Crypto Academy Season 2 Week 3 Homework Post for @alphafx - ||Trading and Holding||by @arahman

Hello guys, it’s another week of the Crypto academy and in this week’s lecture which was delivered superbly by professor @alphafx we will be talking about the topic Holding and Trading.
Below is my homework on the topic.

Question 1; Do you hold any coins? Talk about the wallet type you prefer/would prefer holding in

My answer to this question is yes. Currently I’m holding just Steem. I used to have BTC too on my Paxful wallet but I had to sell it for emergency reasons. I have traded for some time on Paxful and I have also started trading with Steem since I joined this platform.
I wish to acquire more BTC in the near future so I can start investing in it again.

This is what is left of my Paxful account after I sold my BTC

When it comes to wallets, they come in two forms, which is the cold and the hot wallets. A clear example of cold wallets is a paper wallet. And typical hot wallet is exchange wallet.

From my experience in cryptocurrencies, I was prefer using exchange wallets. This is because they provide a variety of cryptocurrencies in which you can trade in.

Question 2; With screenshots, show how to perform spot trading on any pair of your choice.

With regards to this task, I will be using my Binance account to guide you through since I don’t have any coin on my Paxful account.
In order to enjoy trading on Binance, I strongly recommend you download the app either from the apple app store or google play store.

Below are the steps involved in performing a spot trade on Binance (I will be using Steem/BTC as my pair)

• After successfully downloading and registering yourself on Binance, locate and click on “Markets”

• When clicking on markets, make sure to switch on to “Spot” by clicking on it.
  

• The next thing to do is type in the search bar STEEM. You will be shown two pairs, STEEM/BTC and STEEM/ETH. For this demonstration we will be choosing STEEM/BTC.

• After choosing your preferred pair, you can either choose to sell STEEM or buy STEEM. If you decide to sell your STEEM then it simply means you’re exchanging it for ETH and vice versa.
  Click on sell.
  

• Finally enter the amount of STEEM you want to trade and click on sell STEEM. The amount of BTC you will receive will be shown in the box below the amount entered.
  

So basically performing spot trading on Binance is like converting from one currency to the other.

Question 3; Holding or trading, which do you prefer and why?

From my point of view, I think the answer to this question may vary from person to person. This is because every individual has his/her aim and target when it comes to cryptocurrencies.
In the beginning when I started investing in cryptocurrencies, specifically BTC I didn’t have much knowledge about holding and trading and usually got losses. But now I believe that when you’re investing in cryptocurrencies, you should always have patience.

Before you buy a coin, you should know the support and resistance level first before you start investing in that coin. Looking at STEEM, it is best to buy it when it drops to $0.805 or less then sell it when it reaches $1.00 or more.

I do prefer holding to my coins especially STEEM. That way, I always get very good amount of profit. That is to say I’ll buy my STEEM when the value is very low and then hold on to it until it rises up.
For example if I have 100 STEEM and I decide to hold until it reaches $1.00, then it means that I will be getting $100. Then I’ll wait when it drops to let’s say, $0.82 then I’ll buy $100 of STEEM that way I would be getting $182 and would have made a profit of $82.

Another example is TRON since the value of it isn’t that much, holding on to it is a good thing to do. This is because selling it now wouldn’t bear any much profit. But with time the TRON price will increase and selling will bring in good profits.

To put things short, I think holding is the best option when investing in cryptocurrencies as it brings huge profits but also remember that holding too long to your coin can be of a disadvantage since it might rise and fall.
One thing I always put in my mind when holding is that “patience is key to success”

Conclusion

I would like to conclude by thanking professor @alphafx for the lecture he has given. I’m really happy to be part of this community. I hope to learn more from the other professors too.
Thanks for reading.