Steemit Crypto Academy | Season 3-Week 1 - Cryptocurrency Trading | Post for @lenonmc21

I am writing this post in response to the assignment task given by the professor @lenonmc21 , I really enjoyed, understood very clearly and really appreciate and thankful to you for your work for the steemit community .

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

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Trading means buying and selling of goods and services following the mutual aggrement between buyer and seller. Trading facilitates the users to buy and sell or exchange different kind of assests , goods and services, it also includes digital assets like Bitcoin, ethereum, steem etc. Trading is not only limited to physical products, it can be anything like digital assets, cryptocurrencies, stocks, shares , bonds , forex etc. There are different kind of marketplace available or designed for specific kind of assets like for shares and forex there is broker and their platform, for cryptocurrency trading there are crypto exchanges, for stocks and bonds there are stock markets where all trading activities are conducted. Specially Trading is related to the financial markets.

The main function of trading is to help the users to buy or sell financial assets freedomly by providing a marketplace for users and provides an opportunity to access the financial markets, assets and financial products . Traders trade on different trading platforms in financial and digital assets to grab an opportunity of making money . Traders buy and sell assets as per their interest and requirement.

Trading is related to the cryptocurrency because there are always 2 parties in trading; one is buyer and another one is seller. Buyers can only buy when sellers are there , without seller a buyer cannot buy any asset. And Vice versa the thing is same with the sellers as well. So there should be both parties and there must be a platform where buyers and sellers can exchanges their assets . So, same like other financial markets cryptocurrency market is related to trading. From trading platform we can exchange or buy /sell our digital assets to/from buyers and sellers. In this way trading is related to the cryptocurrency and all other financial markets as well. People trade for profits following buy low and sell high strategy. So simply buying and selling activity is knows as trade or exchange which we do in cryptocurrency and crypto exchanges.

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

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• There are 2 main tools and techniques which is used in trading and they are Technical analysis and Fundamental analysis .

Technical Analysis

Technical analysis is basically a bunch of tools used in trading. These includes reading of candles and chart formation/patterns using different kinds of tools and indicators and which provides information about the market condition and price movements . Technical analysis helps the traders to identify and determine the current market scenario and probability of future moves. Technical analysis helps the traders to minimize the loss and maximize the profits by providing ideas about market condition and where to buy and where to sell .

I am showing the chart of BTCUSD pair and using the trend line on the BTCUSD 4 hours candle chart. You can see the candles 3 times bounced back following the trend line towards upside. We can see the candles are respecting the trending line and price is expected to go up from current levels. For confirmation i have also used RSI indicator which is also showing the continuous upward movement and RSI may test 70 level which is normally a overbought zone. In short time frame price is expected to move upside from current levels.

There are lots of other indicators which we can use to get help in technical analysis. Some of the popular indicators are : MACD, Bollinger Band, RSI, Simple and Exponential moving averages(SMA/EMA) etc. Some of the popular chart patterns are : Trendline, Support and Resistance, Rising and falling waves, flag pattern, Cup and handle pattern, Head and Shoulder pattern etc.

Trading Chart Source: https://www.tradingview.com/chart/JS1A5JaG/

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Fundamental Analysis

Fundamental Analysis is a kind of evaluation or analysis of assets and it's price movements from the impact of developmets, news and events. It helps us to determine how and what will be the impact of that news or events to related assets. Positive news impacts positive in terms of price of the related pair and similarly negative news impacts negatively in price of the related pair. So, in positive news market price moves upside of the related asset and if there is negative news , the price falls of the related asset. Financial Market run in supply and demand principle . The factors that impact on the price of financial market and assets are financial news, govt. policies, events etc. In crypto market news and events impacts the most.

One of the best recent example of Fundamental Analysis is the news came from China on Crackdown or Ban of Bitcoin Mining and ban on banking transactions related to cryptocurrencies . It had a very bad and immediate affect on the whole crypto market and specially in the price of bitcoin. we can see sharp fall in Bitcoin price after the news.

Source: https://www.cnbc.com/2021/06/21/bitcoin-btc-price-drops-on-china-crypto-mining-crackdown.html

Name at least 3 trading platforms with the highest trading volume where we can buy our first cryptocurrencies and explain in your words the ways to buy cryptocurrencies on that platform ( Do not use Binance )

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We will use coinmarketcap.com to check the Exchanges having highest volume and to find the list of all crypto currency exchanges as per their trading volume .

• Visit https://coinmarket.com and click on exchanges as showing in the screenshot. It will show you different list like Spot trading volume, Futures trading Volume, NFT.

• Click on Spot to find the Exchange having higest trading volume in spot trading :

• Now you can see the list of all the exchanges as per their trading volume ranking . I have chosen Top high trading volume
  Crypto Exchanges from the list ( Huobi Global, FTX and Kucoin) to show how we can buy or sell our first cryptocurrency :

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Huobi Global : To buy or sell cryptocrrency in Huobi Global visit https://www.huobi.com/en-us , Register and setup your account and if you already have an account there , Simply login into the Website. Or you can also use their mobile app to buy or sell and trade cryptocurrency.

• After login you will see the interface as showing in the screenshot , now click on Buy Crypto

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• Now you will see 2 options there: Quick buy/sell and other option is P2P Market (peer to peer). This is quick buy/sell tab and from here we can buy or sell cryptocurrencies directly from our debit/credit card in our desired fiat currency:

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• In P2P Market we can buy or sell cryptocurrencies in different available and using multiple payment networks like paypal, skrill, advcash, payer, swift or bank transfer , payoneer and lots of other payment gateways we can find in p2p market :

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FTX : To buy or sell cryptocrrency in FTX Cryptocurrency Exchange visit https://ftx.com/en , Register and setup your account and if you already have an account there , Simply login into the Website. Or you can also use their mobile app to buy or sell and trade cryptocurrency.

• After login you will see the interface as showing in the screenshot , now click on Fiat:

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• Now you can see in the image there are 2 options : Deposite via Card here you can deposite your fiat from your debit or credit card and you can buy cryptos. Another option is Deposite/Withdraw Fiat here you can deposite and withdrawal in multiple fiat currencies :

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Kucoin : To buy or sell cryptocrrency in Kucoin Cryptocurrency Exchange visit https://kucoin.com , Register and setup your account and if you already have an account there , Simply login into the Website. Or you can also use their mobile app to buy or sell and trade cryptocurrencyin kucoin.

• After login you will see the interface as showing in the screenshot , now click on Buy Crypto:

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• Now you can see in the image there are 3 options : Debit/Credit Card here you can deposite your fiat from your debit or credit card and you can buy cryptos. 2nd option is P2P here you can deposite and withdrawal in multiple fiat currencies and buy or sell from different other users. 3rd option is Fast Buy here you can buy or sell instantly from the platform using your Debit Card.

Below you can see Debit/Credit Card option tab :

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• This is P2P tab , we can see the there are different payment methods are available for buying and selling crryptocurrency:

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• The 3rd option is Fast Pay , here we can instantly buy or sell usdt using our debit card. USDT is a stable coin which is pegged by usd and 1 usd is equals to 1 usdt. You can see the interface of Fast Pay tab as below :

Conclusion

Trading and trading platform is very much important in crypto currency. It wont be easy to buy or sell withour trading platforms. We should consider good exchanges while selecting any exchange with high security and must have enable multi factor authentication system to secure our account properly . Avoid buying or selling of crypto currency using Paypal payment method, it is very high risky and mostly spammers use this medium of payment to scam the people misusing chargeback policies.

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Thanks Professor @lenonmc21 for this beautiful and interesting lecture. I'm looking forward to your next lecture.

Thank you all steemians for reading !