Steemit Crypto Academy Season 2 Week 3: Trading and Holding - Two Sides of a Coin assignment submitted to @alphafx

Every business or trade around the world has its own business strategy, and to advance in any line of business you do by default there are some certain steps you must observe. Cryptocurrency has become one of the profound market trade around the world, many persons both young and old have become partakers in crypto trade. Crypto marketing has its ups and downs, yet many persons who understood the basics of such trade have a way of maneuvering the loss and making more profit.

There are principles that every investor who is trading in cryptocurrency must observe; one is buying and selling of cryptocurrency, and the other is buying and holding of cryptocurrency until a stipulated time.
From my observation, I have come to understand that the later has much reward more than the former. Though they are faced with risk such as market downturn, unfavourable conditions and other uncertainties, yet they have much reward after the transaction is completed.
Thus, the ability of an investor or trader to buy a cryptocurrency, whether Bitcoin or Etherum, through online payment or mining and stored it in a crypto wallet for a stipulated time is called HODL.

Holding Bitcoin in the crypto market is very challenging because most of the times investors cannot tell what may be the outcome of the stock they are storing. Whether the price will reduce in due time, or they will be at lost, or they downturn in the market may be unfavourable to them.
It requires diligence, patience and consistency before one can succeed in holding a cryptocurrency. Also, in as much as there are many digital wallet in which a trader can store its cryptocurrency, the type of cryptocurrency wallet an investor uses can also helps to determine the nature of his trade.

DO YOU HOLD ANY COIN? TALK ABOUT THE WALLET TYPE YOU PREFER/ WOULD PREFER HOLDING.

Sincerely, I have being looking forward to when I'll be trading on cryptocurrency, until I met Steem coins. As much as like to be trading on Bitcoin, am glad that I trade in this platform though am new.
So currently, I don't hold any coin. Most if the things I do on Steemit is to buy through the vote I got in my post and then sell it out.

The world is growing high in technology and many of the things we do today is now digital. I understood the security, privacy and assurance that Cold Wallets offers but I still prefer Hot Wallets, such as Mobile and Desktop Wallet.

Mobile and Desktop Wallet is a wallet that can be easily installed into your mobile phones or desktops, which can be used to store up your cryptocurrency. It may not be the best or the most secured wallet, but it is portable to carry and very much accessible unlike the paper or hardware wallets. It is true that this kind of wallet can be easily hacked or malfunctioned due to digital hackers but it can serve its major purpose and that the exchange of cryptocurrency or fiat currency.

WITH SCREENSHOT, SHOW HOW TO PERFORM SPOT TRADING ON ANY PAIR OF YOUR CHOICE.

Spot trading is the buying and selling of cryptocurrency for the purpose of making profit through the flunctuation in prices of the coins/fiat currency.
The investor must have the ability to determine when is the right time to exchange his cryptocurrency for a fiat currency or another cryptocurrency, depending on when the flunctuation of price will be favourable to him. The exchange can be Bitcoin for Etherum or steem coin to litcoin as the case may be.

STEPS ON HOW TO PERFORM SPOT TRADING

1. I log into my Blockchain wallet (mobile or desktop wallet) account. Then you will see my home page.

1. You can from the home page analyze the prices of other cryptocurencies and determine the price at which they are sold.

1. Once you have made your decision on which one to exchange, then you select the "swap" option i.e spot trade which is down on your screen.
   It can be Bitcoin to Ether.

1. Finally, you can now place your exchange order, whether you are to buy or to sell.

HOLDING OR TRADING, WHICH DO YOU PREFER AND WHY?

In as much as the purpose for trading on cryptocurrency is to make profit, there is also a need for one to be determine at what level of success he want to achieve while trading.
From my research, I have come to discover that with patience, diligence and determination, one can actually earn a lot when he holds than when he trade. Though it is difficult to hold your trade when there are possible means at which you can sell it and still make more gain than the capital you give in. Also is hard in the sense that human needs are insatiable, maybe in the process of trying to hold on to your trade until the possible time at which you can make your sell, an immediate need may occur which requires you to make your trade whether the market price is favourable to you or not. Holding your trade is much more risky than trading, and to those who take more risk while trading on cryptocurrency, there is always more reward.
One thing is for sure while holding your trade, and that is however the market price may be there is always reward for them as long as the hold on to that speculated time at which the market price will be favourable for them to make their trade.

Meanwhile, as a young investor, I have not come to the fullness of this principle of HODL, and prefermaking my small gain on trading while the time is now than holding my trade until a speculated time when the flunctuation of price will be at my favour.
Well, I have seen where this principle of HODL works: my friend when he was in secondary school started trading on Bitcoin without even knowing the full details of what is all about. He stored much Bitcoin in his Blockchain wallet without trading with them. When he was about to graduate, he was amazed to see how the price of Bitcoin rose at that time, and that was how he made his first 1 million Naira at such young age.

For me, why I like trading than holding my cryptocurrency was because unlike others, it is my means of livelihood. I needed the money to satisfy my immediate want. I will be happy to store or hold my cryptocurrency in my mobile wallet than trade it if I had another means of sourcing for funds to satisfy my need.

However, I must say that the best way to make profit while trading on cryptocurrency is to hold your coin for a speculated time and then make your sell when the flunctuation in market price is favourable to you. That is how my friend made his first 1 million Naira and I must say I like that kind of success.

I believe this is my little beginning in trading on cryptocurrency and with time I will grow in the system. And when that time comes, I can migrate to the principle of HODL, which I believe will bring about high rewards even as though the risks are high too.
So for now, I prefer trading on cryptocurrency than holding it.