Crypto Academy | Season 2 - Week 3 | Home Work Post for @alphafx | Trading and Holding - Two Sides of a Coin

Dear Steemians,

The Steemit Crypto Academy Season 2 lectures are literally valuable and giving practical knowledge. Our Crypto Professor @alphafx has given a great lecture that will actually help all the crypto investors and traders to make wise decisions regarding holding or trading crypto coins that will ultimately make them better profits.

Steemit Crypto Academy Professor @alphafx has explained in-depth about Two sides of a coin - Holding or Trading and I was able to understand the following things from this lecture;

• Different wallets types to hold cryptocurrencies
• Spot Trading and Futures Trading
• Leveraged Trading and its type

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Home Work Task
At the end of the lecture, students were assigned a homework task by Professor @alphafx asking 3 main questions.

1 - Do you hold any coins? Talk about the wallet type you prefer/would prefer holding in
2 - With screenshots, show how to perform spot trading on any pair of your choice.
3 - Holding or trading, which do you prefer and why?

I am submitting my task through this post by answering the above questions asked by our Professor.

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

I have learnt that holding too many coins won't be giving you more profits so I am just holding 5 coins at the moment in my Binance Exchange wallet. These include Tether (USDT), Steem, Cardano (ADA), Holo (HOT) and Tron (TRX) and the current value of my holdings is $7400+ and great potential of increase in value over time in this Bull Run. Let me describe briefly why I am holding these coins.

My Exchange Wallet Screenshot from Binance

Tether USDT
There are few reasons why I keep USDT in my portfolio. It provides me with an opportunity to buy different cryptocurrencies when the market gives opportunity and I tend to add to my current holdings. It also gives me the leverage of cashing out at times of emergencies. As the value of USDT is not subjected to crypto market fluctuation, it gives me a sense of security that my assets will not reduce greatly in case of a severe market crash.

Steem
We all know that steem is a great project and continuously improving with lots of advancement. At the same time, it is a great buy if we see the steem chart technically. Price has bottomed out and bounced from there and it is more likely to keep moving up in coming months with more and more users joining steemit. I am planning to add more steem to my portfolio.

Cardano (ADA)
I have recently added ADA to my portfolio on this current market dip. The project is a solid one and good market cap which is increasing with time. The price is still very affordable and I am holding this one for a potential 10X profits.

Tron (TRX)
This should be in everyone's portfolio because of the great potential of this project. The recent integration of Tron with Steem has made my mind to add TRX to my portfolio because it is still very cheap. At the same time, I am getting TRX as rewards for my steemit activities, so it is gradually increasing on auto.

Holo (HOT)
I have bought 1000 Holo coins initially because of the good hype about this coin on Twitter. It has exploded in last few days that has caught the attention of many big investors. So it is more like that it will be 10X or even 50X in the coming months. I just added 3000 more to my portfolio in the last week's dip of market.

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My Preference about Wallets for Holding Cryptos

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Exchange Wallets - I prefer to hold most of the altcoins in an exchange wallet because it is convenient for me to make trades on them as a Technical analysis trader.

• Exchange wallets are easy-to-use and we don't need so much technical knowledge to use them.
• We can easily recover our account even if we lost passwords. There is no lengthy process to make password recoveries.
• There are so many coins being available to exchange wallets that we can take advantage by trading them.

My Exchange Wallet Screenshot from Binance

Hardware Wallets - When it comes to my opinion about holding crypto coins, I have two preferences that are Hardware wallets and Exchange wallets.

• I would hold major crypto like bitcoin, ethereum and litecoin in a hardware wallet for long term. I actually have Ledger Nano S and I use it for holding bitcoin mostly.
• Hardware wallets provide better security of your holdings and you can keep it safe in your home and it won't be subjected to any actions by hackers or government agencies.
• The bad thing about hardware wallets is that you have to keep the password phrase at safe place and if you lost them, it is a very long and tough process to get it recover.

My Ledger Nano S Harware Wallet

2 - With screenshots, show how to perform spot trading on any pair of your choice.

In 2nd question of the task, we were asked to perform spot trading on any asset of our choice. I have decided to trade Cardano (ADA) using Binance Exchange and let me walk through step by step process on how to do spot trading.

Step 01

• Go to www.binance.com and Login to your account.
• Go to Trade Tab and select Classic as shown in below image
  

Step 02

• Go to USDT Markets tab and Select ADA/USDT Spot Market as shown in below image.

Step 03

• Click on Buy and choose your trade parameters like price and quantity to buy and order type (Market or Limit)
• I have done both types of orders by buying limit and buying market execution.
• I have a buy limit 10 ADA at price 1.2225 while I bought 8.22 ADA with 10USDT at market execution.
• Total 18.22 ADA were bought with both orders that cost me 22.15 USDT.

Step 04

• Click on Sell and choose your trade parameters like price and quantity to buy and order type
• I waited for the market to move in my favour and sold all 18.22 ADA at market execution price 1.4044.
• After selling those 18.22 ADA , I got 25.58 USDT in total.

All Images are Screenshots from Binance and Edited by Me

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ADA Spot Trade Result

• The ADA trade that I showed you has given me 15.5% Profits which is not bad at all while doing a Steemit Crypto Academy Homework Task.

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

The last question asked by our Professor is about the choice between holding or trading with reasons. This is a thing that will have different answers from different people.I have few friends who like to HODL for long term and I also have friends who like to make intraday trades to chip in profits from daily market fluctuations.

My Preference
As far as my preference is concerned, I would say that I am doing both of the things buy holding a coin and trading it at the same time. If I have to choose only 1 option then I am more of a trader than holder. There are different reasons why I choose to trade and hold a coin at the same time.

• I am good at technical analysis and take advantage of the short-term market fluctuations to make quick profits.

• I tend to buy at the bottom or when the market dips and selling when the market is moving to a higher liquidity zone or pumping. For example, I have bought ADA at 1.225 and sold at 1.4044 in the above trade explanation.

• I am holding steem for the long term as I described above but I am also trading steem. For example, I have bought 500 Steem when it dropped to 0.62 in last week and you can see that there is almost 50% profit on that trade now with steem price hovering around 0.90

• Trading can also be done while holding a coin if you know the technical analysis like I am doing. It will increase your coins over time and you will get benefit in long term as well by holding them.

• Trading and Holding is a win-win situation for me because my assets are increasing in both ways.

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Final Words

• I am holding 5 cryptocurrencies in my binance exchange wallet
• I prefer Exchange wallet to hold my altcoins for trading purpose while I would prefer to hold major cryptos like Bitcoin, Ethereum and Litecoin in my Ledger Nano S.
• I have picked ADA/USDT to show an example of Spot trading by making both buy and sell trades that resulted in profits.
• I prefer trading along with holding a coin because that increases my chances of growing my assets and it is a win-win situation for me.
• Cheer to @alphafx for making this practical task that yielded 15.5%real profits for me.

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I would like to pay my thanks to our Crypto Professor @alphafx for this practical lecture and looking to learn more in the coming weeks.

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