STEEMIT CRYPTOACADEMY SEASON 2 WEEK 3:TRADING AND HOLDING,TWO SIDES OF A COIN BY @ALPHAFX
INTRODUCTION
Hi guys,welcome to my homework post in steemit crypto academy season 2 week 3 for professor @alphafx on trading and holding.After reading the lecture,I learnt a lot about crypto wallets I didn't know before.
After doing more research on the lecture ,I have come to do my homework.
Do you hold any coins? Talk about the wallet type you prefer/would prefer holding in.
Before I go on to answer this question,I'll first like to explain what a wallet is and what type of wallets we have.
WALLET AND ITS TYPES
Normally when we hear the word wallet,we often think of the leather pouches in which we keep our money.That isn't wrong if you're talking about a normal wallet.The wallet we're talking about in this case is a crypto wallet.A crypto wallet functions like a normal wallet but instead of holding your money ,it shows proof that you own a certain amount of cryptocurrency or cryptocurrencies.
There are basically two types of crypto wallets;
1. HOT WALLETS:
These type of wallets are internet based wallets.They can't be assessed without connecting to the internet.They often contain public keys (address) and private keys.Examples are binance exchange wallet,trust wallet etc.
binance and trust wallet
2. COLD WALLETS:
These type of wallets don't require connection to the internet unlike hot wallets.This means the keys are kept physically and are generated by Random Number Generators(RNG).It is best for storage of large balances if they are too be held for long.There are paper wallets ,hardware wallets and offline software wallets.These are examples of cold wallets;
Going back to the professors question,yes I do actually have a coin I'm holding.It is the Chiliz exchange coin - CHZ.
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I bought my CHZ early January this year at the rate of $0.02 for one.Now it has risen so well that it is now sold at $0.51 per coin.
I personally prefer using the hot wallet.Specifically the binance exchange wallet because I can easily access it on my mobile and my PC.The binance exchange wallet allows me to put some of my cryptocurrencies in savings where I earn rewards just for saving my cryptocurrencies.I also can keep my cryptos in my margin,p2p , future and spot wallets.These wallets depends mostly on the type of trade you want to do.
mini wallets in binance
HOW TO PERFORM SPOT TRADING
Spot trading is usually done in pairs.It requires trading against other cryptocurrencies.These cryptocurrencies are often BTC,BNB or stable coins like USDT.
spot trades against BTC,BNB and USDT
I'm going to show you a practical example of spot trading of USDT and HOT.
The first step in spot trading is to search for the pair of coins you want to trade.Since I'll be trading USDT with HOT, I'll search for the HOT/USDT pair.
Click on the pair and you'll be directed to a new page where you'll be required to buy or sell.Since I'll be buying,I'll click buy.
If you want to buy/sell a coin,you either buy/sell at a limit or at the current market price.I have identified where you can change the settings in the screenshot above.
If you set a limit for the trade,i.e pick a rate you want the trade to go on,it is common for the trade not to go on immediately.It would be kept in order until it reaches your set rate.
Currently, I'll be buying at the market price and I'll be buying 1000 hot for about 16.73 USDT.
The new coin would be transferred to my spot wallet as you can see below.
Due to charges ,I got about 990 HOT in my wallet.
That is how to do spot trading.
HOLDING OR TRADING, WHICH DO YOU PREFER AND WHY?
Based on experience, I have tried both holding and trading.I have been holding CHZ for over 3 months and I don't plan on touching it anytime soon.On the other hand,I have other coins I do active trading with.I don't keep some coins for up to a week .After I have made a quick profit from the coin, I'll sell it and move into another trade.This has been working for me since the first time I got into the crypto market late 2020.So personally,I prefer trading over holding coins for long periods.
I can use yesterday's case as an example,when I initially got into the trade,I invested about $68 and with active trading it was up to $73 this evening.
Even though my holding has been very profitable for me I'll still pick my trading.
CONCLUSION
Thank you all for reading my homework post on trading and holding ,I hope you learnt a little.I also want to thank the professor @alphafx for the great lecture.
CC: @alphafx
#holdingvstrading #alphafx-s2week3 #cryptoacademy #nigeria #steemitblog
Thanks for participating