Crypto Academy Week 11 - Homework Post for @alphafx || Trading and Holding || by @tmighty.

tmighty (65)mutedin SteemitCryptoAcademy • 3 years ago

Introduction

Good day prof @alphafx and my fellow students here on the @SteemitCryptoAcademy community. I am filled with joy as a result of the knowledge I just acquired from this class and I want to thank @alphafx for the class. I am honoured to be your student.

With my trading experience and knowledge gained from your teaching on this week's course, I am here to submit my homework post. I hope this makes sense and impact my fellow students who will come across it.

Question 1:

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

Though I prefer trading coins and making everyday profit, I hold coins. In fact, for about a month now, I have been holding REEF FINANCE. I learnt there is going to be a release of the coin by May. If I am not mistaken, when there is a release of a coin, the value goes up. This has made me hold the the Reef Finance I brought.

The date and time i bought REEF Finance

REEF FINANCE STILL IN HOLD IN MY WALLET

Even when I saw it's price went up several times, I have refused to sell. When this same coin went down to $0.006, I bought and held it until it got up to $0.022
before I sold it out.

For the wallet type, I prefer the wallet on exchanges for holding.

Exchange Wallet.

This is a type of wallet found on exchanges that provides multiple wallets for users to store their assets. Wallets on exchanges have multiple wallets address for every of the coins it accommodates. The security system provided by exchanges helps users not to worry about their assets. Though the private keys for each wallet is with the exchange itself, the owners of each wallet have a part in it's security as the password and authentication processes used in withdrawal stays with the owners of each account. Therefore, the security of exchange wallets can not be easily compromised.

Wallets provided in exchanges do not only offer one a means of saving one's asset but it also offers a means to trade your asset with different pair of crypto combination when the price is high without having to first of all send it to an exchange if it was in an external wallet. It also offers opportunity to learn and advance one's knowledge in the world of cryptocurrencies. For instance, on Binance, you can learn about any cryptocurrency, you can attend a school, we have the binance academy for new members and even old members. Though not all Exchanges offer all the above benefits, the best, i.e the top ones like Binance, Huobi, Coinbase, etc offer them.

Question 2.

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

Before I go into the question, let me start by telling us what spot trading is.
Spot trading is simply buying and selling a commodity, or cryptocurrency using the availability market price. Or simply put, it is trading on a spot price, trading on the price at the moment.

Now back to the question.
When crypto assets are sent or deposited into an exchange wallet for example, USDT, the asset appears on the Spot trading zone, so when a user wants to perform a spot trade, there is no need to do any kind of transfer.
Also, the setting for the trading page of exchange like binance is by default on the spot trading page.

How to do Spot trade on Binance.

I am going to use a sell trade to show this.

From the homepage of the binance, click on trades

Select the pair from favourites, If you are new and no favourites yet, search for it. I selected TKO/USST trading pair.

Select buy or sell up in the trading page

Select limit (the default setting though) if want to insert a price and wait but if you want to buy at the current market price, select market.
If you selected limit, insert your price,. This can be done by deleting the price in the space and inputting another or by simply clicking on the prices display, according to the type of trade, buy or sell.
Click the percentage of coin you want to buy or sell. Where you don't want to use percentage, for buy insert the amount you want to use to buy at the box when total (USDT) is written just below the percentages, for sell, input the amount of the coin you want to sell in the box above the percentages.

Click buy/sell below as the case may be.
This way, the order has been registered, see screenshot below.

Question 3:

Trading or Holding, which do you prefer and why?.

For the fact that the movement of cryptocurrencies is highly unpredictable, and unreliable, I prefer trading.
As I have stated earlier, no one can consistently predict the movement of a coin because up till this moment, I do not know all the factors responsible for an upward movement in price, neither do I know all those responsible for downward movement in prices of coins.

Also, I earn a living on crypto. This gives me a drive to make money everyday because I always have needs to meet. Itsonly trading that can help me meet my every day needs. During times of emergency financial needs, I cam and easily meet my needs because I make profits almost every three to five days. Holding will only make me financially bankrupt some times, t
therefore I prefer trading.

Being that as it may, from the lessons learnt from these crypto courses, combining both trading and holding won't be a bad idea if one is trading different crypto pairs at the same time. I do trade different crypto pairs and taking action almost at the same time for every one of them has not been easy. So for the coins that have a high speculation to go up in weeks or months to come, I hold and when the price hits a new high and there is a possibility of it going down, I sell. So one can actually combine both methods and make better profit.

Conclusion.

Trading and Holding are different methods of doing cryptocurrency business. While trading involves buying and selling almost everyday in either spot, margin or future trading and making profit almost everyday, Holding involves keeping a crypto assset for weeks or months or even years while expecting the price to go very high. Both can be used simultaneously by an experienced person in cryptocurrency business.

It is not advisable for a person to stick to any of these methods but I will recommend trading to anyone because it offers a higher chance of profit and helps individuals monitor their assets in any system.

This is my homework. Thanks