Steemit Crypto Academy Season 2 Week 3: Trading and Holding - Two Sides of a Coin by @Nav1
Hello everyone, after I went through the wonderful lecture prof @alphafx presented, I was able to get my weekly task done and now ready to submit it.
Question 1
Do you hold any coins? Talk about the wallet type you prefer/would prefer holding in
YES of course, I do hold a couple of coins. In the year 2019, I was introduced to bitcoin and its benefits. For real I didn’t understand what that meant and also haven’t cared enough to conduct research about that. I then went ahead and bought $200 worth of bitcoin and held it in my blockchain wallet. So I stared holding coins in late 2019. Within a month time, I made almost $45 profit and I also decided to quit because I wasn’t able to understand how it operates I didn’t see any need investing into something I don’t understand. I never mind buying and keeping any crypto currency until January this year when I relized bitcoin’s performance over the previous years. So I decided to by and keep $250 worth of btc. I also have $15 worth of Ethereum and also a couple of steem.
I presently and will still prefer to keep my crypto coins in Blockchain wallet. Blockchain wallet is a hot wallet which is provided by Blockchain. With this, we are able to store not all kind of coins but uses the blockchain platform in their works. Crypto currencies like IOTA uses tangle and so cannot be stored or held in the blockchain wallet. I still prefer to hold on coins in there because it is very easy to use and fast as well, I mean it does not require so much skills in order to be able to trade or hold your coins. Also, transaction fees are much lower as compared to other hot wallets. One this I like about this is that, you are given the chance to swap between cryptos with ease (you can swap from btc to ethereum).
Question 2
With screenshots, show how to perform spot trading on any pair of your choice.
First of all it we got to know what spot trading is before showing how to perform spot trading on any pair of my choice. This is the most common and popular investment anyone can make. This has to do with buying and holding any type of crypto until its value increases or maybe exchanging it to other cryptos you think will raise in value in the near future. For the sake of this article, I am going to be using the steemit platform to perform this task for better understanding. Let’s get into it…
Step 1; Go into your steemit wallet
Step 2; Login into your wallet using the active key.
Step 3; click on the arrow pointing down in the “STEEM DOLLARS” row.
Step 4; Click on market in the drop down menu.
Step 5; you will be taken to the trading page where you can either exchange your steem dollar to steem currency or the vice versa. In this case, we are changing the steem dollars to steem in other words, we are buying steem. So in the ‘buy steem sector’ input the amount of SBD ($100) you want to exchange into steem. And then click on ‘buy steem’ button.
Step 6; lastly you have to confirm your offer.
Question 3
Holding or trading, which do you prefer and why?
I prefer holding coins to trading them. In order to be able to hold crypto coins, we have to make sure we store them in a hardware wallet making it easy for hackers to reach. Holding of coins has a wide range of benefits which are the reasons why I decided to choose holding over trading. Some of these include;
It avoids the payments of fees at all times, because the coins are being kept for the future and so they aren’t used in trading hence prevents one from paying transaction fees.
Going by the holding technique, you don’t have to stress about buying and selling of crypto. This will also help save time by preventing you from looking at the price charts at all times. We can end up making bad decisions if the price does not hit our required level. This will lead to a loss.
Also, prices of crypto currencies are intended to rise when more investors make their minds to also go by the holding strategy. Profit making is somewhat guaranteed with holding. That’s what I think.
Above are why I think holding will be much better than trading.
Conclusion
I will conclude by saying either holding or trading entirely depends on the investor and the kind of goals he want to meet. And like I said earlier I will like to get more coins and I will still prefer to keep then till their prices rise to a level I think is convenient for me to trade.
Thank you @alphafx
Thanks for participating