Introduction.

Hello my eSTEEMed STEEMians and to you professor, hope your doing well and everyone around you. I want to say I really love this topic and I hope you like my task.

Holding Cryptocurrency

There are different types of wallets used by cryptocurrency users to hold or store their cryptos; cold and hot wallets.

Cold wallets.

These type of wallets are not connected to the internet. One good thing about this type of wallets is that they can't be hacked or tempered with, but are very difficult to use. E.g paper wallets, hardware wallets, offline software wallets....

Hot wallets.

These type of wallets are the common ones we use to send and receive cryptocurrency, which are connected to the internet and are much more easy to handle and easily accessible. E.g exchange wallets, web wallets e.t.c....

Do I hold any coin??

Honestly, I don't have any coin for now, apart from my steem power... Though I had a lot before, but I have traded them all and I'm currently not holding any for the meantime.
Below is a picture of my roqqu account, showing the cryptocurrencies I once had.

Which wallet type do I prefer and why??

Yeah..... I prefer the hot wallets

Reasons

1. They are much easier to use for beginners, making it user friendly.
2. It is easily accessible since it is connected to the internet.
3. Talking of security also, it is also well secured and very hard to hack.
4. There are also no charges as it is free go use.

Now, let me show you all how to perform spot trading using the binance exchange.

First, what is spot trading??

The act of trading/swapping a cryptocurrency or Fiat currency for another cryptocurrency is what we call spot trading.
It is normally done in pairs; it can be STEEM/BTC, TRX/BTC or BTC/USDT.......

Now, see how to do spot trading on binance exchange.

1. Firstly, open your binance account and click on the "wallets" option at the end.
   

2. Secondly, click on the spot option above. This area is where your spot trading takes place.
   

3. Now, for this homework, I'm using the STEEM/BTC pair. So I clicked on "STEEM".
   

4. If I want to perform a spot trade, it is necessary that I have some fund in the wallet which I want to exchange for. Since I'm using STEEM, let's say I deposited 5000 steem coins in my steem wallet for the transaction.
   

5. Now let's say I have deposited the 5000 steem coins and I want to go to the trading, u pwill just have to click on the *"STEEM/BTC"" option where I circled it.
   

6. When this page opens, click on the "sell" option since you want to sell the 5000 coins for the BTC.
   

7. Now we want to sell 5000 Steem, after inserting the amount, we will be given the equivalent amount in BTC.
   

8. Now after clicking the amount you want to exchange it for, click on sell and hurray!!!!! You are successfully done with spot trading.
   

Holding or trading, which do you prefer and why?

Honestly, I prefer trading because you get to exchange your cryptocurrency your either Fiat currencies, or to other cryptocurrencies which you think might have a good market value in due time.

Conclusion

Cryptocurrency itself requires hight thinking and initiatives, so while we posses different types of coins, we should know how to use them to make it profitable for us, whether holding it or trading it. Thanks to you Prof @alphafx for such a great homework task.