STEEMIT CRYTO ACADEMY: SEASON 2 WEEK 3 - TRADING AND HOLDING BY @alphafx

INTRODUCTION

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Hello guys its another week in the steemitcryptoacademy assignment and today i will be talking on trading and holding lesson by @alphafx. I have read the lesson and its a great course. So i decide to attempt it to

WHAT TYPE OF WALLET DO I USE / DO YOU HOLD A COIN

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Now before i go on with the type of wallet i use let me just brief us on what a crypto wallet is and the types.

• A CRYPTOCURRENCY WALLET

Wallet is not a new word to everyone here i guess we all know the meaning. A crypto wallet is a wallet for keeping our crypto after buying. It can be kept for a long time or a short time. After buying a cryptocurrency it enter directly into your wallet till you need to sell it i will be kept save in the wallet.

There are two types of wallet. And they are the hot and cold wallet

HOT WALLET

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This is a digital wallet for online trades and exchange of crypto currency. It enable all cryptocurrency user to receive and sell their crypto. They have private keys and public keys for transactions and security purpose which make this type of wallet unable hacker to hack in . The main role of the hot wallet is to facilate change to the transaction record stored on the blockchain for any crypto currency. Example of this type of wallet are binance exchange, trustwallet, blockchain wallet etc.

COLD WALLET

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A cold wallet is another type of wallet that saves the users private keys and public keys offline. It work with a software compatible computer. All data in cold wallet are stored offline so it cant be access by other users it is a centralized blockchain. Examples are hardware wallet, paperwallet and offline software wallet (terzor wallet.)

SOURCE

Talking about the type of wallet i use, its a hot wallet. And i guess most of us uses the hot wallet. I use an exchange wallet. And i also hold crypto in my exchange wallet. I use the binance exchange wallet. I am holding the binance native crypto currency (BNB) at the moment. I have be holding it for about a month now. I bought the coin when it was around $400 now it is around $560 now. And am planning to keep it till the end of the year. So i put it in my savings wallet.

BNB IN SAVINGS

I Use the binance exchange wallet and it has all the 4 type of trading wallet which are

• spot wallet
• margin wallet
• p2p wallet and
• future wallet

From this listed wallet i use just the spot wallet and the peer-2-peer wallet when ever i want to withdraw or deposit i will have to tranfer from the spot wallet to the p2p wallet to enable withdrawal

HOW TO PERFORM SPOT TRADING

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Spot trading is the type of trade that enable you to trade any cryptocurrency at the current market price with the available fund in your spot wallet. In the binance spot wallet there are many crypto currency pairing with btc, bnb, usdt and many other high crypto or stable coin.

So how to trade on the spot trading to trade on the binance spot trade you first need a pair of currency e.g Steem/btc thats a pair so you search for the pair on binance

After searching for the pair you click the pair then i will direct you to the trade graph there you will see buy and sell depending on the transaction you want to make.

If you want to buy steem you will have to pay btc from your wallet the you enter the amount of steem you want to buy then you buy.

After buying steem

Or if you want to sell you switch from buy to sell then your steem will be converted to btc and you will see btc in your spot wallet

That the step to step process of trading on binance spot trade.

HOLDING OR TRADING WHICH IS MORE PREFERABLE TO ME

Trading is buying a crypto currency for a specific time and selling after a little or huge profit. It cam be within a day or about a week. While

Holding is buying cryptocurrency and keeping in for a very long time might me months or a year or even more. When holding you will have to be patient because the profit wont come at once it will come and you can loss it due to dips but. While holding you will definitely make profits at the end of trade it will definitely double the amount the invested if not more than double.

For me i prefer trading to holding. Because within the years you use holding a crypto one will definitely make more that what you get from holding. When one do active trades. Imagine getting $10-$15 from trading everyday from an investment of $100 after a year you will get roughly $3650 which you is not sure for holding a particular coin for a year.

CONCLUSION

Thats all on holding and trading. I hope you gain something from this assignment. And thanks for @alphafx for bringing up topics like this. Its a great lecture