Some persons imagine that crypto wallets store cryptocurrency. This makes some sense since that's how the wallet in your pocket functions. Unluckily, it's not correct. Rather, cryptocurrency wallets simply save informations on cryptocurrency.

So today I will be answering the homework task given by professor @alphafx

Cryptocurrencies only exist on vast databases termed ledgers. The ledgers are a record of all the cryptocurrency trades that has ever been made.

WALLET TYPES

HARDWARE WALLETS:

They are detachable storage devices like USB sticks. They are very safe, but can be costly.

WEB WALLETS: They can be used on tons of diverse devices, but they are at danger of being attacked by hackers. Online wallets are identified as hot storage.

DESKTOP WALLETS: They are installed straight to your computer. They can only functon on the computer they're installed on. They are safer than the web wallets, but are not as safe as the hardware wallets or paper wallets.

PAPER WALLETS: They are sheets of paper with your keys written on them. They are quite safe, just don't spill water on them! Again, a different form of cold storage as your private key is stored offline.

It is strongly suggested that you should constantly use more than one type of wallet to save your cryptocurrency information. If any one fails, gets hacked or is missing, you will at least have a backup!

METAMASK WALLET MY PREFERRED WALLET

Metamask permits you to run Ethereum dApps (Applications used) right within the browser while not running the whole Ethereum Node. this can be to mention that you just haven't got to transfer and synchronize the complete blockchain to your device or pc, Instead, the pc connects to a different Ethereum Node referred to as infura and runs these sensible contracts that manner.

MetaMask is an HD wallet, thus you do not need to worry concerning storing copies of your public / personal keys. Instead, trust only on the 12-word phrase at the time of installation.

REASONS WHY METAMASK IS PREFERABLE

Below are features of metamask that distinguishes it from other wallets and why I picked it

It is developed with the web3.js library; this library guarantees you to be able to utilize the full power of Ethereum.

Totally free software, so you can check your code and get security updates and patches very swiftly.

Being able to save private keys locally making sure of full security of your cryptographic assets.

Gives room for the formation of portfolios through HD. This helps users back up their accounts through seeds.

Allows the use of more Ethereum accounts and networks by creating usage profiles.

It has a private mode that makes provision for a high level of security to your account data.

It makes it possible for you to keep any ERC-20 token in the same wallet. In fact, it permits you to save more ERC-20 tokens at the same time.

It has a high level of integration with sites such as Coinbase , Shapeshift or MyEherWallet to top up the MetaMask wallet.

It allows the use of remote or local Ethereum nodes , which allows a high level of security in both cases.

It offers our browser the possibility to interact with most of the DApps.

It has internal protections that block cases of phishing or other attack vectors that put your funds at risk.

HOW TO SPOT TRADE WITH THE METAMASK

Below are the step by step procedures on how you can buy Ethereum using the metamask wallet.

STEP 1
You must first download the metamask application or login through the browser of your choice.

STEP 2
Login or register an account

STEP 3
Select “Create New Vault" and create a solid pin.

STEP 4
You’ll now be shown your 12 seed phrases. Jot them down and save them anywhere safe. This is very crucial!

STEP 5
Acknowledge that you have written the seed phrases down

STEP 6
Choose the kind of transaction you want to carry out. (for this illustration we will be buying Ethereum)

STEP 7
Select purchase method

STEP 8
Select your preferred currency and input the amount you want to buy

STEP 9
It will show you an Ethereum wallet address – click on buy eth

STEP 10
You will be ask to verify your email (a verification code will be sent to your email)

STEP 11
Supply your personal informations

STEP 12
Fill in your address details.

STEP 12
To purchase Ether or tokens, select "Buy" and choose between Coinbase and Shapeshift to credit your account

HOLDING OR TRADING; WHICH DO I PREFER?

To answer the question, I would prefer holding to trading, you will understand why as we proceed.

HOLD

HOLD is a word normally used for cryptocurrency investors that refuse to sell their cryptocurrency irrespective of the price increasing or decreasing. It is most often used in the course of a bear market when investors refuse to trade their coins notwithstanding the price fall.

With a holding currency strategy, I can divide it into 3 main strategies as follows:

A. Hold on targeting and selling
For example, buy BTC $ 3000 and only sell when BTC $ 15000, this buys and stops selling only at the desired price.

B. Keep changing

This is the best and most valuable possession. The key to holding this is the currency number if you consider, for example, Hold BTC only makes BTC more, Hold LTC promotes increasing LTC numbers and selling at a time that feels right. For example, When BTC costs $3000, you buy 1 BTC. When the price reaches $4500 you will sell 1 BTC for $ 4500, then spend all $ 4500 to buy BTC for $ 4000.
This process repeats so that your BTC number continues to increase over time.

C. Hold for a long time

Long-term investments are mainly used to invest in long-term projects/currencies that you trust. You can buy and wait until the market is full, and also the market to make things clear.

So these are all the reasons above why I prefer holding much more than trading