SCA Season 2 Week 3: Trading and Holding - Two Sides of a Coin for @alphafx Homework

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

Although I have never invested with cryptocurrency platform before and have never hold any crypto coin before but I would prefer holding in to Hot wallet more specifically exchange wallet (Binance) to be precise. Although hot wallets are not safe and can be easily hacked as compared to Cold wallets. But for me, the ease of accessing exchange wallet is much better because of its internet connection.

Binance is an exchange wallet and is one of the most reliable well known centralized exchange wallet. Holding in Binance gives an investing potential and as well have list of coins that can be hold. Holding in binance will give the opportunity of accessing the type of coin to hold and as well help in forecasting and predicting the target price range of a coin.

With the ease of funding their account through bank transfer or VISA/MasterCard, I think this is a plus. Binance is an exchange wallet which has an initiative which allows for extra crypto and also the safety as per high liquidity incentives. It also has a native coin which can also be hold.

With screenshots, show how to perform spot trading on any pair of your choice.
Performing a spot trading, first off…you must have an account with an exchange wallet
You visit their site, for my own I will be using Binance for my spot trading as shown below
On their home page, you click on the Wallet option

After that, you click on the Fiat and spot option on the drop down menu

It will redirect you to another page, here, you click on the Order option and then select Spot Order on the drop down menu

After this, you select on the Trade option and click on the on the choice of coin you want to trade on. For my own... I will be trading on the pairs of ETH/EUR as shown below

Then select the price you want to trade on then select the Sell ETH

Holding or trading, which do you prefer and why?

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This is quite a nice question, if not for this lecture, I wouldn’t have known that there is a difference between trading and investing.
In comparison with the two and also looking at the risk perspective as per the reward it comes with. Trading is more of a gamble because it involves buying and selling in short term run depending on the volatility of the coins and at some points, overwhelming profits might be incurred or liquidity. Trading needs the heart of gambler which in either ways is ever ready to continue even at loss or gain.

But when it comes to Holding, it also involves buying and selling but at a targeted price range. Holding is just like owning shares. It involves a long term run and so thus needs patience and endurance. Take for instance, Steem to be specific SBD as a coin as at 2019 was still at a low price and also was fluctuating at about the range of 0.8 to 1.0 dollars. Looking at the brighter side of it, because as the market goes, the cryptocurrency is at the rise daily, if I invested 1000 dollars into buying Steem as at 2019, being able to hold it up to 2 years at the long run, I now want to sell it at the current price which is fluctuating at about 7 to 10 dollars, you can see the profit that comes as a reward for being able to buy and Hold. This is exactly what Holding implies.

For me, I would prefer Holding because I love investment which comes out with high returns and as per trading, there are more risk involved in it.

Thanks @alphafx for this wonderful lecture. Have learnt a lot from it. Thanks for reading through my post