Hello Steemit:

How are you all, hope you all are doing well. After reading professor @allbert article about A world of Wallets and Exchanges I understand the difference between crypto wallets and exchanges and how they work. This class taught me many important pros and cons about wallet and exchanges and it will help me in the future.

So, let's start with the answering of a given question,

1- Explain differences between wallets and exchanges as well as mention which operations should be performed in an Exchange and which operations should be performed in a wallet (in terms of fees).

Wallets:

Wallets are the applications on which we can store our crypto tokens. Wallets are designed for the security of our tokens. All types of your assets/token information are stored there and it is the safest place to hold your tokens. Wallets are also used to send and receive tokens from exchanges or any other crypto wallet.

Exchanges:

These are the platform which allows us to access the crypto market and exchange our tokens from the crypto exchange market globally. Exchanges are the most important applications in the crypto world because through this we can exchange our fiat or crypto currency into cryptocurrencies. There are many exchanges (Binance, Poloniex, MetaMask. pancakes), etc from which you can easily buy and sell any crypto tokens.

Differences Between Exchanges and Wallets:

Exchanges	Wallets
Exchanges are used to exchange fiat or cryptocurrencies into cryptocurrencies	Wallets are used to stored crypto tokens.
Exchanges are not secured.	Wallets are more secure than exchanges.
Exchanges are centralized and decentralized	Wallets are decentralized.
In exchanges, we can only use those coins which are listed on that exchange.	We can easily add different blockchain networks to our wallets.
Transferring speed is slow as compared to wallets.	Transfering speed is fast as compared to exchanges.

Operations perform in Exchanges and Wallets:

As we know, wallets are made up for Holding and storing crypto assets but some wallets are also have a swap function but the swapping fees are very high as compared to exchanges, if you are swapping your tokens in any exchange then the swapping fee is comparatively low as compared to in wallets.

The exchanges are made up for trading, and the fees charged by exchanges are high because many exchanges are centralized and they have to pay to host, other blockchain services so they charged commissions in each transaction. That's why exchanges are more costly.

In the same way, for withdrawals, exchanges charge some commission and on the other hand, wallets are decentralized so they don't charge any commissions.

2- In your own words, Why You think people should have more than one exchange account?. Do you have an exchange account? and Why that specifically?

There are many exchanges in the crypto world that have many different features and coins listed in them. No exchange has all the coins listed on it. That's the main reason, people have more than one exchange account.

I started my trading journey from Binance exchange but when I want some newly launched coins so I came to know that newly launched coins are not listed on Binance, so then I used pancakeswap for buying and selling new coins.

It is not a good practice to have all your assets on one exchange because as we know exchanges are not secured, many exchanges were hacked in past. So, the good practice is to store your assets in wallets.

Do you have an exchange account? and Why that specifically?

Yes, I have a Binance exchange account. I started my crypto journey from Binance exchange. Binance exchange is the cheapest exchange. I am not a professional trader and my investment is low so this exchange is good for me.

3- What are better? Wallets or exchanges.?

The answer to this question varies from person to person. It depends on people's needs. If people want to hold their assets then a wallet is the better option because wallets are the secured application to store and hold your crypto assets.

But if you want to do trade then exchanges are a better option just like Binance exchange. But trading needs large investment, that's why many small investors and newbies prefer holding and use wallets to hold their assets.

I am using a Trust wallet for holding my coins. I invested some money in penny cryptocurrencies and hold them for 1 to 2 years.

It is difficult to say what is good and what is bad. I don't think so that one is bad, both exchanges and wallets are good in their own way and helps crypto traders and holders by providing easy platform.

4- Create an account in a wallet and an exchange of your choice and show screenshots of the process.

Trust Wallet:

First of all, go to google play store and search Trust Wallet.
and then download the Trust Wallet application.
Then launch the application. Click on OPEN.

After that Click on CREATE A NEW WALLET.

Then accept their privacy policy and terms of services. Click on CONTINUE.

Then 12-phrase seed key is given by the trust wallet to you. Secure that key in a safe place and then COPY the seed key. and then click on CONTINUE.

After that Verify your seed key and then click on CONTINUE.

Then back up your wallet and click on CONTINUE after tick the backup and recovery box.

Then your wallet was successfully created. Then Click on DONE.

Poloniex Exchange:

First of all, go to their official website,
Poloniex website.
Click on SIGN UP.

After that enter your email and set your password. Then tick on their terms and condition policy and then click on SIGN UP

After that this interface will appear to you that ask you to verify your email account.

Then go to your email and click on VERIFY MY EMAIL.

Then enter your email and password and then click on LOG IN.

In this way, your account will be created on the Poloniex exchange.

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Conclusion:

The Crypto world is nothing without wallets and exchanges. They both are very important in cryptocurrencies. They both are the backbone of cryptocurrency. For the better use of these two, you must have good knowledge about both of them. Research and study about exchanges and wallets are very important if you want to make a good profit in trading and holding. If you have good knowledge about different wallets and exchanges then you will know how many fees are charging by them. In these ways, they both are important and have pros and cons in their own ways.

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This post is plagiarism-free. Hope I answered all the questions correctly. And pictures I upload in this homework are mine which are screenshots taken by me. Thank you for reading.

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Special Thanks to,

@allbert
@steemcurator01
@steemcurator02