Re-posting II Steemit Crypto Academy Season 2 Week 3 | Work from Home Task for @alphafx: Trading and Holding II by @sadiaanyat

Hello to all steemians! Firstly I would like to Thanks to @alphafx for sharing such an informative lecture where i learnt a lot about wallets, type of wallets , holding and trading. After reading the lecture and doing research on each question, i am going to write my homework task.

Introduction of Wallet

First of all, i will clear the concept of Cryptocurrency Wallet before moving toward the lecture.

Cryptocurrency Wallet: The crypto currency Wallets are actually the application which you can install in your Pc or Mobile phone such as MetaMask, Hardware wallet, Hot wallet, Cold wallet, etc. These wallets work for storing your crypto assets. You can get/cash your stored assets back from wallet at any time.

Some Important Types of Crypto Wallets:

Following are some famous crypt wallets.

1- Hot Wallet
2- Cold Wallet
3- Software Wallet
4- Decentralized Wallet
5- Hosted Wallet
6- Hardware Wallet

Out of all these, we will explain only Hot and Cold wallets in this assignment.

Hot Wallets: Hot wallets are frequently used wallets but they are not as much secure as the cold wallets are. These wallets can be stored only on those computers which are connected with internet.

Cold Wallet: Cold wallets, as compare to hot wallets, are more secured and are stored over the physical medium. In case of Cold Wallet, It is not compulsory for computer to must be connected with internet.

Question 1: Do you have coins? Talk about the type of wallet you prefer would prefer to keep

Do you have any coins
I got highly inspired by crypto currencies and trading when i read the lectures of crypto academy and opened my account on Binance.com. I have some Steems and Steem dollars in my wallet and i have decided to invest my assets for getting profit on binance because binance is easy, fast and less costly.

But in last week, i have studied about risk aversion. So as a bigginner, i would like to invest my assets where the risk rate would be low and profit rate will be guaranteed.

Talk about the type of Wallet you prefer to keep
I have studied about many wallets and conclude that binance is perfect to invest for the investors who are new and don't have much experience working with crypto currencies as it is user friendly, easy and fast. You can invest in any coin and can generate as much profit as you want. As i mentioned above that hot wallets are not much secure, so binance always hold more percentage of your invested coin in cold wallet and a very small amount is stored in hot wallet. Binance is decentralized, it's mean that user can do trading without any third party and have full control over his/her account. Many crypto currencies are working on the binance platform including Steem, ETH, BTC, etc.

STEEM: Steem is a crypto currency on the binance which is getting popularity everyday. The value of the STEEM getting high and high and many people are preferring to invest in Steem. Market capitalization of this currency is 365 billion dollar So this is proved that this crypto currency have a very bright future.

^{Current price of steem}

ETH: Binance also support the ethereum. A lot of users are there who invest there assets in ETH and keep holding unless and until they get a very good profit. The users hold there ETH on binance account or any other wallets. Binance allow you to trade your ETH crypto currency with many other crypto currencies.

^{Current price of ETH}

BTC: The users are allowed to sell the bitcoin on binance platform with no transaction fee. BTC is also decentralized which mean that there is no any third person and transactions are occured P2P. Users have full control over there accounts.

^{Current price of BTC}

Advantages of Binance

Trading fee: The binance is prefferred more by new comers and even by experienced investors because the trading fee of binance is zero.

Security: The binance is decentralized platform it mean the user have the total control of his account. No third part involve.

Offer fiat currencies: Binance is a platform which offer you multiple fiat currencies(more than 50)

P2P trading: Binance is decentralized platform where no third party is involved. the trading is take place directly between buyer and seller.

Fast: Trading speed of binance is very fast.

User friendly: The bigginers are mostly suggested to do the investment on Binance platform because it is easy to use, understand and it's front end is user friendly.

Question 2: With screenshots, show how to spot trade any pair of your choice

On binance platform, when we sell our crypto currency in order to purchase another one, that crypto currency is transfer from our spot wallet to your earn wallet and hold there unless the market goes up and you get a high reward.

I am going to spot the trade of pair steem/BTC. I am going to share the steps of how you can but the steem by selling your BTC and how you hold you assets in wallet unless you hit a specific profit amount.
_{^{Note: I don't have BTC in my spot account right now, so i won't be able to purchase the steem but i will show you all the steps and you will be able to purchase the steem by following those steps}}

Steps To Spot Trade of steem/BTC

Step 1- Go to google and search binance.com

Step 2- A page will appear there.

Step 3- If you have nor registered yet, go and register yourself first.

Step 4- If are already registered, then just click on the Login button and enter your user name and password.

Step 5- after some security verification, a new page, binance interface, will be opened.

Step 6- Click on the market button from manu bar. a new page will be open where there will be multiple tradeing pairs.

Step 7- As we want steem/BTC pair to spot the trading from all those pair so just search from steem.

Step 8- The steem/BTC pair will be appear there. click on the trading button. A new page will be opened there.

Step 9- You will see a graph there.

On the side, You will be asked that how much BTC you want to sell in order purchase Steem. In upper block, enter the BTC amount you want to sell and i n below block, the steem in return of those BTc will be appeared.

Step 10- i will not be able to buy steem as i don't have BTc in my wallet. But you will surely be able to buy as much steem as you want by following the above steps.

Step 11- Go to you wallet back. Click on wallet and select the Spot from drop down list.

Step 13- A new page will be opened there. Search for steem

Step 14- The total steem which you have purchased will be appeared there.

Holding or trading, which do you prefer and why?

I will prefer Holding
I have joined the binance recently and i don't have much knowledge about trading the crypto currencies. I have learnt a lot from last week' lectures about the risk involves in trading. I cannot take risk of losing my assets so i will go with the Holding. After predicting the future value of an assets, you can gain profit by holding the asset.

The changes are occur every time in the world of crypto currency. Some time the market goes up and investor sell there assets then to get good profit. Sometime the market goes down and selling you assets at that time will return in a big lose. The investors buy the assets at that time.

In holding, You just need to hold a coin for specific duration until the profit rate goes high. Just sell your assets then and earn profit. You do not need to worry about market ups and down and checking the market price every second.

Conclusion

In this lecture, we have talked about trading and holding. After reading and doing research on it, i conclude that we should study the crypto currencies first in depth before going to invest our money. Always do some research and then invest your money in coin whose future price is predicted high.

There is a risk of lose in trading. It is true that you might get good reward in trading but some time it may be a disastrous and you may lose your money. If you cannot bear the risk of lose, you should not take of risk of investing your money for some duration. Beginners should not take this risk trading. There are also many other options on binance where you can invest and eran. After predicting the future value of crypto currency, holding the crypto currency is best option.