Crypto Academy Season 2: Week 3 – Trading and Holding – by @alphafx

Source

Hi everyone, In this homework week 2 task post, I will be answering this week’s task on Trading and Holding, a task by @alphafx - I will be giving my opinion and writing about my preferred type of cryptocurrency wallet, how to spot trade and whether I prefer trading or holding. When it comes to investing in cryptocurrencies, these are very important topics to understand as it goes a long way for a profitable investment.

Wallet type you prefer/would prefer holding in

I have to say, this is a really important subject that anyone who wants to invest in any cryptocurrency asset must pay attention to before proceeding to invest. Investing in a cryptocurrency asset that doesn’t have trusted wallets that are available isn’t always a good idea, except the project provides a secure and non-custodial wallet to store the cryptocurrency asset. This is only the case for new projects, the top cryptocurrencies are already available on a number of secure wallets. For me, my favorite cryptocurrency wallet is the Atomic Wallet.

Source

Atomic Wallet

Atomic wallet is my preferred cryptocurrency of choice for a couple of reasons… Atomic wallet is an amazing wallet that supports a variety of cryptocurrency assets. Simply put, atomic wallet is a non-custodial and a multi-coin wallet. By non-custodial wallet I mean it provides the seed phrase and private keys of the cryptocurrency asset, this gives full ownership and control of the cryptocurrency assets. So it is important to always use wallets that provide the seed phrase or private keys.

Atomic wallet is an amazing an easy to use cryptocurrency wallet that is available for both mobile and desktop, giving users the freedom to use on any device of choice. One of the great things about Atomic wallet is that is supports a wide range of cryptocurrencies, over 300 cryptocurrencies are supported on atomic wallet.

Spot Trading on Huobi Global - LTC/USDT

Huobi global is one of the top crypto exchanges with a wide variety cryptocurrencies available for trading. Spot trading is a very common type of trading performed on most centralized crypto exchanges. On Huobi global, performing spot trading is easy and just a matter of few steps.

• After setting up your account on Houbi global https://www.huobi.com and funding your account.
• Click on balances to review the sub navigations
• Click on exchange account

my screenshot

my screenshot

• On the exchange account page, select the cryptocurrency you want to trade
• Click on the 3dots to reveal the trading pairs available for the selected cryptocurrency
• I choose litecoin LTC so I will be using the LTC/USDT pair
• Click on the pair of your choice

my screenshot

my screenshot

• Now on the exchange

• By default, it will be on limit order. Limit order allows you to determine the price you want to buy or sell any cryptocurrency. You set your price and wait, if the price is matched, the order will be filled. If the price isn’t matched, the order will be left open until it is matched before it gets filled. For quick trade, you can choose from the lowest sell order in the order book.

my screenshot

my screenshot

my screenshot

• Input the price you want to buy, type in the amount you want to buy, you can use the percentage slider if you want to automatically select amount by percentage based on the amount of USDT you available in your account

• Click buy LTC to purchase

• The market order is quite similar to the limit order but the difference is that you don’t set your price, rather you buy based on the market prices on either buy or sell. This method is the fastest because there is no waiting, you just input the amount you want to buy or sell and the trade is filled immediately.

my screenshot

Holding or trading, which do you prefer?

Holding

I prefer holding because I’m not good with technical analyses. I don’t like the stress of always looking at charts and trying to catch the market to make profit from trading, I much rather look for promising and quality projects and invest. Buying cryptocurrencies and holding can be profitable if you make the right investment decisions. Don’t get it twisted, trading can be very lucrative if you have the knowledge and sometimes luck.

A pro trader can make multiple rounds of profit from a particular cryptocurrency than holder can make on the particular cryptocurrency. Same goes the other way round, a holder can make over 200x from a particular cryptocurrency with just a little capital by holding for less than a year than a trader would have made with the same capital especially when adding trading losses as well. But for me, I’m much more comfortable just buying and holding. When I invest in a cryptocurrency, I look at the bigger picture, which is why I only invest in projects that have the potential to become successful in the future.

Conclusion

It is always a good idea to have a specific strategy before delving into any cryptocurrency investment. You either focus on holding or trading or do both but with more focus on one. I trade as well, but it is so small that I don’t see myself as a trader. I’m more of a hodler. Spot trading is the most common type of trading that is available in most of the top centralized exchanges and is probably the go-to type for a lot of investors and traders. Also, before investing in any cryptocurrency asset, it is important to make sure that the cryptocurrency you are investing in is available in a wallet that is trusted and secure. Finally, always do proper research before venturing into any cryptocurrency investment or trading so as to make the best decisions.