STEEMIT CRYPTO ACADEMY SESSION 2 WEEK 3|| HOME WORK TASK FOR @alphafx ON HOLDING AND TRADING

in SteemitCryptoAcademy3 years ago (edited)

I thank Prof. @alphafx for this great lecture on trading and holding. I have been able to know about different wallets and base on your lecture, below is the solution to the assignment on holding and trading of Two sides of a Coins here presented by @justiceanietie

QUESTION 1.
DO YOU HOLD ANY COINS? TALT ABOUT THE WALLET TYPE YOU PREFER/WOULD PREFER HOLDING IN:

The coins am currently holding is TRX from my Roqqu wallet.

Roqqu Wallet:
Roqqu is a wallet that helps a trader tohold, buy and sell digital assets and this wallet makes it easier for traders/ investors. Whether buying/selling or holding, it ensures the security of the assets. Roqqu is the fastest and savest wallet to buy and sell crypto assets. It also accept crypto currencies. Since I started using roqqu, I have no challenge with the wallet.

WHAT IS TRX
Tron is a basic unit of accounts From blockchain. Its where the value of all other token come from. It is equally the medium currency of all TRC based token. Tron is known for a very strong connection of the entire Tron system. It is known for a very strong application that powered transactions.

images (1).jpeg

https://www.google.com/url?sa=i&source=web&cd=&ved=2ahUKEwjIn6fktqPwAhWJFMAKHX-5BhgQjhx6BAgBEAI&url=https%3A%2F%2Fethereumworldnews.com%2Ftron-trx-platform-continues-to-grow-its-crypto-ecosystem-liveliness%2F&psig=AOvVaw3oAI7S1LCZ-jE1DAWMZxeVS&ust=1619784632952820

LEVERAGE:
Leverage is an amount of cash offers by the broker to the trader to enable the trader to open more positions. This leverage allows the trader to make more money from the market and it equally involves high risk. Some brokers offers 1:10, 1:20, on crypto trading. While in forex and other product it is common to see leverage offered to 500:1, 1000:1
Leverage is to the advantage of the trader. What you should know is, the broker lent the trader the money and when the trader has made the money, the broker takes back the money and allows the profit for the trader.
Example: IPhone price is $400 and the update is, IPhone will drop in price next week, so I collected my friend iPhone and sell it for $400 and by next week, IPhone price went down to $200. I bought it back and return it to my friend. In doing this, I just make $200 in returned. This is how leverage works.

HOLDING CRYPTOCURRENCY
Holding in terms of Cryptocurrency refers to a process where an investor made up his mind to invest (buy) a particular crypto asset and hoping that the value of the asset will rise in future. When the price rises, he sells and make profit of his investment. But if the price falls bellow the value of the investment, he sell at a loss and if he is not mindful, the investment can get to a zero balance, meaning that he lost the investment.
Hold is associated with bitcoin. Bitcoin always throw off the currency market when opperating on blockchain technology.

RISK OF HOLDING: New traders who come to know about crypto will see the bullish market and get excited and enter the market when the price is hign, then immediately the price falls short and they will start looking for the way to sell the asset, by so doing, they close with a loss. Especially for beginners without experience.

PROPER WAY TO HOLD
The proper way to hold crypto asset is by buying below the intrinsic value and hold for 1 or 2 months even for a year and monitoring the price to rise. Once it rise, you average out and take profit before the next draw down of price. Note those who trade the crypto market without experience are taking high risk.
When holding, you have to keep way emotions and be patience enough for price to be bullish.

Comparison of Holding and Trading

  1. Holding crypto asset is easy but has some problems especially for the beginners who buy at the top.

  2. Trading is difficult compared to holding and has some pitfall to look out to, but if you are conversant with trading, you will make more profit because you make your choice either to buy or sell.

Holding is the idea for beginners and most friendly strategy. Well as they move on, they can start learning on how to trade crypto assets. By doing this, they should trade just 1% of their portfolio and in a week, few trade should be made.

TRADING CRYPTO

Trade (1).jpg

https://www.google.com/amp/s/capital.com/amp/trade-definition

Trading Crypto is the process of exchanging one assets for another or it involved buying and selling of securities such as shares, currencies and commodities. The primary aim is to make profit by buying low and selling high over time. A trader can be an institution, investors or individual.

  1. SPORT TRADING: I will be using my roqqu app to show you sport trading.
    Below is how sport tradng is done.

Screenshot_20210430-142432_1.png

You can see that I bought Tron and I need to be patience Enough for the price to appreciate in value, then I can take the profit but if the price drops less that my investment capital to zero my investment will be wiped out.

THE BUY AND SELL IN SPORT TRADING

Screenshot_20210430-142708_1.png

BUY:
The buy here is instant buying and once the transaction is accomplished, the crypto wallet will be credited with the value of the crypto asset you just bought. While your account will be debited base on the amount used to buy the crypto.

Screenshot_20210430-142708_1.png

SELL: here is instant sell. In case you are willing to sell your cryptk asset, then you can click on sell and perforn the transactions.

  1. HOLDING AND TRADING, WHICH DO YOU PREFER AND WHY

I prefer trading to holding. This is because in holding a share can keep going down and may be if you are lucky, the price might come to your favour in a long run but it takes time and the trader must be patience enough. While in
Trading you can buy when the asset is under valued, then sell when the price goes up.

Screenshot_20210429-144849.png
Buy low and sell high
Screen short from my forex account

Support and resistance level are marked for easy identification
Screenshot_20210430-153549.png
Screen shot

Screenshot_20210429-144922.png
Currency pairs screen shot

CONCLUSION
Trading is more preferable to holding because it helps the trader to make returns over time and the profit can't be compared to someone who is holding same asset at same date.
So trading is all about your effort, time, controlled your emotion, psychology, have a trading system and risk to reward management and don't forget to always follow the trend because it's said that the trend is your friend.

Sort:  

The question 1 was well answered, 2 was not, 3 neither. The screenshots are from foreign exchange trading not spot trading on a cryptocurrency exchange. This task was not completed successfully, put in more effort next time, ask questions when you do not understand.

2

thanks for participating.

 3 years ago 

Ok thanks Prof

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