READ NEW INSTRUCTIONS! | Steemit Crypto Academy Season 2 Week 3: Trading and Holding - Two Sides of a Coin

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First I wish to appreciate Professor @alphafx for an incredible lecture for this week, and am happy being part of the class.

Nevertheless, I would like to answer the given question as follows.

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

With a clear cut of certainty, I would say yes I hold a coin although at a very minimal quantity outside of the steemit blockchain system precisely deposited on the Binance exchange platform where I exported it to explore the system as I gain certain strategic knowledge from the professors lectures. And the very coin I hold at the moment in the exchange is BNB.

MY PREFERED WALLET TYPE: HOT WALLET
On the other hand, since am just getting use to the exchange systems, and fully understanding the consequences that reverberates from embarking in an unwitty trade, I have decided to hold my coin in a hot wallet as I go through some trading lectures and i'm precisely using the BNB wallet currently, despite I have explored Huobi exchange for instance, but the incredible features on the Binance exchange has lured me to their platform.

Screenshot of my BNB wallet

This is actually a proof of my hot wallet in Binance which gives me a more relaxed mind in making transactions, although I have already started practicing with the system in navigating to truly understand it's technical deposits.

Despite this as my functional wallet, I'm very careful keeping my keys securedly although we the both parties (Binance and I ) have a stake in maintaining the integrity of our security levels, on my side though I prefer using the Binance App, I have it in my temples that it is contingent upon me to secure my gadget and my keys as it's the duty of Binance to keep security of their system as their is the tendency of hackers manipulating into the system on like what happened in 2018 when hackers stole more than $40m worth of BTC from Binance so I believe it is contingent upon them to keep security of their system while I play my part as demanding.

I also believe that on the side of a more secured wallet the cold wallet would have been a better option but for the sake of optimized earnings the hot wallet is more ideal for me at the moment since with my little deposit in the system i can segaciously leverage and maximize my profit using the hot wallet. So I believe that security is every one's business which the Binance is always on their toes regardless of the incidence of 2018.

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

Ok let me take us through my experience on how to perform a spot trade using the Binance and the little token of BNB worth of $14.31 In my wallet, although the token in it is just a remnant from the last transaction which I executed few days ago, so let's go.

• After logging into my Binance account on the exchange, I click on my wallet at the down right hand corner of my account interface

I'm now in my wallet proper so I chose the token that is pairable with the BNB, ok let's say now I chose the BUSD to spot-trade with my BNB.

After choosing the BUSD to pair my BNB, I now change the limit on this interface to market for an instant exchange although based on my demand after it, so I click on 100% that is to exchange all
stipulated BNB to BUSD value and finally I click on sell.

At this point the balance now reflects on my wallet as BUSD as I exchanged it at the spot trade interface.

Holding or trading, which do you prefer and why?

As it stands, am still gathering momentum
both financially and technically on my trading strategy and through different medium and personalities am really getting the enthusiasm to venture into the trading system. So I will say trading is preferable to me with my reasons.

1.TO MAKE MORE GAIN/PROFIT:
I have come to realize that life is full of risk and there is a saying that you must take risk to join the millionaires and based on this concept there are countless times people has lost their tokens while trying to transfer some token to another wallet may be due to inappropriate use of the receivers address or memo they loose their token. So I would prefer to trade and make more gain than just holding and probably loosing it at the end of the day.

2.TO STAND OUT AGAINST PRICE FLUCTUATION (VOLATILITY)
Everyone knows about the irrational volatile nature of crypto currencies, for instance I have seen the steem rise and fall at different intervals likewise other tokens. Now let's assume that i have 500steem and I traded cautiosly with it and made an additional 300steem summing it to 800steem and another person just kept about 500steem in his wallet, now due to the volatile nature of cryptocurrencies the price falls from let's say in naira value N400 to N300, that means I will be left with N240,000 while my colleague who prefers holding he's in his wallet will be left with his crypto value stipulated N150,000 because of price fluctuation, with this illustration I have stand out from my colleague despite we once had equal steem but due to my efficient trade deplomacy, i have been able to outsmart the market's setbacks by trading my steem instead of just holding it in my wallet.

3.DECREASE IN THE QUANTITY OF TOKEN:
We can all agree to the fact that Rivers does not stays at the same volume for ever, it either increases or decreases based on certain factors like drought or rain. Likewise no one will sell 50steem for instance and it remains 50steem again. So if someone keeps selling his token without deploying it to trade one day he wouldn't have any other one to sell, on the other hand if I prudently and cautiously deploy my technical know-how to trade there is every tendency of increasing the quantity of my token.

4.TOKENS WILL NOT BE SUPPLIED FOR EVER:
Its obvious to me that tokens are not littered any where for people to pick rather you work for it. For instance there is a forecast by @sapwood that around 2030, those that has built their steem power will be in charge of the system, now this is what will happen, people without a reasonable knowledge of trading will sale their token and be left with nothing because needs will definitely arise while those with good knowledge of trading may deploy a fraction of their steem to trade and there make some reasonable profit although this only apply to lives on steemit. So with this knowledge I would prefer to trade and get adapted to trading so as to hold more token in the future.

5.TO GAIN GOOD FORECASTING KNOWLEDGE OF THE MARKET:
I realize that a mere seller of token will only sale when the price is high without observing actually the trend of the market, but a token trader knows when to sale and also when to buy based on his forecasting and and indepth knowledge of the market. So trading gives one a vast knowledge of the market's operation despite the volatility of cryptocurrencies.

CONCLUSION
I really understand the implications of trading without a good knowledge of the market which in other ways will lead to liquidation of the traders liquid. And on the other hand a sound technical know-how in trading will always keep one in charge of the market although not without a little loss if one actually trades cautiously and engaging the right techniques of trade. But it's not all that bad to also hold your token especially if one is antecepating a future rise in price but we still have to bear in mind that the keg is only filled with a continuous drop.

Thanks to professor @alphafx for your incredible lecture and also to @steemitblofg for creating this beautiful community where we are exposed to a more foresight in certain realities.

Cc:@alphafx