Crypto Academy Week 11 - Homework Post for [ alphafx] …Wallets, Spot trading and Holding.

in SteemitCryptoAcademy3 years ago
This is my homework task fo4 @alphafx which is about cryptowallets, spot trading and holding. Without any dodging, let me move straight away to the task.

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


I am holding BTT and WIN in my software (exchange) wallet. I would however prefer holding in hardware wallet. Let me talk briefly about these two types.

Software wallets also known as hot wallets, are web based wallets on our gadgetes like phone, computer erc. I use software wallet because of following facts :
  • These wallets are easy to set up.

  • They are easy ro access and use. They can be accessed anywhere and anytime where internet is available. You need not carry any other device other than smartphone to access.

  • They are free of cost unlike hardware wallets like Trezor etc. Trezor costs about 8 to 10k INR.

  • They accept wide range of tokens unlike hardware wallets that hold one to few tokens.

Let's look at darker aide too. These wallets have higher potential of being hacked as they are internet based. As we know that, while making transactions on hot wallets , private keys are needed. After signing, the transactions are recorded online , that gives a chance to attackers to become privy to private key and grab the funds. Not only hacking but they are also accessible for regulations and other technical glitches as well.

As i mentioned above that, i would prefer hardware wallet. Hardware wallets are not connected to internet. They are also known as offline or cold wallets. Hardware wallet can be exemplified by a USB device on which keys are stored. As they are not connected to internet, therefore they are immune to web based attacks. The most secure type of cold wallet to store cryptos is PAPER wallet. Here public and private keys are printed or written on a piece of paper which is stored offline , may be with your documents. Other examples are TREZOR and KeepKey etc.


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


For spot trading i am using BINANCE. Before demonstrating in step by step manner, how to spot trade , I'll briefly define spot trade .

Spot trading refers to a type of trade that takes place instantly in spot market at spot price. Spot price refers to the existing price in the market. Because of instant nature of trade, funds must be available beforehand in your account. Example, suppose i want to purchase BITCOIN worth of $1000 in spot market. To execute this trade, i must have 1000$ in my exchange account and I'll have to buy at the price that is already existing in the market for order to get filled on spot. If i try to manipulate the asking price as per my convienence, than I'll have to wait till price touches that level.

How to do Spot Trade?

. Next there are 2 levels of security verification. First one ia image based puzzle and than is OTP to number.
IMG_20210427_120601.jpg


IMG_20210427_120831.jpg


  • Now you are logged into your account.

IMG_20210427_121014.jpg

  • Since we have to do spot trading, as mentioned above, funds should be present beforehand. So first you need to deposit your funds. You can deposit either crypro or fiat. For that click on "Deposit" and following interface will be seen.
    IMG_20210427_121427.jpg

  • Select what you want to deposit. Let's say crypto. Select the cryptocoin. You can also search for the coin.
    IMG_20210427_121641.jpg

  • Let's say, we want to deposit Steem. Click on Steem and next you will get
    IMG_20210427_121936.jpg

  • Copy Address and Memo.

  • Next move to steemit wallet and click on Steem and from drop down menu, click transfer and than on next page, enter address, memo , amount and than confirm and complete transaction with the help of active key or owner key or master key.

IMG_20210427_122808.jpg


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  • Now you have funds too. Now you will have to place an order.

  • Click on top right corner of Binance. A menu will drop down. Click on wallet, first option under wallet is overview. Click on overview and you will see all the funds you have in the main page of BINANCE.

IMG_20210427_123907.jpg


IMG_20210427_124306.jpg


  • As we have deposited steem. Click on steem logo and you got to see crypto pairs available. Select pair you want to trade. Suppose STEEM/BTC and on next page, click on sell as you have to sell steem and buy BTC. Next select the amount or percentage of steem to be sold and click on sell steem. That's it.

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IMG_20210427_125711.jpg
,***

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IMG_20210427_130045.jpg


Holding or trading, which do you prefer and why?


I would say, i prefer both. I would like to hold some assets and trade with some.

IMG_20210427_131936.jpg
My Portfolio from wazirx exchange wallet

As for trading is concerned, i am frequently trading Steem/BTC but i am doing strategic selling, not panic selling. I at times hold asset for weeks and than sell when target price arises.

By holding, i mean long term holding like months to years. I have been holding BTT and WIN for more than six months. As i don't expect any huge benefit in trading these tokens as of now. I expect their price to rise in future and may be I'll sell than to gain huge profit.

The sane practice of holding or trading of cryptos is to keep portfolio diversified. Basic principle of portfolio management in cryptos that everyone should keep in mind is "never ever invest your all funds in one cryptocoin ". The logic is simple, that is volatility of the price . As we all know that crypto coins have no intrinsic price value, price is wholly and solely determined by the demand in the market ( keeping aside stablecoins ). Therefore it is a sane practice to invest your funds in 3 to 4 cryptos. It is because if the price of one asset goes down the others may be bullish, so as to compensate the loss due to bearish coins.

Thanks

Sort:  

Good work, but some of these sentences appear on your old steemit posts and one from @ngoenyi

The possibility of you juts knowing it in those words because you wrote/read these posts and not that you plagiarized exists, so I'll go ahead with remarks.

Scoring

QuestionScoreRemark
Question 11/2
Question 21.5/2
Question 32/4
Presentation1/2
TOTAL5.5well done, see you next time

Thanks for participating

 3 years ago 

I don't known which post of ngeonyi you are talking about as i have not gone through.

The possibility of you juts knowing it in those words

Yes may be like that. Anyways thanks.

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