Greetings everyone, I hope you will be fine and good and enjoying good health as well as the beauty of nature. As we know the steemit crypto academy is running with great potential. As the professors appointed by the steemit team are providing us lectures and students are learning about crypto and on the other side they are also getting rewards from the generous steemit team.
Today I am also here and attending the lectures as a student as recently I have attended the lecture of the professor @alphafx about the Trading and Holding - Two Sides of a Coin. The lecture is fully comprehensive and full of information about trading and holding as well as about the wallets and their types. So if you want to learn and earn then do not waste your time join steemit crypto academy.
As the homework task is about holding and trading so I want to define these two terms used in the cryptocurrency Holding and Trading.
Holding: As from the term it is clear that it is about to hold something. As it is the cryptocurrency term that is used to hold cryptocurrency in the wallets. Investors invest in the cryptocurrency and buy their favorite cryptocurrency to make a profit. So they have to hold it is known as Holding of Cryptocurrency. There is also an alternate term that is used for the holding, which is "HODL".
Trading: It is just like the simple trading which occurs in our daily life. It is simple in the cryptocurrency that when we buy any cryptocurrency it is known as trading because it is done by trade and same as when we sell our crypto assets it is also a kind of trading.
Do you hold any coins? Talk about the wallet type you prefer/would prefer holding in.
As of today, everyone is talking about crypto. The noise of crypto is in each street and house. Everyone wants to stake crypto assets to get profit. They invest in the coins or do some work to get crypto coins then they hold them to get something more beneficial. In this way, they get more profit by holding their tokens.
Similarly, I am also a holder as currently, I am holding different coins such :
Steem Backed Dollar (SBD)
Steem: As I am a blogger and working here in the steemit and getting a reward in the form of the Steem. I am holding them and waiting for the rise in the price. I have also sent some steems to @coin-doubler to enhance them.
Steem Backed Dollar (SBD): As a worker of steemit I am also getting a reward in the form of the Steem Backed Dollars (SBD). I am holding them for a long time to make more profit than the current price.
Tron (TRX): I am also holding trx except to sell them. Because I think that trx tokens may give more value in the future as it is rising day by day and its volume is very huge because of many investors.
SXPUP: Similarly I have to hold SXPUP crypto coins. Basically, I bought them at the price of about $2 and I have held them from that time of purchase and currently, their price is almost $2.36. But I am still holding them and waiting for a big wave.
SXPDOWN: This coin is opposite to that of SXPUP and its price falls due to the increase in the price of Bitcoin (BTC) and when BTC falls down its price raises and gives profit. I have also held these coins to make a profit and waiting for the crash in the market.
USDT: It is a stable crypto coin and I am also holding it. Mostly I use it to buy other crypto-assets according to the market trend.
Now the question arises that what type of wallet we should use to hold our crypto assets. As currently there are many wallets are going on. Each has its own benefits.
Some of the common types of the wallet are given below:
Cold Wallet: As from the name it is already clear that these are the cold wallets, which means that these are not connected to the internet and remain offline. As these are offline wallets so there is no single chance of hack of your crypto asset stored in them. So these wallets are safe to hold crypto assets. It includes paper wallets, hardware wallets, and Offline Software Wallets.
Hot Wallet: These are really hot wallets because they are connected to the internet all the time and you can access them easily with your internet connection. These are the online wallets. These are less safe than cold wallets and there are chances of hacking your crypto assets. It includes these wallets Web Wallets, Mobile Wallets, Desktop Wallets.
My Preferences about Wallet.
As I am a small investor and dynamic investor and I have to do spot trading and buy and sell the assets after that target reached. So I like to use Hot Wallets because they are easy to use and they are connected to the internet and I can simply use them with their mobile application or desktop version. Just like the
Binance Exchange Wallet.
It is true that I use the Binance Exchange Wallets to hold my crypto assets as it is a hot wallet and I can use it anytime and anywhere just with the internet facility and can sell and buy assets. Moreover, it makes it easy to sell the HODL crypto asset after the rise in the price. So I would like to hold my crypto assets in Binance exchange wallet.
With screenshots show how to perform spot trading on any pair of your choice.
Spot trading is the most common and important type of trading in which we buy and sell crypto assets with the current price of that crypto assets immediately. This is a very fast trading strategy and holders do spot trading to hold crypto assets by purchasing them using spot trading.
As I am also a holder so I also use the strategy of spot trading. It is very simple and easy to do. As I am using Binance Exchange Wallet so let's see how spot trading occurs in the Binance Exchange Wallet.
First of all, you have an account in the balance then you can do spot trading in the Binance exchange wallet.
As I already have an account so I would Sign In and then I will go to the Binance Exchange Wallet. It will show my all balance of all the crypto Assets. In the below screenshot you can see all the spot balances as I have highlighted with the blue color box.
Now I have to do spot trading so I select TRX/USDT pair to do spot trading as you can see in the below screenshot.
Let me show you spot trading with another example of trading. Now as we know that BTC is going up after the down market so I want to buy TRXDOWN and I will hold them and I will wait for the rise in the price of them because when BTC will go down it will go up.
Now I am going to do spot trading of RXDOWN/USDT so I have placed the order and now I have bought
I saw the change in the price so I changed the order and placed a new order and then I received 5533 TRXDOWN coins other than 5466. And here you can see it in my wallet.
I have shown you spot trading by using two pairs one TRX/USDT and the other is TRXDOWN/USDT. So in this way, one can easily perform spot trading.
Holding or trading, which do you prefer and why?
As I have already explained these two terms Trading, and Holding so the overview of these two terms is again given below to understand it easily.
- Holding: As from the term it is clear that it is about to hold something. As it is the cryptocurrency term that is used to hold cryptocurrency in the wallets. Investors invest in the cryptocurrency and buy their favorite
cryptocurrency to make a profit. So they have to hold it is known as Holding of Cryptocurrency. There is also an alternate term that is used for the holding, which is "HODL".
In the holding, there is no frustration of price fluctuation which fluctuates every day. You just have to wait and you can place your order in the spot trading that when that specific asset will go there then your order will be filled automatically.
In the holding, the number of your assets does not lose it remains the same but it is the price that fluctuates. But in holding you can make more profit than trading but you have to be patient as patience is a key to success.
In the holding of assets, your value of coins in the USD may fluctuate but if you wait and do not do foolish things in holding them then you can make big profits.
Besides this Holding has also its dar side, sometimes holding may be dangerous because there are some people who hold their assets for a short term and they consider that the price of that coin will go up according to their views. And in this way, they will make a huge profit quickly and they will use that profit to fulfill their needs. But if it does not happen then in case of any emergency they have to sell their crypto assets and in this way, they have to accept loose.
So if you want to invest and hold then you have to wait to get huge profits.
- Trading: It is just like the simple trading which occurs in our daily life. It is simple in the cryptocurrency that when we buy any cryptocurrency it is known as trading because it is done by trade and same as when we sell our crypto assets it is also a kind of trading.
Today trading has become very popular but it is full of risk. It can make you a millionaire but also a beggar. It is a short-term investment full of risk. In trading, one can lose all of his assets and suddenly with an eye view. And similarly one can make a lot of profit in a moment but it depends upon luck and your management.
Trading is not for beginners because it requires a lot of experience and skills for price forecasting. If you a good price forecaster then you can easily make money by using your assets (investment) in the trading
If you are familiar with the support and resistance then you can predict something in the future and it can give you some profit.
But if you are not familiar with the support and resistance of the chart or with the candlesticks then you can lose your money. But it is luck that unknowingly you do a good step in the trading.
I have seen a lot of people who have failed in trading and have lost their investments because of their negligence and carelessness. They are those who do not know about the trading brokers and their signals. But there are also a number of people in the world who are making a lot of profit by the trading but with careful management and experience.
I would like to prefer holding and trading (Spot Trading) because it is a very frequent way to increase the worth of your investment.
For Example: I have an investment of 100USDT. Now I want to increase my investment. So select TRX to increase my investment. I will buy TRX with 50 USDT when it will fall down. Suppose TRX falls down to its lowest price of about $0.05 and I buy them with all my investment (50 USDT) and I get 1000 TRX.
Now I will hold them to make more profit and I have to wait for the rise in the price. Suppose after a few days the price rises and it touches the highest price of about 0.25. Now I suddenly sell the TRX and I receive 250 USDT. So I have made a lot of profit of 200 USDT just by holding my TRON (TRX) but it needs patience.
Now when the price of TRX will fall down again then I will again buy TRX and hold them and will make more profit.
I will not prefer trading because of the high risk. Suppose I have 50 USDT and I want to do trade with TRX. So when I trade means to say I buy TRX and the price goes down my all investment will go down and at last all the investment will have vanished. But in some cases, it may happen that you need to pay more than your investment due to a lot of fluctuation. This is the reason I do not prefer trading even I also do not use this type of trading.
But if you consider yourself an experienced and perfect person for the trading that you can understand support and resistance levels and do careful analysis then you should do a trade because it may give you more profit.
In conclusion, I will say that if you want to make a profit without any loss then you should hold crypto coins if you have any extra investment because it is a long-term investment. And you should use hot wallets because they are easy to use and we can easily access them with the login ID without any external devices.
Moreover, if you are a beginner and want to do trading then you should start from spot trading and should hold crypto coins. But if you are experienced then you should do trading except to holding crypto coins. Lastly, I will say that it depends upon your abilities that how can you manage and lead a thing.
All The Screenshots Are Taken From Binance