Hello Steemians,

Hope we are all fine?
Here is my homework, given to me by Prof. @alphafx.

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Question No 1.

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

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Yes, I have two different coin. One is Tron and the other is Ethereum. I kept my Tron coin in Trust wallet for investment and Ethereum in Binance to hold. With the help of Prof. @alphafx lecture I understood the different type of wallet that is good to store coin with low risk.

Firstly, let's briefly define crypto wallet. Crypto wallets is a wallet that store your private keys, keeps your crypto safe and accessible. They also allow you to send, receive, and spend cryptocurrencies like Bitcoin, Litecoin and Ethereum.

Trust wallet is a normal wallet, App we can download on our phone or desktops to hold. It is classified as an hot wallet because it is a wallet that is connected to the internet. On Trust wallet, you can send and receive Cryptocurrencies using QR codes and addresses. Trust wallet can be hack to steal private keys and once the hacker have the private key, they have the wallet and everything in it as well. So now, I know more about the wallet.

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I would prefer to hold my coins in ledger nano X wallet. I made my research and I think it's the best option to hold coin for better security. Ledger Nano X is Ledger’s newest hardware wallet. is the easiest way to secure your Bitcoin and cryptocurrency offline. In the case of Ledger, it use something called a ‘secure element’. This allows for more secure cold offline storage of your coins. This protects the private keys from malware. This means improved security over software wallets.

Ledger Nano X is rated the best hardware wallet not software that can be hacked. When you own crypto, what you really own is a private key. You need to secure your privately to secure your funds. So, I think keeping offline will be a very good idea. If you leave your crypto assets online, your private key will be at risk. Ledger provides the highest security standard for your crypto i.e your private key remains safe in a secure chip.

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Question No 2.

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

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I will be showing us how to perform spot trading using binance. (Binance.com/)

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Log in to the Binance App, Click on the 3lines you will see at the upper part of the page beside the profile logo.

Click on trade. Under trade, We have different types of trading.

Click on Classic. It will take you to a page where you can buy or sell.

If you want to buy, click on buy. You can use limit, market or stop limit system when buying.

• Limit: A limit order is an instruction to wait until the price hits a limit before being executed.Source

• Market: A limit order is an instruction to wait until the price hits a limit before being executed.Source

• Stop limit: A stop order is an order to buy or sell cryptocurrency at the market price once the crypto has traded at or through a specified price (the “stop price”). If the coin reaches the stop price, the order becomes a market order and is filled at the next available market price. If the coin fails to reach the stop price, the order is not executed. Source

You can use any of this order. Input the amount of coin you want to buy. As you are typing the amount, it will be showing the total money (e.g in USDT) you are going to pay. And then click buy.

And if you want to sell, it is of the same process. Limit order, market order and stop order as it is when buying. Input the amount and then click sell.

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Question No 3.

Holding or trading, which do you prefer and why?

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I prefer the buy-and-hold strategy. Buy-and-hold investors tend to hold their assets for an extended period of time to profit from the long-term value appreciation. Which gives low risk of loss.

While trading of crypto is the act of buying and selling the underlying coins via an exchange. Traders are much more active in transactions and seek returns by buying at low prices and selling at high prices. But the risk is high.

CFDs trading are derivatives, which enable you to speculate on cryptocurrency price movements without taking ownership of the underlying coins. You can go long (‘buy’) if you think a cryptocurrency will rise in value, or short (‘sell’) if you think it will fall.source

If you are risk-averse and your primary concern is capital preservation and long-term profits, a buy and hold strategy is probably your best choice. If you are okay with more risk and volatility and are willing to put in the time every day to manage your investments, an active trading strategy could work. source

My sincere appreciation goes to my lecturer Prof. @alphafx and everyone that will be reading this post. Thank you!