Crypto Academy Week 11 - Homework Post for @alphafx|| My Wallet and Spot Trading
It’s great being at your lecture again, @alphafx. I enjoyed reading your lecture, especially as your teach on wallets and spot trading which I am very familiar with.
I will like to write on my preferred wallet, spot trading and my take on holding or trading. Please join me as we explore.
Introduction
The use of wallet in storing crypto assets is one of the most common practices among cryptocurrency enthusiasts. There are several types of wallets out there to be used, thus the choice of the one to use depends on the need of the potential user.
Wallets are of different categories, ranging from exchange wallets, cold wallets, hot wallets, among others as stated in the lecture.
Most people prefer hot mobile wallets, where they can store their funds. As some exchanges can be hacked, it becomes a bit server to store your funds where you are the sole custodian of the password and the recovery phrase.
Although hot mobile wallets could be hacked, it is more difficult, especially if the security information are not made available to third party.
Today, we will be looking at my preferred wallet (Trust wallet), a sample spot trade on Pancakeswap using Trust wallet dapps and why I prefer holding than trading. Welcome to my blog.
My Experience with Trust Wallet
I started using trust wallet in 2020 and within months I fell in love with it. This is where most of my assets are stored.
At the point of creating the wallet, after downloading from google playstore, there is provision for writing down the seed phrase. The back up of those 12 words is very paramount to the security of the wallet.
Trust wallet is a multichain wallet. That is to say I can store tokens from different blockchains. Among the blockchains supported by my trust wallet are ERC-20 tokens, BEP20, BEP2, Tomochain, Solana chain, Tron network (TRC-20), among others.
Presently, I have more of BEP20 tokens because of the favorable transaction fees on the blockchain, compared to the ERC-20 which most cases charges more on gas fee than the value of token to be transferred.
Below is a screenshot of my trust wallet:
Sample Trade on Pancakeswap Using Trust Wallet DAPPs
My love for Trust wallet is not unconnected with the access to DAPPs. One of my favorites is the Pancakeswap. This a decentralized application ranked number one on the Binance smart chain. Here, I buy and sell my tokens, as the DAPP is connected to my wallet.
Thus, any BEP20 token can be spot traded on the platform. for example, you can trade NFTART on the exchange by swapping to BNB or vis versa. The important thing is to get the contract address for the tokens not already added.
When you paste the contract address under search, the token will apprear to be added by you. The added token can now be traded.
Once a token is added to the list, you don’t need to add it again when trading it next time.
The screenshot is shown below.
Why I Prefer Holding Than Trading
I don’t have experience in margin or futures trading of cryptocurrencies. Besides lack of experience, the high risk involved in trading is a no go area for my little funds. So I prefer to hold and only sell when convenient.
There is a joy in holding a token you bought $20 until it hits $200. This can happen without you having to monitor and read candlestick by minutes or hours. This is why I like spot trading. It is stress free.
Conclusion
The use of wallets, which ever type it is, is a sure way of monitoring the portfolio of your investment. It is expedient that the security parameter of the wallet be kept secured to avoid lost of funds.
It is advisable that we use the most convenient wallet and the friendliest type of trade, as well as the most reliable exchange. The choice of where to store your asset should personal and based on how convinced you are.
In crypto, no cent is worth losing.
Thank you for reading.
Scoring
Thanks for participating
Thank you, bro.