There are many ways to making profits from cryptocurrency so, you choose which path to follow as a cryptocurrency enthusiast. Also, in the cryptocurrency business, it is either you are a trader or you are an investor. There's a huge difference between trading and investing so, basicallly, people do one of the following or both depending their skills level and financial plans or goals. I for one do the both and I'll talk about which is better as we proceed.
Trading is quite different from investing. Trading entails buying coins and selling them for quick gains and it is always short term profits. Whereas investing is always for long term plans and capital gains. In other words, Investing involves holding buying coins in its early stage and hodling them till it moons greatly without selling off for cheap gains.
Do I hold any coins?
Yes! Because I am an investor as well as a trader! I believe in venturing into the two. While trading to make short term gains, I buy and hold gems with great potentials. One of those coins I am currently hodling includes; Tatcoin ($TAT), HaggleX coin ($HAG), Steem, WIN, DENT, SPORTS, PundiX and many others.
Speaking of the method I use in storing and/or means of HODLing these coins, I place the security of assets first in the choice asset savings. First off, I do not store or hold my coins on an exchange rather I store them in wallets and one of such wallet is the Trust Wallet.
Why do I choose to store my assets in a wallet rather than on exchanges, one may ask. The answer is quite simple and straightforward; assets are safer in wallets than on centralized exchanges. With wallets, the user is in-charge of the private keys whereas on exchanges, private keys are in the custody of the exchange itself.
Meaning that, security isn't guaranteed when you leave your assets on an exchange. Hackers could attack the exchange and steal funds, the exchange itself could misplace the keys or fold up. So, this is why I prefer storing my assets in a wallet rather than on an exchange.
Hodling or Trading
Both are good and proven ways of making gains in the crypto space but personally, I prefer holding which talks more of investing to trading. This does not mean that I do not trade for short term gains, I do but I do more of investing. Just like Warren Buffet said, "traders make gains but holders get rich"!
A Spot Trade Sample
Spot trading is one of the trading methods and it is the simplest. Asides from being the simplest, it is the safest and less risky in my opinion when compared to trading methods like Futures trading. In a nutshell, spot trading refers to the process buying a coin at a low price and then selling off at an increased price.
For example, I bought some BTG at $85 and there's been an increase in the price of BTG to above $90. Hence, I initiate a sell order. Below is how to sell in spot trading;
First off, select a trading pair you want to convert your coin to. In this case, the coin is BTG and I want to convert it to USDT hence, I select the BTG/USDT pair and it brings me to the interface below:
Next is to set the price wat which you want to sell your coin and then the quantity. In this case, I want to sell off only 25% of my BTG so, I click on 25%. Once that is done, the equivalent in USDT is shown in the last row ($22). Last thing is to click on sell. When the price of BTG gets to my set price, the sell order is then filled.
Noteworthy is that buying a coin on spot trading takes the same pattern as selling a coin. So, we see that spot trading is quite easy and simple!
cc
@alphafx
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