WALLET AND EXCHANGES

WALLET

Whenever we hear wallet, the first thing that comes to our mind are leather or cotton materials that has space to keep materials, money and valuables. This is no lie but when we hear of wallets in cryptocurrency it is almost the same but with a difference a wallet in cryptosphere is a digital compartment where we can keep our crypto without fear of misplacing or loosing our assets.

The difference between a conventional wallet and a crypto wallet is that one is physical and the other is digital. These wallets are software or application wallets that can either be regarded as a cold wallet or a hot wallet. A cold wallet on the sense that it doesn't make use of the internet and a hot wallet is one which makes use of the internet to keep the data updated.

EXCHANGES

Exchanges are like the bureau de change that exchange one currency to another for customers. There are also bureau de change in the cryptosphere who allows for the trading and exchange of crypto on their platform, this platform are regarded as exchange platform. This platform are also digital applications.

They are regarded as global market that has all or almost all coin which users can exchange within themselves. Exchanges also possess a wallet that enables users to be able to hold their coin that is gotten as profit or after an exchange.

SIMILARITIES

There are quite similarities between wallets and exchanges.

(1). A wallet is used in keeping coin so also coin can be kept on exchanges as well.

(2). An exchange can be used to trade coin, some wallets allows for this but the primary purpose is always for storage.

DIFFERENCES

(1). A wallet is quite easy to set up while an exchange platform needs verification with I'd cards or passport to set up which most times doesn't make it quote easy for user to verify.

(2). An exchange platform is open to hacking due to its internet based usage but a wallet is less prone to hacking.

(3). In terms of fees exchanges exchanges charges more fee than a wallet, the only time it is required to pay a fee in a wallet is when sending a coin from one wallet to another which is usually not more than a cent.

(4). Without the verification of account there are limits to the amount one can deposit and withdraw at a time in exchanges unlike a wallet which doesn't limit it's user.

Is it possible to have more than one exchange platform?

You might be wondering if it's possible to have more than one exchange platform or is it neccessary to have more than one exchange platform since they have the same function. It is very much possible and neccessary because

1. Fees: the fees of each exchange platform differs from one another, you might find one exchange less cheaper than the other.

2. Volume: this is the amount of liquidity provided on a pair in the platform there are some platform with low volumes which can't allow alot of users to use the platform at the same time so this can also be another reason for using other platforms.

3. Coin type: your favourite platform might not have the coin you wish to trade at a particular time and might not even list the coin at all, so if other platforms has listed it you can always fall back on those platforms.

4. Government: there are some Government policy that has stopped some platform from operating in some countries, if this is the case one might need to quickly move his or her assets to another exchange platform which is why having more than 1 is a nice idea.

5. Promotions and offers: There are certain exchanges that does wonderful promotions and offers, if you don't want to miss out you might want to create an account with them so as to get those offers as well.

6. Rules and regulations: there are some rules and regulations that sometimes doesn't sit well with the user on a particular platform, so the user opts for another platform.

From the screenshot above we can see there are various exchanges ranked according to their volume, and market capitalization.

I have up to 4 exchange accounts as well but my favorite among all is binance. Binance has a large volume compared to other exchanges and also allows the use of P2P transaction which is quite amazing with lot of other features.

Which is better between a wallet and an exchange?

You might be considering why have a wallet and an exchange when you can have either of the both. Each of them has its own function as a wallet is mainly used for holding and guarantees maximum security over the holdings and prevent hackers from hacking and stealing the coins.

An exchange is mainly a platform for trading where users exchange crypto from either crypto to crypto or crypto to Fiat depending on what the trader wants. An exchange also allow for price prediction of an asset in which a trader makes profit if the prediction is done right or not. Exchanges also lend traders money or leverage them with assets to trade with.

We can now see that both function differently so no one is better than the other.
Note: exchange wallets are exposed to hacking so it is always advisable to use a normal wallet to store your CRYPTOCURRENCY.

HOW TO SETUP A WALLET

Setting up a wallet is quite easy, one jsut need to decide which wallet he or she wants to use, download it and set it up. There are various types of wallet, if you want to hold coin of different blockchain it is important to download an universal wallet like trust wallet.

Step 1

Download the trust wallet from your playstore of appstore

Step 2

Launch the app, then click on create new wallet and follow the short steps.

STEP 3

Click the check box and press continue, the next stage will show a seed phrase which you have to keep like your life savings. This phrase is what enables you to be able to access your wallet if your phone gets lost or you change your phone.

####Step 4

After pressing continue the seed phrase will be shown to you write it down and click next the next stage will tell you to input the seed phrase accordingly, you can then input it and press continue. If it's correct it will take you to the next step.

Step 5

You have successfully created a wallet. This enables you to start storing your coin in the wallet. You can also set up biometric security, passcode and a two step authentication for all your transactions.

HOW TO CREATE AN EXCHANGE

Exchanges have both web version and all version for their platforms. You can always use either of the two for your operation in this tutorial we will use the wen version for the registration, download the app then login to see the other features. I will be using the Okex exchange

Step 1

Search for okex on your phone browser and load the site, click on the sign up on the home page and input the details that is required of you. You can use your email, Google account of telegram to create an account with okex. After inputting the details click on sign up.

Step 2

A code will be sent to your mail if you registered with your mail or to your phone number if you regsisstered with your mobile number, you then input the code and click on continue, if the code is correct you have successfully created an account with okex.

Step 3.

After that you can then download the app if you wish, i downloaded the app and input my details to log in. Then I was taken to the homepage. The app will ask if you want to be on the pro mode or lite mode. The lite mode is for those who arenew to crypto, it's a less complex interface.

Step 4

I selected the pro mode and this is the interface with all options, if you want to change to lite mode just click the pro above and change to lite mode. Before trading ensure to verify, activate 2 FA and add your passcode so as to make your crypto trading easier.

Without verification your withdraw limit will be very low so it is always advisable to do all necccesary verification by uploading documents.

@allbert