Steemit Crypto Academy Season 2 Week 3 | Home Work Task for @alphafx: Trading and Holding

Good day Steemians. I will like to thank Professor @alphafx for allowing me to be part of your lectures about Holding and Trading. And am happy to submit my Assignment.

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To begin with, the aim of every investor or business-minded individual wants to make a profit in the business he/she is into. Hence to a need to increase profit and not losses.
This aim or idea also reflects or applies to trading in cryptocurrencies. So one may want to know the methods applied when investing in cryptocurrency.
They are two major methods of investing in cryptocurrencies, holding and trading so to speak.

So basically, with “holding” you have to buy a cryptocurrency at a lower rate or lower price and then keep it in your wallet for some time with the hope or anticipation that it will increase in price within a specific period so you could sell them to make a profit.
So to answer the question of “do you hold any coins?”. I do not hold any coins for now but after reading your lecture notes, I now develop the interest to hold coins in the future.

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Now the type of Wallet I will prefer Holding in

In Holding, one has to have a safe in which cryptocurrency can be kept safely till the time due for it to be sold out, and this call for Wallet.
So in simple terms, wallets are more like a safe to keep/hold your cryptocurrency. Wallets do not hold cryptocurrency but rather they are equipped/prepared to help a user have access to the blockchain and perform activities such as transactions.

Wallets come in two various forms, this Cold Wallets(wallets that have no internet connection) and Hot Wallets( wallets that are connected to the internet).
However, types of Wallets include Paper Wallets, Mobile and desktop Wallets, Offline Software Wallets, and Exchange Wallets just to mention a few.

Wallet type I would prefer Holding in

Among the various type of Wallets at my disposal, I would prefer Exchange Wallets for Holding.
One reason I prefer it is that this type of Wallet is a form of Hot Wallet, meaning it has an access to an internet connection, hence you can access your cryptocurrency (either Bitcoin, Ethereum, Steem, etc) where ever you are and at any time. Coinbase, Binance, and Huobi are few examples of Exchange Wallets.

Secondly, with Exchange Wallet, the exchanger(eg Binance) keeps the private keys of the wallet. This means that your cryptocurrency is stored in their wallet but you are given access to it through or via an account. And that makes your coins or cryptocurrency safer and secured. Also, it is to use when it comes to the payment system. With Exchange Wallet, you can make payments from wherever you are without any stress.

Again sellers or buyers are relatively made available to you at any time. And so you have various buyers to sell to whenever you want to sell your hold coins or cryptocurrencies in your wallet. Thus by pairing crypto with other crypto or another fiat, hence making trading much more flexible, convenient, and easy.

Screenshots showing how to perform spot trading on BNB(Binance Coin).

From the above screenshots, to spot trade on Binance Coin, first you need to first of all deposit an amount onto your Binance account. It could either be in fiat or crypto.
And to do this, you have to click on the place marked red in the 1st screenshot, a deposit icon will show, follow the process to deposit.

In the 3rd screenshot, the place marked red is where you can find the various pairs you want to spot and that moves us to the 4th screenshot.
In the 4th, you will see the place marked red(usdt) and when you select it, the green marked part will appear showing you various pairs from which you select from (thus BNB/USDT).

And the last 5th and 6th screenshot is where you Input the price at which you want to buy, and the price you want to sell respectively.

Now Holding or Trading, which one do I prefer?

Both methods of investment is profitable depending on the skills or plans you put in.
However I will prefer to go in for Holding(most especially with the major crypto currencies).

I prefer Holding because, I do not have good investment skills for as long as crytocurrencies are concern. But the little knowledge I have got from the lecture notes, I have realised that Holding is pretty cool and kinda easy to go with. This is because with Holding, you simply buy the crypto of your choice when the price is low and then sell it when the price is high.

For example, recently BTC dropped to 44000$. So provided you bought BTC for 200$ at that reduced price. And as of today BTC has increased to 53000$, which means that you will be making a corresponding percentage profit of the amount you have invested(200$).
Because with Holding, you decide the period you want to keep your coins before you sell them.

It dosen't matter how long it will take for the crypto in question(either Bitcoin, BTC etc) to increase but as the saying goes “Holdlers always win”. No matter how long it will take it will surely increase for you to sell to make a profit even though some coins do make lapses in their price increment but on the contrary it is rare.

With Holding, it needs lots of patience since you have to wait, sometimes even more longer time before you can sell provided there is an increase in price, but I will still prefer patience over headache and frustration “Trading” comes with since price of the coins fluctuats within the short term than the long term(Holding).

To be me I think frustration with panic selling is low, because since there are exchangers such as Binance, Huobi etc, on the market that can keep your crypto very safe and secured till the time you want to sell, I think Holding is a best move in the regard too.

Inclusion, both Holding and Trading are very good methods of crypto investment and can be very profiting, depending on the skills or strategies you have implemented. However, you stand the chance of increasing your portfolio size if you can combine Holding with active Trading from time to time.

Regards once again to Professor @alphafx
Thank you for reading through...

#holdingvstrading #alphafx-s2week3 #cryptoacademy #steemexclusive #ghana