CryptoAcademy homework for @alphafx - Trading and holding

Everyone in the crypto world faces the question of whether the wise thing is to trade with their holdings or if they should just hold it. This is a constant challenge and question. I remember seeing a tweet from a person who was sad to have sold Bitcoin at $8. He thought he was smart when he sold around $3 after buying at $1 (after all, he had 3x profit). Well, he would have been better off holding, that is for sure.

Here I will share my homework based on the lesson of @alphafx in the Steemit Crypto Academy!

What I do with my coins!

I have somewhere close to 10 coins that I hold on a regular basis and that I am following long-term. I have different preferences for the different coins. In an ideal world, I would store all my coins in a cold wallet, like Ledger, Trezor or SafePal. The problem is, however, that you will normally miss out on all sorts of staking rewards if you use a cold wallet, and that isn't so cool.

safepal hardware wallet.jpg
My SafePal hardware wallet.

SafePal, a quite new hardware wallet, supports way more coins than Trezor and Ledger, and it has great support for the Binance Smart Chain. With this, you can even trade directly on Binance, on Pancake Swap and Uniswap, directly from the hardware wallet.

But, my favorite tokens are Steem, Vechain, Ethereum, Bitcoin, StrongBlock, Oxen, and some others. To be honest, Steem is best kept on the Steem platform. Here I am using it on a daily basis for voting, and that is also the most rewarding way to use them.

Ethereum and Bitcoin are long-term coins, and thus, it would be smart to keep them in my hardware wallet. But, since there is no interest, I am holding them on platforms such as Nexo where I receive up to 8% interest on such coins. It might not be as safe as a hardware wallet, but it gives interest, and that is worth a lot!

Oxen has their own wallet and there you can also use the tokens for running a node. It is the most lucrative way to store those Oxen tokens (it is a privacy coin much like Monero, just with even more use-cases). StrongBlock is a platform strengthening blockchains through nodes. Here you can store your tokens and earn rewards through so-called mining, and it is by far the best way to take care of your coins (if you have any).

Vechain is an amazing project as well, and by holding VET tokens, you will automatically earn VTHO tokens (in the official Vechain wallet or on most exchanges). As a result, I keep my Vet tokens on different exchanges.

In other words, a hardware wallet would be the ideal solution, but due to the Defi boom, it is way more interesting and rewarding to use special wallets or lock them at exchanges. As a result, I don't keep much of my coins in hardware wallets, but in all sorts of wallets and exchanges instead.

How to do spot-trading?

My favorite exchanges are Bittrex, Kucoin, and Binance. They are all easy to use, and Kucoin and Binance also have lots of tools for staking and earning interest with your tokens, making them even more interesting than Bittrex. But, since Bittrex has the best set of Steem pairs (Steem/BTC, Steem/ETH, Steem/USDT) and also an SBD/BTC pair, I use Bittrex a lot for Steem activities.

Another project that I am interested in is Hedera Hashgraph (HBAR). I don't know if it will ever moon, but I have a bit of FOMO on this, so I want to show how to buy some HBAR tokens on Binance with the HBAR/BUSD pair.

trade classic.jpg

First I choose the "Trade" option in the menu, and later I choose "Classic." This is a very easy-to-use interface, with quite a lot of tools, but still not so many that it becomes confusing.

hbar busd.jpg

Here I have 60 BUSD (approximately) and I want to buy HBAR tokens for this price. I drag the percentage bar to 100%, meaning that I want to use my entire BUSD balance for this purpose. When I press buy, the order has been set. Here I am using the price set by default (which is the lowest ask price at the time I visit the trading pair). You can, of course, change the price at which you want to buy, but since I have a bit of FOMO, I just buy immediately at the lowest asking price currently available.

open orders.jpg

Here you can see my order in the list of open orders. It didn't go through at once, but normally it is only a matter of seconds or minutes if it doesn't go through at once.

trade history.jpg
The order went through after some minutes. Here you can see it in my trade history.

Holding or trading, which is the best?

It is hard to sit quietly and just hold tokens, so I always feel tempted to trade and especially swing trading is tempting. But, I remember swing trading LINK tokens back in the days. I had 100 tokens, turned it into 135, and then suddenly, it mooned (it was around $1 back then). It never returned to the level at which I traded, and today I am sad about that. I would have been way better off if I had just held my tokens.

If you believe in cryptocurrencies and projects long-term, I am almost sure that you are way better off just holding them (just like I mentioned in my introduction with the guy who sold Bitcoin at $3). That is why I believe it can be wise to have a plan before you enter the market. For example, buy tokens for $100 and set aside half the investment for the long-term (that you will leave alone and just let it grow), while you can use the rest for trading. It is all about having a plan and sticking to it.

But, once again, I believe the very, very best and safest solution is to hold, simply because we are only in the start of a revolution that will change the financial world. Selling everything now is just like selling Bitcoin at $3.

Thank you once again @alphafx for this lesson. I could have written so much more, but I feel like I have answered thoroughly the questions of the homework already. If there is anything you miss or want me to add in addition to what I have already written, please let me know!

Comments 1

Question Score Remark
Question 1 2/2
Question 2 2/2
Question 3 3/4
Presentation 1/2
TOTAL 8 well done, see you next time

Thanks for participating

30.04.2021 01:24