Good day fellow participant of this beginners class. I am @ayoyemi, this is my homework post for the assignment of @lenonmc21

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

What is trading?

The movement of commodities or services from one person or organization to another, frequently in exchange for money, is referred to as trade. A market is a network that facilitates trading. The first form of trade was barter, which comprised the direct exchange of products and services for other commodities and services without the use of money.

Then, as economies grew stronger, precious metals began to be used. Traders nowadays frequently do business using a medium of exchange, such as money. Money, paper money, credit, and non-physical money were all invented to make commerce more easier.

A trader can be anyone, from a little investment to a large enterprise. Trading can be done in person, over the phone, or through an online trading platform, and it can be done directly or through a broker.

Cryptocurrency trading

The act of speculating on cryptocurrency price movements via a CFD trading account, or buying and selling the a certain coins via an exchange such as Binance, Huobi, Kucoin etc.

Because there is no centralised governance of the cryptocurrency market, it is normally open for trading 24 hours a day, seven days a week. Cryptocurrency transactions take place on cryptocurrency exchanges all over the world, between individuals. There may be periods of outage while the market adjusts to infrastructure improvements, known as "forks."
Cryptocurrency is highly volatile and its volatility is part of what makes this market so intriguing. Rapid iprice changes can offer traders a variety of opportunities to go long and short, but they also carry a higher risk. So, before you dive into the cryptocurrency market, make sure you've done a thorough research on risk management strategy.

Trading Function

The overall Function of trading is to make money by purchasing at a lower price and selling at a high one, typically in a short period of time. For example, if a trader bought an asset at the rate of $10 and the price move up for him to sell the same asset for $15, that is a profit of $5. Although trader can also make a loss when the reverse happened.

1b. 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).

Technical Analysis

Technical analysis is the process of predicting the future of a market by analyzing real-world data. It entails reviewing previous cryptocurrency facts, such as volume and movement.

When it comes to crypto pricing or trends, technical analysis relies on the concept that history repeats itself. Technical analysts use this information to make predictions about market psychology and cryptocurrency.
Technical analysis is likewise based on the notion that price changes are never random. Rather, these price changes are driven by short- or long-term patterns. When a cryptocurrency follows one trend, it almost always follows the opposite tendency as well. Traders using technical analysis will attempt to isolate these trends in order to profit.

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The highest candlestick point indicates the highest price of the asset during that period, and the lowest candlestick point during that period is the lowest price. The candlestick "body" indicating the opening and closing prices for the time period (in each candlestick (the red or blue "block" or thicker piece, as shown in the charts above).

Fundamental Analysis

Fundamental analysis examines an asset's fundamentals, or all of the factors that influence its entire worth. It entails examining the external elements that may have an impact on a specific asset.

To mention a few relevant indications, you may assess the status of the cryptocurrency sector, the market as a whole, the domestic and global economic environment, supply and demand, and the competitive landscape.

fundamentals that may be considered in cryptocurrencies include:

• Whitepaper: A cryptocurrency's Whitepaper is just like a prospectus of a company. A crypto Whitepaper provides information about the asset, its specifications and the objectives of the initiator.

• Project Team: Is there a specific team behind this cryptocurrency? If so, what are the records of its members? How experienced are they in crypto-currency industry? What other projects did they initiate? What are the backgrounds and know-how of the team members?

• Developer: The number of contributors and number of activities around an asset are worth researching.the number of project developers that are working on a cryptocurrency can often be signs of their potential.

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 ).

The first thing to do is to visit coinmarketcap.com, it is a place where we can see the trading volume for each Exchange.

From the list of exchanges, I have been able to select these three Exchange platform: Huobi, Coinbase and Kucoin

How to buy Cryptocurrency from Huobi

The first thing to do to be able to buy Cryptocurrency from Huobi Exchange is to visit their site www.huobi.com, and then you will log in with your account.

• From the homepage, press the wallet icon

• From the screenshot below, you click on the coin you want to buy. There you will see the the means by which you will buy.

• The first one is pay with card option.You just type the number of The coin you want to buy and the fiat value will be displayed as shown below.

• The second means of buying is P2P market where you will get the available offers.

Buying Cryptocurrency with Coinbase

Step 1: The first thing is to visit the site http//pro.coinbase.com, and log in with your account

Step 2: From the homepage, click on buy and sell and the list of coins we appear as shown in the screenshot below

Step 3: In my case, I want to buy bitcoin with my USD. You will fill the purchase form and Indicate how much BTC you want to buy from the USD.

Step 4: Then you will click on buy. The amount of BTC bought will be added to the BTC wallet on the Exchange.

Buying cryptocurrency on Kucoin platform.

Step 1: Go to http//m.kucoin.com, and from the bottom menu of the homepage, you will click on "buy crypto"

Step 2:

• Select the coin you want to buy
• input how much USD you want to spend
• Choose the payment method
• Choose your payment channel
• press confirm.

Step 3: Here we have the summary of the transaction.

• Read the disclaimer
• Click on I have read and agree to disclaimer
• Click confirm

Step 4: We are now taken to the payment channel site.

• Click on I agree to the terms of service
• Click on buy.

Conclusion

Cryptocurrency trading differs from traditional exchanges. There are a few differences. To succeed in cryptocurrency trader, you need reliable sources of information to be found, research carefully carried out, the most adequate exchange and wallet must be chosen

Thank you all.

Cc:
@steemcurator02
@steemitblog