Lesson 3 : How to spot trade ? Everything a beginner need to know ...

in SteemitCryptoAcademy14 days ago (edited)

Lesson 3 : How to spot trade ? Everything a beginner need to know ...


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Dear Friends,

This is the third lesson of my lecture series. Today we will discuss about how to do a simple trade and all what you need to know as a beginner. My lecture series is completely designed for beginners , where I started from the basics and wanted to give you a practical knowledge. In my first lecture, Introduction to cryptocurrency trading , we discussed how to select a crypto currency exchange and a crypto currency to trade. And in our second lesson , How to setup a trading account in a Cryptocurrency Exchange , we discussed how to create a trading account in a crypto currency exchange , how to deposit assets, how to withdraw assets etc... And all of you practically did that through the homework task 2 for different exchanges. Today we will go one step further. Let's trade !


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What is a Cryptocurrency Spot Market ?


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source :https://www.binance.com/en/trade/STEEM_BTC

A crypto currency spot market is a place where crypto sellers and crypto buyers get together to trade their crypto assets. A spot market means a place where the exchange or the trade initiated instantly. In a spot market , a trade is instantly settled when the buyers offering price and sellers bid price are equal. This price is called the spot price or current price.

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source : https://www.binance.com/en/markets

These spot markets are active 24/7 and they operate continuously. And your digital funds can be deposited and withdrawn at any time you need. Majority of the crypto traders will manually place their buying and selling orders and some traders use automated trading tools to place orders. We will discuss about them in our future lessons. Now let's identify the basic things you need to know in a spot market.

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Let's Trade...

After logging in to your Binance account , navigate over to the BTC/STEEM trading pair. In this page you can see partitions like Order book , which shows the buy and sell requests placed by buyers and sellers. The graph at the center shows the variation of Steem price over Bitcoin over time. And in the right hand side you can see the Trade History , which shows a records of individual trades which are executed on this trading pair Steem/Btc . The main characteristics of the crypto spot market is that when you're placing an order to buy or sell cryptocurrency the order is executed instantly. When you place a order for one bitcoin the exchange will instantly execute that order to buy one bitcoin on the order book that you're currently looking at. That means there's essentially no settlement period. When the order is placed with the exchange , it executes that order between the buyer and the seller instantly. The way that spot markets work is there's an order book and on that order book people can place orders to either buy or sell their cryptocurrency. The orders on the bottom down are the bid orders the people that are looking to buy bitcoin. The top orders in red color are the asking prices for bitcoin essentially the people that are looking to sell bitcoin for Steem. However if we don't place an order above or equal the current best asking price , the order won't execute immediately it will get placed on the order book and it will remain on the order book until somebody takes that order. but as soon as somebody comes along and takes that order the order is executed instantly. The trading process is very simple , you need to learn it buy trying by yourself. It's the best way to learn.
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Trading fees


The newbie traders who start trading sometimes pay unnecessary payments as fees. You must find out all the information about fees and rates for the exchange you have selected. In leading trading platforms , the trading fee varies in-between 0.05% and 0.2% per one trade or a transaction. Trusted exchanges make these fees public always. If trading fees are hidden in an exchange platform ,you should think again before trading.
We need to pay a fee for the exchange platform for each and every trade we make. Different exchange platforms have different trading fees. Binance platform has the lowest trading fees compared to other exchanges. The trading fee schedule of Binance is as follows. Reference

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And exchange platforms charges a fee for depositing and withdrawing assets. For majority of the there is no deposit fee but there is a withdrawing fee. And depositing and withdrawing fees varies on the crypto currency. You can find the rates here for Binance where almost all the coins deposit is free and there is only a fee for withdrawing.
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A word before start trading ..

It's a great challenge for a beginner to trade cryptocurrencies and obtain a profit. For an experienced trader , even with a small capital , has the ability to increase it with correct predictions. A trader must perform a correct fundamental and technical market analysis before placing an order. At the same time you should monitor all the news related to each and every blockchain based project. One single news can change your life. But trading based on news is risky too as this crypto industry is running with gossips. People are very cleaver and they create news and profit. A trader must follow the significant characters who plays a crucial role in this crypto industry. Their actions and decisions make significant change in the crypto market prices. As a beginner you should learn to perform a technical analysis and predict the market. A traders is someone who learn with experience.

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Homework Task 3

You need to do your own research and create an article discussing following topics,

(1) Explain Spot Trading and Margin Trading
(2) Discuss the advantages and disadvantages of Spot Trading and Margin Trading


Guidelines


• Your homework post should be posted in crypto-academy community.
• Your article should be at least 300 words.
• You have to create a simple guide in a way a newbie can understand and follow the steps.
• No plagiarism please . You can use images taken from copyright-free sources mentioning the source.
• The final submission date will be 28/02/2021
• Add tag @besticofinder in your post, it will help me to find your submission. Use #cryptoacademy and #besticofinder-week3 , so that Steemit Team can find you.



Thank you.
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Cc:-
@steemitblog
@steemcurator01
@steemcurator02

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#cryptoacademy #trading #begginers #introduction

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Greetings my friend @besticofinder

I really liked the tasks you send to perform, so I have joined to perform task 2, however, this one I did it in Spanish.

My question is, should I do it in English to be reviewed by you and @steemcurator01?

My intention is to make the explanation clearer to the Spanish-speaking people.

I will be doing task 3, very good topic.

Thank you for your commitment to the Steemit community.

Here my post:
https://steemit.com/hive-185836/@adeljose/crypto-academy-week-2-homework-post-for-besticofinder

Hi Friend ,
No you can post it in any language. I can review using a translator. No problem with that. But make sure to post the article in Steemit Crypto Academy community. I missed your posts as I check articles within the community.

Una pregunta amigo. Disculpa mi intromicion. Pero la tarea no era un artuclo explicando el comercio al contacto y el comercio de margen? No entendi. Puedes explicarme? Lei tu post.

Saludos amigo, es cierto, debes explicar a que se refiere y como generar una orden de compra al contado y otra al margen. Al contado es cuando generas una compra con capital propio, y al Margen, es cuando generas una compra con préstamo.

Esto debes profundizarlo en tu publicación.

i think sir it is best selection in series so it is very much important topic for new trader after creating trading account ,, nice lesson

I wanted to support the newcomers.. I try to make them as simple as possible. Hope people get support from these articles .. Thanks for the feedback !

Спасибо за ваш замечательный пост. Я к сожалению не умею торговать с маржой, торгую только на спотом. Ждала объяснения маржевой торговли от наших профессоров и от вас в первую очередь. Может вы могли бы подготовить ещё один пост о маржевой торговле. Это сложный вид торговли, там много тонкостей, как правильно выставить ордер, с какой маржой... Была бы очень рада, если б вы подготовили такой пост. Спасибо вам.

Yes , Thanks for your comment. I will organize a lesson on margin trading soon.

Очень признательна вам за ваш ответ. Буду ждать с нетерпением ваш пост о маржинальной торговле.
Хорошего дня вам.

I am upcoming trader, working on my skills. Many thanks for sharing your ideas and strategies.

Hi guys Steem 🌫️ family latest article just dropped make sure to check it out follow this link let's make things happen:
These two African bank's stand firm on their decision.

You are a very good teacher and you are teaching people by heart I will try to learn from you too and I will also write a blog on it I hope you will like my blog too.

Thanks for this prof. Ive learned a lot from this and I will be glad to submit my entry anytime soon.

Thanks for the feedback. waiting for your article. keep up the good work

Thanks for the feedback.
Waiting for your article.
Keep up the good work

                 - besticofinder


I'm a bot. I detect haiku.

Thanks prof. I will submit my entry before the deadline period. One love bro

Thank you, professor. I've completed my homework. I'm able to understand spot and margin trading with the topic and your post. Below is my entry.

https://steemit.com/hive-108451/@ckole/crypto-academy-week-3-homework-post-for-besticofinder-explain-spot-trading-and-margin-trading-and-discuss-the-advantages-and

Hello sir i am attending all of your lectures and this time the lecture is very unique and interesting to learn new things about the trading.

Dear @besticofinder

APPICS is the easiest way to share pictures & videos on the blockchain and get rewarded with both STEEM and APX tokens! 📱

I'd like to invite you to join our mobile apps for iOS and Android, where you can simply login with your steemit account and start getting rewarded for your passion. APPICS is the most engaged dApp in the STEEM ecosystem!

If you are on iOS, please visit ios.appics.com and download the app directly from there. If you are on Android, please sign up at softlaunch.appics.com with your google play store email address so that we can invite you and send you an exclusive download link via email!

Team APPICS

Everything you need to know about APPICS: https://linktr.ee/appics

Visit our Website: https://appics.com

Join us on Telegram: https://t.me/appics_official

Thank you for submitting homework task 3 !

Thanks for submitting the homework task 3 . I will review it soon

Thank you for your kind attention
Best regards

Hello, besticonfinder!
I hope you are well.
I want to participate in these classes.
Can I join your classes? Will I be on time?
Greetings!

Yes you can join my friend

Hello, dear professor @besticofinder, this class was very good, the truth was I did not know what the margin trade was, now I have known how it is, although I see that it is a bit risky, maybe I am not ready for that yet, if I operated under these conditions I think it would be the same as going to a casino. What do you say?

Thank you very much for this class.

Here I leave you my homework, I hope you review it and it will be useful for the rest of the colleagues. Greetings: D


Crypto Academy Week 3 | Homework: How to operate spot trading and margin trading from android [ Task 3, by @besticofinder]

Dear @besticofinder

APPICS is the easiest way to share pictures & videos on the blockchain and get rewarded with both STEEM and APX tokens! 📱

I'd like to invite you to join our mobile apps for iOS and Android, where you can simply login with your steemit account and start getting rewarded for your passion. APPICS is the most engaged dApp in the STEEM ecosystem!

If you are on iOS, please visit ios.appics.com and download the app directly from there. If you are on Android, please sign up at softlaunch.appics.com with your google play store email address so that we can invite you and send you an exclusive download link via email!

Team APPICS

Everything you need to know about APPICS: https://linktr.ee/appics

Visit our Website: https://appics.com

Join us on Telegram: https://t.me/appics_official

Dear, @besticofinder, as you are going to explain about cryptocurrency step by step, it is easy to understand for the begginers. You are genius in this field.
Here is my homework week 3.
https://steemit.com/hive-108451/@azamrai/crypto-academy-week-3-homework-post-for-besticofinder

Thank you. I will review the homework soon.

This information is collectible, I have it saved in my browser as a query. The world of trading and cryptocurrencies fascinate me. Continue like this friend that vocation of service. regards

Thank you professor @besticofinder for the lectures. I enjoy your lectures and I'm anticipating more of it in the coming weeks.
Here is my entry for the homework
https://steemit.com/hive-108451/@senicbliss/steem-crypto-academy-week-3-home-work-post-for-besticofinder-cryptocurrency-spot-and-margin-trading

Very helpful, more success on the way 💗

Thanks for the feedback

Professor @besticofinder thank you for your good work. I will be glad if you could kindly create time to review my homework out of your busy schedule. Thank you in anticipation

Good lecture from you dear professor @besticofinder. I have learnt a lot and I present my entry here!

Also it can be found below;
https://steemit.com/hive-108451/@fredquantum/steemit-crypto-academy-homework-task-3-how-to-spot-trade-beginner-s-guide-or-lesson-by-besticofinder

Thanks as await your review, sir.

Thanks for submitting the homework task 3 . I will review it soon

Thank You .

I'm a beginner, helpful to many like me

Thanks for the feedback

Hello @besticofinder I will be happy if you can review my homework task submission.

Thank you

Hola profesor. Saludos espero este bien. Quiero comensar en el mercado del steem y sbd. estube investigando que es un stop-loss me sirve para medir mis perdidas y mis ganancias. entonces quiero saber que app me sirve para moviles o para el ordenador que tenga pocas tarifas de cobro por transaccion y que le pueda colocar SL.. ademas otra moneda estable para mantenerla mientras tradeo. Quisiera saber como me puede ayudar. 👍

Dear professor, thank you for the opportunity to learn more about trading concepts step by step in a simple way.
My homework 3

Hello @besticofinder professor, you have not evaluated my homework, please have a look at it as I have put in a lot of hard work in it. Please have a earliest look at it as today is last day to get any vote.

Моё домашнее задание не было проверенно

Какой смысл от домашних заданий, если их не проверяют...

Thank you so much professor for the informative lecture. Your lectures are very easy and informative. Please check it here is my homework for week 3

Buenas tardes prof @besticofinder aqui mi Tarea de 3

Hello sir you have explained it very well and i have learnt a lot of things from your this lecture. you are doing very well and it is the result of this lecture that i will be able to write a post about your homework task.
Here is my homework task:Crypto Academy Week 3 Homework Post for [@besticofinder] Spot Trading And Margin Trading their advantages and disadvantages
Please check it when you are available.

Interesting topic! It's imperative to fully understand these types of trading before venturing into the business. Below is my entry;

https://steemit.com/hive-108451/@tomlee/steemit-crypto-academy-week-3-homework-task-by-besticofinder-the-concept-of-spot-and-margin-trading

Good day sir @besticonfider. This is just a reminder that you have not graded my last assignment cause I want to knowy performance so as to gear up. Here this link below..
https://steemit.com/hive-108451/@kadosh2340/homework-task-explain-spot-trading-and-margin-trading-advantage-and-disadvantage-of-spot-trading-and-margin-trading-submitted-by

Do we need to post links to our Homework as comment on your post?

Do we need to post
Links to our Homework as
Comment on your post?

                 - uyobong


I'm a bot. I detect haiku.

Good day sir @besticonfider. Pls this is another reminder that you have not graded my week-3 task assignment cause I want to know my performance so as to gear up. Here this link below..
https://steemit.com/hive-108451/@kadosh2340/homework-task-explain-spot-trading-and-margin-trading-advantage-and-disadvantage-of-spot-trading-and-margin-trading-submitted-by

Hi guys Steem 🌫️ family latest article just dropped make sure to check it out follow this link let's make things happen:
These two African bank's stand firm on their decision.