Steemit crypto Academy/Week 11- Homework post for professor @alphafx-about Trading and Holding -Two sides of a coin

Hello smart minds,

It is with great pleasure that i participate in this contest organised by professor @alphafx

Without wasting much time, i will go into the assignment proper.

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

Yes, I hold some coins, though, they are not so significantly valued as I just hold very tiny fractions in my hot wallet. So, there is about a dollar worth of Bitcoin (BTC) on my wallet, about 11 dollars’ worth of Ripple (XRP), some half a dollar worth of Bitcoin cash (BCH), and about a quarter of a dollar worth of Litecoin (LTC).

My coins are stored in a hot wallet, specifically Luno, an exchange wallet. Luno may be able to meet the needs of all hot wallet categories, as it also provides mobile and web apps for convenient and universal access.

Hot wallets, such as Luno, are preferred because they are inexpensive to obtain and use, require only basic knowledge, are simple to use, provide on-the-go useful analytical data, secure with 2FA, and make transactions easier to complete in general.

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

To execute a spot trade, one must first decide whether to sell or buy. Let's start with purchasing; to purchase on Luno, follow the steps below.

• First, make sure your wallet is fully funded (I can't do that right now due to restrictions in my country).
• Then, choose the cryptocurrency you want to buy. We will purchase Bitcoin (BTC/USDT) in this example.

• Finally, enter the amount of BTC you want to buy in your local currency, and the wallet will convert it to BTC based on the current market value of BTC. Then press buy, and your coin will be delivered to you.

You must have made some profits after holding for some time, or you most likely trade without holding, depending on what works best for you. You now wish to sell your coins through Luno; here are some simple steps to do so.

• First, head to your wallets

• Next, select the coin you want to trade on, BTC in this case.

• Click on sell and choose the currency you wish to exchange BTC with, either local currency or another digital currency (cryto). We will exchange to our local currency (NGN). There are too options to sell in, either in local currency value or BTC value. Most person prefer selling in local currency value to reduce ambiguity. Finally, input value of the BTC you wish to sell, hit next and have your bank account buzzing or increase the value of another crypto.

Question3; Holding or trading, which do you prefer and why?

I prefer to hold because it has been proven that the value of most cryptocurrencies increases over time. In the long run, holding, despite requiring a lot of patience and self-discipline, may prove more profitable.

Furthermore, by holding, one reduces the anxiety associated with the exchange market and avoids excessive chart and figure analysis. In most cases, holding will bring you peace of mind.
As a holder, however, I find it useful to know when to stop holding and start trading. As a result, striking a balance between how long one holds and when one needs to trade is critical.

Special thanks to professor @alphafx for this weeks lecture. I learnt alot.