Great time steemians, I trust we are having a good time, my regards too to the professor of this great lesson, it's been a very nourishing one. Exchanges are the title of this great article and proper justice, I must confess has been effectively done to everything about exchanges. Below is my work, professor ![SCIENCETECH.jpg](https://cdn.steemitimages.com/DQmPYcL3iHB5WoSxEUAbGNMYP4bcbLeqhEaFSWDrFVLUxhR/SCIENCETECH.jpg) _{designed with photoshop} ![steemline.png](https://cdn.steemitimages.com/DQmTPftiBBdZ9RfhSS5He33f1JnRkGxdcf2msyTwwrCzgxQ/steemline.png) **1.)Perform a complete analysis of the currency of an exchange.** Before I tender my analysis of the currency I'll be considering, I deem it necessary to reiterate concisely on Exchanges. The lesson presents exchanges to be platforms that serve as a medium for the exchange, buying, selling of digital assets and securities. We might be forced to say here that the backbone of trades and every crypto activity, is an exchange because when an exchange is extincted, the native token automatically becomes null and void. We've considered the two kinds of exchnsges, centralized and decentralized as well their difference being that in the former an intermediary is involved while the latter eliminates middlemen but use smart contracts instead These exchanges provide for different services too like flexible savings, launch pools, staking, swapping and other advanced and profitable crypto currency activities. Examples of these assets include :Binance, Kraken, Coin base etc **My analysis would be based on the Huobi Token and I hope you consider it worthwhile.** The Huobi Global Exchange, has the Huobi token, to be its native token and as the task demands, could be classified in the group of exchange tokens. The spread and distrbution of these tokens could be detailed back to 2018 where these tokens were given away to users of the platform involving over 300million tokens out of 500million tokens which users could buy, sell and trade with. In a bid to support the token and keep its value stable, a process called burning takes place. To define this token, we can call it crypto decentralized asset, that works on the ethereum block chain and operates well with the famous Huobi exchange **Uses /Applications of the Huobi token : The uses of the Huobi token are diverse and cogent in that :** * Holding of the Huobi token, gives its users the exclusive benefit of having 65% discount in trading levies /charges * Token launch :Huobi holders, are allowed the privilege to take part in token launches and in this process, they could purchase new tokens on the Huobi exchange with a discount price before it gets listed. * Staking in liquidity pools :Huobi owns a liquidity pool known as the Huobi's prime pool and with this pool, users are free to utilize their tokens by staking and and locking of their tokens which earn them rewards after a particular time through airdrops * The Huobi Eco chain (HECO) chain is another channel of profitability with Huobi tokens since its a decentralized and open blockchain with high level of compatibility and efficiency in transactions. Several Dapps too are on this chain and the reduced gas fees and cross chain performance is a great feature of it with other financial activities like lending, staking mining etc ![IMG-20211120-WA0008.jpg](https://cdn.steemitimages.com/DQmToxjfNdHCv9K7ncHP7QRLTMb7iDaR8WJvX5WToizXeJu/IMG-20211120-WA0008.jpg) ![IMG-20211120-WA0009.jpg](https://cdn.steemitimages.com/DQmWHUNekMk2pbc1FNreMwmmhDv2kcRCAFwxPMHsXkkSh4j/IMG-20211120-WA0009.jpg) The Huobi token is valued at $9.80 with a market cap of about $1,560,803, 546 while it's fully diluted market cap is at $4,898,680, 539.20 and have a circulating supply of 159,308,566 Huobi tokens and a maximum and total supply like I stated in the notes of 500,000,000 Huobi tokens. Its ranking is at #82 with respect to coin market cap. It's trading volume too is at $107,638, 286.02. ![steemline.png](https://cdn.steemitimages.com/DQmTPftiBBdZ9RfhSS5He33f1JnRkGxdcf2msyTwwrCzgxQ/steemline.png) ![steemline.png](https://cdn.steemitimages.com/DQmTPftiBBdZ9RfhSS5He33f1JnRkGxdcf2msyTwwrCzgxQ/steemline.png) **2.) Make a purchase equivalent to at least 15 US dollars of the currency you explained above. You must make some move with that currency within the exchange that created that currency. Show screenshots and explain in detail the steps to follow. Example: transfer of funds, Staking, participation in a Launchpad, futures trading, etc. State the reasons why you chose that option (trade) on that platform.** As we have read above, the exchange has already been discussed and explained above and I will be going straight to making use of the exchange first I will be making a purchase of the HT(Huobi Token) in order to do that * download and install the mobile app of the Huobi Global Exchange ![Screenshot_20211118-204520.png](https://cdn.steemitimages.com/DQmavbnTmW7x8ARViJe5Qp2c8v7S9onLfQUUo22Mrn1FPJd/Screenshot_20211118-204520.png) * login to the wallet and click on deposit to deposit usdt which you can exchange for the HT coin. inorder to deposit the usdt asset, I used the trx20 network to transfer usdt to the Huobi Exchange. ![Screenshot_20211118-205112.png](https://cdn.steemitimages.com/DQma2SqxVJGpxvKBtDhBq9Ak42pPzUqaCv5eVfZ18kiM4xi/Screenshot_20211118-205112.png) * Navigate to the market and search for the HT/USDT pair, click on it and make the swap ![Screenshot_20211118-205532.png](https://cdn.steemitimages.com/DQmYCRt8VwKcoEBEv7Tkv4EQbnxaPwrjvHFJHkcRuVL3e6H/Screenshot_20211118-205532.png) * below is the filled screenshot of the trade. ![Screenshot_20211118-212317.png](https://cdn.steemitimages.com/DQmNo1eLZz785V8rbyYJbNcggWM7TNmR3UZeQFFSi3tBZ7Y/Screenshot_20211118-212317.png) * we can see the screen shot of the asset in the wallet ![Screenshot_20211118-212344.png](https://cdn.steemitimages.com/DQmcBbqizueMFqji5ZyLXgSTgmqJb6jmzQxDFRWyXoK7dDV/Screenshot_20211118-212344.png) ![steemline.png](https://cdn.steemitimages.com/DQmTPftiBBdZ9RfhSS5He33f1JnRkGxdcf2msyTwwrCzgxQ/steemline.png) **3,) Show the return on investment in time spans of 0, 24, and 48 hours from the time you bought. Take screenshots where you can see the price of the asset and the date of the capture.** ![Screenshot_20211118-212344.png](https://cdn.steemitimages.com/DQmWHWASjVqnLjsAMPYkkYGXGYw1TSTy3vwmHuGur1MUg7n/Screenshot_20211118-212344.png) ![huobi price 0hrs.JPG](https://cdn.steemitimages.com/DQmRdi265wshV6N8rEw6bxKJMAq7X3gGpay2fmZxnQyS6W4/huobi%20price%200hrs.JPG) * If we look at the chart above we would see that I bought the coin at $9.80 . ![ht price 24hrs.JPG](https://cdn.steemitimages.com/DQmYSJeoZ4C3NjsNkJxLSMAMhfMfDSFytZKb9JQ5TwC8GJf/ht%20price%2024hrs.JPG) * if we look at the chart above, we can see that after 24hrs, there is an increment in the asset of the price by 1.84% bring the coin to $9.96 ![ht 48hrs.JPG](https://cdn.steemitimages.com/DQmTJbMRyeKZf2upuUnNtDyFEV8tkNdb3PRnVFipdeuvGuS/ht%2048hrs.JPG) * After 48hrs, we see a decrease in the price of the asset. Even though it didn't reduce below the initial purchase price of $9.80 and now it rised to $9.83 ![steemline.png](https://cdn.steemitimages.com/DQmTPftiBBdZ9RfhSS5He33f1JnRkGxdcf2msyTwwrCzgxQ/steemline.png) **3.1) Has the asset's price acted independently or does its price strictly follow the correlation with Bitcoin?** In my opinoin and my understanding using the RSI indicator to analyse the asset, the HT(huobi token ) doesn't act independently as it moves in correlation with bitcoin. from the two charts on a 1day time interval, we can see closely that for every downward trend on the BTC/USDT, there is a correponding downward trend on the HT/USDT chart. currently on the chart of both assets of the HT/USDT and BTC/USDT, we can see a current movement for an upward trend and it corresponds in both charts. So definitely, I will say that Huobi token, follows in correlation to bitcoin. ![ht chart.JPG](https://cdn.steemitimages.com/DQmS2nBEMaPfGQsiqMkvFCksyYfmh6yTsf5LENme39Jy28A/ht%20chart.JPG) ![btc chart.JPG](https://cdn.steemitimages.com/DQmafqLdtWoGWcG8XcYkXmw73BEXcK8mi8gZ78vfjUJGBA7/btc%20chart.JPG) ![steemline.png](https://cdn.steemitimages.com/DQmTPftiBBdZ9RfhSS5He33f1JnRkGxdcf2msyTwwrCzgxQ/steemline.png) **4. What are futures trading?** The concept of futures trading, brings us up to a very high and advanced level of crypto currency trading. This part of trading, I must admit doesn't call for youngsters and inexperienced once since it's a very serious and delicate aspect that could make or mar a trader. Futures trading could be defined as legalized and verified contracts between parties (exchange and trader mostly) to buy /sell assets at a foretold/predicted price at a particular time and date in the future. Here traders foretell and make actions behind them for instance a prediction of a falling asset would mean selling and a rising asset means buying too I'll like to take into consideration the characteristics of futures trading that brings benefits and prospect to the average trader. * Futures trading is a leveraged investment and so through this process, traders are allowed hold of a huge value of assets even more than they can originally afford without actually buying the main assets and the profits areheavy when the market tides are at the trader's favour * The cost in executing transactions in futures trades are extremely low when positions involved are not open eg the transaction fees could be reduced to about 0.5% on some transactions compared to others kinds of trade which could be more exorbitant * Liquid markets :The futures market experience heavy trades due to the large number of buyers and sellers in them and the presence of liquidity in them makes market orders efficient and even incessant fluctuation of the value of assets **Disadvantages of Futures markets :** * Leverage turndowns, could be a major disastrous factor since they could heavily increase the loss incurred by the fluctuation of value of assets which could take place in minutes or even hours * Presence of contract expiry dates :In the trade of future contracts, there are dates tender the trades invalid anymore and the investment that a lot has been put in could become worthless ![steemline.png](https://cdn.steemitimages.com/DQmTPftiBBdZ9RfhSS5He33f1JnRkGxdcf2msyTwwrCzgxQ/steemline.png) **5.) What is a margin market?** ![margin trade.jpg](https://cdn.steemitimages.com/DQmW76LUk6feTxYs13P7Yd12EfdXp4g1LMQWkSu1o5UUzcg/margin%20trade.jpg) [sources](https://blog.injectiveprotocol.com/what-is-margin-trading/) When considering the margin market, we no longer take it as the trading part but as an entity. This brings us to a conclusion that the margin market could be seen as an online platform that's meant for borrowing of funds/assets by a trader or investor from an online broker to trade an asset /crypto currency which he confirms as a collateral for the lending done. The collateral given to the broker for the funds lent for the trader to trade is known and considered as margin. We can further explainthis by using an example where I want to perform a margin trade on Binance where I bring $50 and borrow $250 from Binance. Here the least margin requirement, would be $25 while the net value be $50. If the assets price pushes up to 260,the net value, pushes up to $10 and so to maintain the margin, he'll need to increase the value or sell the asset and repay the loan **Benefits of Margin markets :** * From its definition, we can understand from here that, traders can transact above their purchasing power with the aid of lent funds from brokers and can maximize profits in the process * Diversifying of stock purchases and trades :Traders tend to put their eggs in different baskets better from the advantage, given to them by Margin brokers since they now can benefit from some rising markets if not all **Cons of Margin Markets :** * When the market prediction goes wrong, the same magnitude of profits that was formerly earned, turns to losses and traders would be in heavy losses, therefore this poses a very heavy risk to traders * Before margin markets are traded in, there must be high understanding of the markets and so this requires complicated processes of learning and operation **6.) what happens to the currencies of an exchange when they turn out to be hacks or fraud** The answer to this question is self explanatory as we understand intensely, the result of a hack or fraud, is to make away with users funds maliciously and I'll be giving two instances of hacks /frauds. * The first example I'll be outlining is that of the Japanese liquid Global that announced on its Twitter handle of a hack into the system and making away of several and different crypto currencies like BTC, ETH Erc-20 tokens and the resolution made by the hacker was depositing of the funds on different platforms. * Another major example is the Pincoin exchange that started off the Pincoin ICO(Initial coin offering) and raised over $660,000,000 after which they turned to ifan too and after some while, users who invested it, lost their funds entirely and everything went down the drain **SCREENSHOT IMAGE REFERENCES** [COINMARKETCAP]() [TRADINGVIEW.COM](tradingview.com/chart/XapfWLVE/) [HUOBIGLOBAL](https://www.huobi.com/en-us/) BEST REGARDS @imagen