning curve because you'll need to wrap your head around the technology and figure out how to interpret the data. Many exchanges also have limits on the amount of money you can deposit, and maintaining an account can be tactical.

All functions of trading exists in cryptocurrency, but in addition cryptocurrency trading only works in a degitalised world.

Define and explain at least the tools used for trading (Technical Analysis and Fundamental Analysis) and an example of each one. (A screenshot is required).

ANSWER

Technical Analysis

For trading assets, technical analysis provides far more important information and more accurate signals. Technical analysis is, after all, mostly a mirror of the psychology of traders' actions.
When investors or traders use technical analysis to determine the future price of an asset, they look at the current market price and where the trend is going through charts and market trends.

Technical analysis is the way by which a property's value can be predicted on the basis of historical price display data. Various levels are utilized for price reverse tools, mathematical and computer-based indicators, patterns of candlesticks, statistical data and graphical analysis figures.

^{The above image shows the Technical analysis of ADA/USDT. It reviews the past events and movement of prices, whereby using that to forecast what the future price could be.}

Fundamental Analysis

The best way to analyze the chances of quotes is to conduct a fundamental examination of a coin.
Fundamental Analysis is when investors or traders go beyond the current price to learn about a company's market supply, market capitalization, management team, profit and loss report sheets, and standard of operation before deciding on the company's assets' future.
The evaluation of fundamental elements is combined with a review of the state of the cryptocurrency market as a whole.
Favorable financial statements and increased sales of a company's products, for example, have a positive impact on the value of its stock.

^{The above image shows fundamental analysis of the top 10 cryptocurrency base on their marketcap, 24 hours volume, and price.}

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).

ANSWER

^{The above picture shows the top ranking exchange}

The top 3 Cryptocurrency exchanges according to the trading volume are:

• Binance
• Huobi Global
• Coinbase Exchange

How to buy cryptocurrency on Huobi Global

Log in to your Huobi Global exchange account or create an account at https://m.huobi.com/en-us/. From the home page follow this process:

• Click on the the wallet Icon
• Click on "FIAT". The middle option from the top on the next slide.
• It will bring list of various coins, click on your desired coin you wish to buy. (USDT was chosen here)

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• Click on "Fiat-Crypto trading"
• Click on "Quick buy or sell" from the top left corner of the screen.
• Put the amount of USDT you wish to buy
• Choose your payment method for the asset you want to buy
• Click on "Buy USDT"

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• Here, agree to terms of disclaimer
• Click on "Go to Simplex" and finalize Transaction.

Conclusion

Trading is good, but necessary things must be known in cryto trading because it seem more complicated than the normal trading we are familiar with. It is good to carry out necessary analysis before we buy any Crypto Assets, because this will aid making better decisions in the market.

Thanks to Prof @lenonmc21|| for this week's lecture