CRYPTO ACADEMY SEASON 2 WEEK3 :HOMEWORK POST FOR @alphafx by @jimah1k

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Hello @alphafx

I want to say a very big thank you to you for another wonderful lecture delivered. After going through the lecture notes given by our hardworking professor I decided to answer the questions.

Do you hold coins? Talk about the wallet type you prefer holding in

The answer to this question is a big YES I do hold a few coins in my possession these coins are mainly the rewards I get from steemit which are Tronx, Steem,Steem dollar. Apart from these coins I also have in my possession bitcoin which is in my paxful and Binance account. I have been trading in bitcoin for quiet a while before been introduced to steemit which has helped me get a broad understanding of the crypto world so I plan on investing more in more crypto currencies.

A screenshot of Binance account and the coin I hold

As our professor mentioned early in the lecture notes there are many wallets for an investor to choose from. These wallets are grouped into two sets the hot wallet and the cold wallet.
Examples of cold wallets are Hard ware wallets, Paper wallets. And examples of Hot wallets we have Exchange wallet, web wallets.

Among the above wallets mentioned Exchange wallets is the type of wallet am using and prefer. An Exchange wallet as the name suggest allows the investor a lot of other crypto assets he can exchange with. And that is why I prefer this type of wallet because for me I do a lot of exchanges and also allows the investor asses to your coins at anytime.

HOW TO PERFORM SPOT TRADING ON BINANCE USING STEEM AND ETHERUEM AS MY PAIR.

I suggest you download Binance app from either play store or App store.because using it is very simple below are the steps with screenshots.

● After downloading the app register and log in

● Click on Markets.

● In the address bar search steem and select “STEEM/ETH”

● Make sure it is switched to spot

● Enter the amount of steem you want to trade for etheruem I entered 3 steem.

● Click on sell steem.

HOLDING OR TRADING WHICH DO YOU PREFER AND WHY?

First of all these are two different terms in crypto let me explain them and tell which one I prefer.

what is Holding?

Holding in cryptocurrencies means when an investor buys his assets and keeps them in his wallets for a very long time till the price of the asset hits a particular peak before he sells for profit. When an investor chooses to hold he can’t use that asset to trade or anything until the started target is acquired even though he might be tempted to sell some people go into holding only to make loss for example when you buy bitcoin at $10 and you decide to hold until $15 and then it reduces to $7 from that it goes to $5 if you aren’t patience you might be tempted to sell at $5 because you wouldn’t want to loss everything some traders will sell but those will patience will wait so from $5 it start to increase again until it hits $16 those who sold theirs out of fear will lose but those had patients will reap the reward.

What is Trading?

Trading as the name suggest means buying and selling of cryptocurrencies unlike holding the investor doesn’t keep his assets for a long period of time with this method the main aim of the trader is to make fast profit no target is set the trader, he only buys when the price is low and sells when its high to gain profit is practised by most people.

Looking at the two I prefer Trading to holding because first of all I am a student and I need money I don’t have the time to wait for long so I buy the asset when its low and quickly sell when it’s high to gain profits, also I think with the trading investors gain a lot of profits as compared to Holding because of the way the cryptocurrencies increase and reduce on daily bases.

CONCLUSION

My appreciation goes to our professor for this great piece of information which has helped increase me in knowledge in the world of crypto.

Thank you for reading.