Crypto Academy Season 2 Week 3 Homework Post for (@alphafx) - Trading and Holding

This week, the professor examined the hodl and the issue of trade in the finest detail. I read the professor course article and now I am writing my homework.

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

Yes, there are coins that I keep / will keep for a long time.

(Image taken on the Huobi exchange)

I have very different strategies for cryptocurrencies. I try my strategies on different exchanges. For example, I hold cryptocurrencies such as HIT, FTI, NEW, NODE, TNB, TT, REEF, VSYS on the Huobi exchange. Their current value is $ 930. I've been holding these for a while, and I'm thinking of holding them for a very long time. Sometimes I do not break even if they increase 100% daily. Because the coins I chose have more potential to increase.

If you have noticed, the per unit value of cryptocurrencies other than Steem is very low. So these fall under the penny cryptocurrency category. Their prices are at the penny level. They have a lot of uplift potential. It can gain 50X, 100X to those who manage to hold it patiently. I do not intend to spoil these coins I have for a long time. It will be beneficial for me to keep it until the end of the bull period. The total value of my coins is now $ 930. It had risen to $ 1400 a few weeks ago. It wouldn't be surprising for me to find $ 30,000- $ 50,000 in bull season. It would be like a lottery hit me. Maybe I can buy a car with a nice house. I follow different strategies in other exchanges as well. My long-term (hodl) strategy on the Huobi exchange is enough to explain this question.

Exchange Wallet

I prefer an exchange wallet to store coins for a long time. But first I want to talk about something. Cold wallets are the most suitable wallets to store coins for a long time. I cannot prefer cold wallets because the costs of cold wallets are too high. If I was a whale, I would prefer a cold wallet. The money I spent for the cold wallet would be unimportant to me.

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Another reason why I don't prefer cold wallets is this. Cold wallets are not suitable for all cryptocurrencies. For example, Ledger Nano S, which is a hardware wallet, only supports the coins in the picture. According to Coinmarketcap data, there are more than 8000 coins. What should be done to store those coins? If I were a whale with 10 BTC, I would have to use a cold wallet, but it is not wise for small investors like me to use a cold wallet. The costs are high and cold wallets do not support all coins.

The exchange wallet is suitable for small investors like me. The reasons are as follows.

1. Secure: Exchanges do not give out private keys of the coins we own. However, reliable and popular exchanges are more adept at storing coins than users. It is not dangerous to provide long-term coins, especially on exchanges such as Binance and Huobi. These exchanges have proven themselves.

2. There is no need to pay commission for the transfer: Even if we keep the coins for a long time, we will sell them eventually. For example, let's say I bought ARK coins from the stock market to keep it for a long time. I have to pay a transfer fee to transfer the ARK cone from the exchange to the cold wallet. When I think of selling it, I have to transfer the ARK in the cold wallet to the exchange. Again, I have to pay a transfer fee.

3. No need for technical knowledge: No technical knowledge is needed to provide long-term coins in the stock market. Good technical knowledge is required to use cold wallets.

4. If you lose your password, your funds are still safe: If you lose your password to access the exchange, you can log back into the exchange. Of course, you have to go through some approval stages for this. In cold wallets, if you lose your password, you will also lose your funds.

(2)With screenshots, show how to perform Spot Trading on any pair of your choice.

To be able to trade on an exchange, you must deposit cryptocurrency or real money into your exchange account. This varies from stock market to stock exchange. For example, I deposit USDT or BTC on the Huobi exchange to buy crypto money on the Huobi exchange. Most of the time I trade with USDT.

I have 11 USDT in my Huobi account. I want to buy cryptocurrency with the USDT I have. The coin I will buy is CKB.

(Image taken on the Huobi exchange)

I first log into the Huobi stock exchange. I'm following the Balances> Exchange Account steps at the top right.

(Image taken on the Huobi exchange)

Then I type "CKB" in the search box. I go down a little bit and click where it says "Exchange". Since I have USDT in my account, I choose the CKB / USDT pair.

BUY

(Image taken on the Huobi exchange)

The section on the left in Huobi is the purchasing area. We need to determine the price of the crypto money we will buy. Then we decide how many pieces we will buy. Then click on the "Buy CKB" tab.

Our order to buy from the current exchange rate takes place immediately. If we have not ordered to buy at the current rate, we will have to wait a little longer.

(Image taken on the Huobi exchange)

When I look at the account statement, I can see that the purchase has been made.

SELL

Selling is the opposite of buying. If you are a person trading on Huobi, you will need to use the right side for the sales transaction.

(Image taken on the Huobi exchange)

We decide how much price we will sell the coin. After determining how many coins we will sell, we click on the "Sell CKB" tab. If we are going to sell the coin at the current price, our transaction will take place immediately. If we are not going to sell at the current price, we will have to wait a little longer.

(Image taken on the Huobi exchange)

When I look at the account statement, I can see that the sales transaction has taken place.

(3) Holding or trading, which do you prefer and why?

The answer to this question actually differs from person to person. Some traders say it's okay to trade. Some traders say it is right to keep the coin for a long time. Some traders say that both trading and holding the coin for a long time is right.

My preference is to keep the coin for a long time and to trade. Thus, I will be able to increase the number of coins and I will keep the coin for a long time.

For example, the coin I want to keep for a long time is Steem. I follow all developments related to Steem closely. I look at the Steem technical analysis, graph. I determine the points of support and resistance. I look carefully at the pattern formations.

Steem resistance level is $ 1.05 and Steem support level is $ 0.86. When the price of the Steem is $ 1.00, I sell Steem, when the price of the Steem is $ 0.87 I buy it.

Let's say I have 1000 Steem in my account. If I sell 1000 Steem at $ 1.00, I get $ 1000. I wait for a while when the Steem price drops to $ 0.87 I get $ 1000 worth of Steem. With $ 1000 I can buy 1149 Steem. As you can see I originally had 1000 Steem and now I have 1149 Steem.

With this method, we both keep the coin for a long time and increase the number of coins. Support and resistance levels are important in cryptocurrency charts. Cryptocurrencies usually rise to resistance levels and fall to support levels. We should sell the crypto money at the resistance level and buy it at the support levels. Sometimes support and resistance can break prices. That issue also needs to be careful. If the coin has reached resistance levels a few times, it will break the resistance level on the next try. Let's pay attention to this issue while making our moves.

In conclusion I want to say the following. By buying and selling the coin, we both increase the number and keep it for a long time.

Conclusion.

The professor touched on a useful topic in the course article. There are traders who hold coins for a long time. These are generally whales that we call big investors. If we are going to keep the coin for a long time, we need to have safe methods. In the homework, I showed how trades work. I addressed the question of whether to buy or sell from a different perspective.

Thanks to the professor for this useful course.

Cc:
@steemitblog
@alphafx