I am really glad the academy is back and this lesson is really a beautiful one, I am @kelechisamuel and this is my homework post for @lenonmc21
Define in your own words what trading is, what its function is and how it relates to the cryptocurrency market.
This lesson is indeed an excellent eye opener on trading concepts in the crypto currency world basically and also factors responsible for a sustainable trade and better knowledge of the market.
To the average man , we could define trading as an exchange of goods or services between two or more people , with goods considered as feasible products and services as digital or non-feasible products. Trading in other words refers to actions taken by traders or users of a service to enhance profit , since no man's wish is a loss in every trade, meaning that buying or selling done in a trade is always to gain in otherwords, if a trader sells , he has in mind to sell at a high price and wishes that the price gets low while when he buys again hopefully .
Therefore we see trading as every step taken by traders to exchange commodities or services for profit reasons .
The function of of every trade just like I stated in the paragraph above is to enhance profits since it is not the perception of any trader to make a loss ie losses happen by chance therefore trades are made for profits
They could also be avenues for competition creation and diversity in the markets since everyone loves to buy in a rising market and sell in a falling market .
We understand that Cryptocurrencies are not stable in value , even the coins know as stable coins , are not static in value instead they just increase or reduce gradually .
This brings up the concept of trading in the crypto currency market.
Since coins rise with time and fall with time too , traders understand that people who buy at low prices can sell at high prices too and vice versa therefore making every market condition , a channel to benefit from.
Therefore the appropriate scenario in a market which is buying or selling could be seen as the trading which every rational trader does to improve profits. For example , look at this Ripple chart , in less than 24 hours , the market was almost half down which would yield heavy profit to any trader who hit on the sell option earlier
The lesson , more so gives understanding of steps that have to be handled before trades can go on ie things a trader must consider before trading on the market being the ;
Fundamental Analysis and
Technical Analysis
Fundamental Analysis ;
The fundamental Analysis gives entail on the study of market related news and knowledge of them , previously , now and even in the future ie a thorough investigation into every information about the crypto assets including it's backings and it's valuation
This basis gets stronger as time goes on as every currency and platform seeks to make their projects more stable and increase their market cap therefore news of such tend to increase or decrease general price level in the market .This fundamental Analysis makes use of the coin turnovers , gain margins , earnings etc to guess the future growth and development of the asset
This analysis is what helps experiencefilled traders to know that even when crypto assets are under valued in the short run , the long run brings the correction out.
For example on March 24 2021 ,Business Mogul and One of the richest men in the world posted on Twitter that Tesla could be bought with Bitcoin , and in the next month bullish trends were already over the place .
Any trader who used a fundamental Analysis could have made it big in the profit returns
source- Technical Analysis ;
Every digital trade be it forex , crypto etc uses a market graph which most times are studied and followed properly leading to the concept of technical Analysis . Here we consider market positions utmostly , looking at where prices tend not to go below and above ie the Support and Resistance factor.
Better put,we see previous market information , basic price and market cap /volume to be a considerable factor for these deductions
We deduce this particular analysis from the market candle sticks that get greenish when they are bullish and reddish when they are bearish we see how the market tends to move and draw conclusions from there.
For example in the past months , we see Bitcoin's support and Resistance levels to be closely related and in other words every trader who would want to place a trade now would consider little gap margins in the trade placement ie would assume Bitcoin price , being on the close margins of 45 million Naira to 48 million at it's highest.
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 ).
There are several cryptocurrency exchanges with high and rising market volumes and the highest are as follows ;
- Binance
- Huobi Global
- Coinbase Exchange
Here we'll be considering the HUOBI GLOBAL EXCHANGE :
The Huobi platform could be seen as a very secure digital platform for purchasing , retailing ,trading and keeping of Cryptocurrencies with motives of creating an open source financial system for everyone and exchanging crypto currencies too on the platform . This platform is one of the most trusted too on the networks and popular too, amassing a very huge market volume
Now following the below steps would lead to buying or selling on the huobi ;
If you have an account you log in to the huobi platform but if you don't you can sign up
On the upper left hand side ,there is an icon for buy/sell crypto,you tap on it and click on it, it will refer you to the quick buy/sell page
*Here ,you write in the amount you wish to buy or sell in crypto Currencies or just your legal tender
- You click on the payment method you wish to use eg debit card ,USSD etc
Finally there is a preview buy/sell field there to re-confirm the purchase or Incase changes are to be made
Finally you click buy or sell to finalise the transaction .
CONCLUSION
The concept of trading is seen in our everyday life as it relates with our normal and usual means of survival
As related to the crypto field the graphs and all trading mechanisms needs to be understood and carefully examines to avoid an unbearable loss
There are many trading platforms, I advise you check out which is easier and better for you to understand,
Thank you all for reading
Cc
@lenonmc21