SteemitCryptoAcademy Season2 Week3: Trading and Holding for @alphafx

Hello! I am really elated to have learned so much this week, this lesson was really simplified to the barest minimum. A big thanks to the amazing Professor @alphafx.

Source

Do I hold any coins?

Yes, I hold coins. I use the Binance wallet for holding coins. Binance is a centralized exchange platform that is categorized under hot wallets and I love using it to hold coins because all enlisted coins are found there and it saves me a lot of time. I can buy my coins easily and it also gives me access to transfer my coins to other wallets using my keys. It has a user-friendly interface which makes it easy for navigation on the platform and it is very secure.

Screenshot of my verified Binance wallet

How to perform spot trading

I am using my Binance wallet to perform this spot trading and the procedures are as follows:

• Click on spot to perform spot trading
• Choose a pair
• Set the limit
• Set the amount
• Click on buy.

Choose a pair, I already have BTC as a base pair and I will be trading it for IOTX so my pair is IOTX/BTC

Choose the price you will want to buy at. I fixed it at 0.00000097

Select the amount of IOTX you want to buy

Click on buy IOTX

Trade successful and it is shown in my transaction history.

To sell, we do the same thing. The pair remains IOTX/BTC

Choose the price you are willing to sell; I fixed mine at 0.00000115

Input the amount of IOTX you want to sell.

Click on sell

The transaction is successful and it goes to open orders as seen above.

Holding or trading

Both holding and trading are good options depending on your risk aversion and assertiveness.

Holding
Holding is keeping your coins in your crypto wallet and refusing to sell irrespective of the dip but with the expectation that the price of the asset will increase in the nearest future and then you can make profits.

Trading
Here, the user takes advantage of the fluctuations in prices to buy and sell his coin and make profits (or loss, depending on how the market goes).

Which do I prefer?
I prefer trading because I love engaging my assets to make more profits for myself by taking advantage of the fluctuations in the market rather than waiting for a high bullish that may take quite some time. There are risks involved though as money can also be lost while you’re pursuing profits but I love to see the better side of things and the thought of not waiting for a long period of time before taking profits from my assets is just amazing. A friend of mine would always say “if you cannot watch your $50 reduce to $10, please do not trade; just hold your assets”

Conclusion

As a crypto trader, you must be able to identify which method best suits your risk aversion either holding and trading; and also use a wallet that best suits the method.

cc: @alphafx