Crypto Academy Week 11 - Homework Post for [ Professor @alphafx] on holding and trading.

In this week's class, professor @alphafx took us through the types of wallets we can either hold or trade our tokens. We also looked at reason why people would prefer to hold their tokens rather selling them and vice versa. Trading cryptocurrencies is very important and it either make you loss money or make huge profit depending on the odds you have to pick. He also explained to us the types of wallets with their advantages and disadvantages, how to trade on the crypto exchanges and the types of trades available to the trader. I personal enjoyed the class and this is my homework presented below.

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Question 1

Do you hold any coins? Talk about the wallet type you prefer/would prefer holding in?

Solution

image source

Before I proceed to answer the question, I would like to summarise the wallet types discussed in the class.
They are basically two types of wallet one can hold his or her tokens, these are the cold wallet and the hot wallet.

The cold wallet : This type of wallet is not connected to the internet, but are cumbersome to used and are also much safer compare to their counterpart. This is because they can not be hacked so are highly recommended to holding coins. This kind of wallet are of several types of which include; paper wallet, hard ware wallet, off line software wallet.

The hot wallet: This kind of wallets are connected to the internet and types of these wallet include exchange wallet, mobile and desktop wallet, web wallet.

Hot wallet vs. Cold wallet

The significant difference between these two wallets that is the hot wallet and the cold wallet is that whether it is connected to the internet or not.

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Now in answering the quetion above, Yes, I hold about $76 USDT in my Binance wallet splitted between my spot account and P2P account.

I personally prefer or like my Binance wallet which is an example of a hot wallet. Meaning it is connected to the internet and it is some expose to scammers. With all these disadvantages if you would say, I still prefer my Binanace wallet for a number of good reasons listed below;

Binance Exchange Wallet

Security and Trading

Binance is an exchange that is centralised, that trade cryptocurrencies and provides crypto wallet for its traders. Traders store the token in their wallet and trade with it. This wallet provides a memo key and a unique address key for transfering of tokens from a different wallet. As part of its security measures, it has a security extension to the user's email account, google authenticator.This is done to strengthen the security of the users account, incase a user misplaces his/her phone or laptop, he can retrieve with his email account.Trading can be done at anytime from the wallet, several types of tokens can be deposited in the wallet either crypto or fiat,binance has higher listing of token. Coin list include ARS, AUD,BRL, INR etc. Tokens in the spot wallet can be transfered to your P2P wallet, margin wallet, future wallet for trading. Transfering of tokens from spot wallet to other wallet is very easy and convience because one do not need any key for that, also, there is no charging fee for transfering. One advantage thing about Binance exchange wallet is that, tokens can be withdraw from your spot wallet to any other or a defferent exchange wallet.

The user interface

I personally fine the user interface so easy to use and more understandable compare to other wallets. The accounts for the various transactions are easy to use and do not require a numerous steps and processes to perform a single transaction.

_{The user interface}

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Question 2

With screenshots, show how to perform spot trading on any pair of your choice.

Solution
I will be spot trading TUSD/USDT and buy TUSD with my USDT, the steps for trade is listed below;

Step 1: In your Binance home page, click on wallet and sellect fiat and spot in the pop out box.

Step 2: Search the token to be trade in the search box that is TUSD and click on trade to select the trading pair.

Step 3:under buy TUSD trading interface, first, I will select Market because I want to buy fast at market price. Enter the amount of USDT you want to sell for TUSD. After that, select on Buy TUSD. The order will be place immediately and you can view the bought token at your spot wallet.

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Question 3

Holding or trading, which do you prefer and why?

Solution
I personally prefer trading.

Reason: Because I am new to the Binance Exchange, I have a lot of plans to grow my portfolio very fast, I prefer trading my tokens instead of holding my tokens. The reskier the venture, the higher the reward, Though trading can be more risky but the reward or profit is enormous and with a careful study of market variables, I can make a huge profit to increase the assets in my portfolio.

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In conclusion

I will like to thank professor @alphafx for this wonderful class, I can't wait to meet you in your next class. My regards to professor @levycore .