Crypto Academy Week 11 - Homework Post for [@alphafx]. Trading and Holding - Two Sides of a Coin

Greetings again @alphafx, my name is @allbert and this is my second submission for your course. The topic you chose for this week is quite interesting and has made me think a lot about my possibilities ahead .

So let's get started.

_{Image edited by me in Powerpoint}

Q1. Do you hold any coins? Talk about the wallet type you prefer/would prefer holding in.

Yes, I currently hold cryptocurrencies for some time now, although I wouldn't call them long-term investments.

They are DOGE, SC, and TRX. As I mentioned these three cryptos that I currently own I use them for Spot Trading. I have chosen them for different reasons, from the news I have seen on the Internet to studies I have done on the platforms.

This way leads me to currently have a preference for a Hot Wallet, specifically an Exchange Wallet.

What I love about this type of wallet is its ease of use, this was the first type of wallet I used in a crypto exchange. I currently use Poloniex, which I really like because it has a simple to understand interface and although I know it has its cons such as the security in terms of private keys, it actually fits perfectly to my current needs.

The first time I created the Poloniex wallet, I exchanged the TRX received in Steemit to Steem and then withdrew my rewards; however, in Crypto Academy, I have learned more options as Spot Trading, and I am currently holding some cryptos of my interest. I have learned that it is much more profitable than simply converting coins and then withdrawing.

My trades are low capital, between $60 and $100, so I'm not so concerned about the level of security, I consider more important the ease of finding the desired pairs and make trades quickly, so I consider that for now, it's fine for me.

However, if I had the opportunity to make large investments, thousands of dollars in cryptocurrencies and hold them for the long term, I think I would prefer to use a Cold Wallet, especially an Offline Software Wallet, as they offer more security against hacking. It would be a better option as I would not be interested in doing constant exchange transactions, so I would not mind sacrificing ease and speed for security.

Additionally, I think I would choose Offline Software Wallets, due to a personal problem I have... I tend to lose things, for example, Paper Wallets or Hardware wallets. I think that if I had a Hardware wallet I would do what happened in an episode of the TV series Big Bang Theory, when they lost the USB with the passwords.

Q2. With screenshots, show how to perform spot trading on any pair of your choice.

For my example, I have chosen the DOGE/USDT pair.

I have chosen this pair since as I mentioned I have been holding DOGE in my wallet since Elon Musk Twitted that he would send DOGE to the moon. Naturally, I have done some Spot Trading since then, giving me some profits, and naturally, I suffered and was miserable with the downtrend experienced last weekend.

My Spot Trading will be done on the Poloniex platform. All images have been taken by me from the Poloniex website on April 26th and edited by me. ^Source

1- The first part would actually be to create a Poloniex account and add funds to the wallet, but assuming that this step is common among all platforms, we will skip this step. So our first step will be to access the WALLET section.

There we can see (purple box) the cryptocurrencies we currently own and also a list of cryptocurrencies (alphabetically ordered) available on the platform (blue box).

_{My Poloniex wallet.}

2- Select the cryptocurrency of your preference, in my case I will select DOGE. When doing so a new window will be displayed with the available pairs within the platform. I will select the DOGE/USDT pair.

_{Select the cryptocurrency pair.}

3- You will be directed to this screen where you will find the candlestick chart of the selected pair. The exchange interface for selling or buying the asset is the one marked inside the red box. You then select whether to sell or buy.

_{Select whether to sell or buy}

4- In my case, as I already have DOGE for several days, I chose to sell. Then you must select Order Type and limit Price (current price if you want to trade immediately or another price if you want to place the order in the future).

Finally, select the amount of the transaction, the total amount USDT will be indicated in this section (red box). And click on the sell DOGE button.

_{Select amount of the transaction}

5- After waiting a few seconds, the order will appear in this part indicated by the red box. And later the USDT will be transferred to the wallet.

Q3. Holding or trading, which do you prefer and why?

I think both strategies are good and can be applied in different situations and under different circumstances. To be honest I would like to be able to make a big investment in a good project and just hold. However, for my current situation, I have to choose Trading.

The reason why I choose trading is that I have realized that for the capital I currently manage is better to perform specific operations in certain cryptocurrencies that attract my attention through the news and social networks.

I also believe that through trading I can have more opportunities to increase my money. I can have more opportunities than just waiting because, during an uptrend, for example, the price oscillates several times. So during a single trend, I can buy and sell several times.

_{Example: Steem Dollar / US Dollar chart, 15min. Image taken by me from Tradingview website. ^SourceGreen arrows show the multiple opportunities to buy and the red arrows show the multiple opportunities to sell during an uptrend.}

Conclusion

I think a wonderful aspect of holding and trading is that both can be useful if used intelligently. There is no one better than the other.

As it was said in class, the success of each one will depend on the skills we have and on choosing the strategy that best suits our style.

The worst mistake we could make is to let ourselves be manipulated by a fashion or by a person. The best decision is to document, read, learn, and then make our own decisions.

My personal recommendation: In the case of holders, have patience and do not get carried away by the currents. In the case of traders, set short and clear profit goals, and do not get carried away by greed or fear, but stick to the strategies. Have a cool head!.