Crypto Academy Week 10 - Homework Post for [@alphafx] …

Introduction
Hello friends,
It's my pleasure to be here. Today in this my homework post , season2 week3 on the topic : Trading and Holding - Two Sides of a Coin that was given by professor @alphafx . In this post, I will discuss about the following homework topics below:
1. Do you hold any coins? Talk about the wallet type you prefer/would prefer holding in
2. With screenshots, show how to perform spot trading on any pair of your choice.
3. Holding or trading, which do you prefer and why?

Source

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

Yes I hold coins in both Roqqu wallet and Binance wallet. I prefer holding my coins in Exchange wallet.
Exchange wallet is a service or website where you can buy and sell crypto or convert fiat currency into crypto. In exchange wallet there are market rates that is required for each currency that fluctuate similar to how stock market operate. When you use an exchange wallet, there's also a wallet that is hosted on the website in some cases, these wallets are mostly web-based an app like Binance, Roqqu and Houbi. In this type of wallet you will have to create an account on the website/app of the exchange, sign in and then have access to your wallet.

The good thing about an exchange wallet is that it give you easy access to all of your account information. You can quickly buy or sell crypto, check your balance and do a lot. In such, an exchange operate like bank by holding all your cryptocurrencies for you.
One thing also about exchange wallet is the security risk because your private key will be store on the exchange. If the exchange stop working any day you would lose access to your crypto with no means of getting it back until the exchange start working again.

Having knowing about exchange wallet. Let's take a look at how exchange wallet stores and transfer coins.

How Exchange wallet stores and transfer coins
When you deposit coin like for example Bitcoin in an exchange wallet, they will give you an address from their wallet, which means you're sending to their wallet. The Bitcoin is now theirs. Whenever you withdraw from the exchange, they send Bitcoin from their wallet to the address that is provided. When they send, their wallet uses done coin selection algorithm to select which coins it will spend to send to you. Now because an processes thousands of transactionns like deposit and withdrawals everyday the addressses that associated with the bitcoins being spent for every withdraw that is make will be different.

1. . With screenshots, show how to perform spot trading on any pair of your choice.
   Let's take an example that we want to pair Steem/Bitcoin on Binance app.

• Click on Trade and you will be taking to the corresponding spot trading page

• Go to the buying section to buy Bitcoin for Steem and fill in the price, limit or market and the amount for your order

• Click on buy to complete the transaction

The same steps can be used to Sell Steem for Bitcoin

Note: Limit is the default order type that help you to buy at a specific price. But if you want to place an order as soon as possible, you may switch to Market by choosing a market order, where you can make a transaction instantly at the current market price.

If the market price of Steem/BTC is at 0.00001667, you want to buy at a specific price like 0.00001546 then you can choose a Limit. As soon as the market get to the set price the order will be perform automatically.

Lookingk at the image above you will see a percentage that is showing below the Steem amount box. The percentage refer to the amount of BTC you wish to buy using Steem. Put the amount and click on buy crypto.

1. Holding or trading, which do you prefer and why?

I prefer Trading because it allow me to trade my crypto for other crypto and also for fiat. Trading involves the buying and selling of crypto in a short period of time with that goal of making quick profits.
Whereas as holding measure their time limit in a year, unlike trading that has to deal with days, week and minutes. In trading if cryptocurrency is falling in price there is always a tendency that it will surely raise in price which one can quickly make profits. Although trading is seem to involves a high risk which also give a high returns. Without saying much I prefer trading because is the easy way to earn quick cash.

Thank You all.