Dex, Cex, Popular Exchanges and Trading Cryptos - Steemit Crypto Academy Season 5 - Homework Post for Task 7

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Hello everyone, meet again this time with me @kinghearts, long time no work on this cryptoacademy, today I will submit my task 7 today.

Explain in your own words what an Exchange is. Differences between a Wallet and an Exchange. Mention the advantages and disadvantages of DEX and CEX. Have you used an Exchange before? tell us about your experience.

Explain in your own words what an Exchange is.

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Of course we already know not about this exchange or exchange, where this exchange is a virtual space which makes it a place for users to be able to buy, and also of course to sell, or they themselves can exchange cryptocurrencies they like.

With the advancement of this era, it will certainly be able to increase the number of users and also create various other new cryptocurrency coins.

With this, the number of platforms for an exchange will certainly continue to increase over time. Regarding the operation itself, they can also be divided into two types, centralized and decentralized.

Centralized Exchanges (CEX) is a thing that can work under the mediation of a third party which can act as a custodian of existing crypto assets, we can see examples of today such as Binance, and Bittrex, and others.

The other one is Dex, where Decentralized Exchanges (DEX) is also a thing that works well on software and also for a blockchain technology itself, this has also allowed on its own operating system between equals, without also intervention by intermediaries , we can see examples such as Uniswap and Justswap.

Performing operations on Exchange is easy, registration is generally free, some require identity verification, while for others, anonymity can be maintained. With several variations in their format, most of them have the same way of operation, they have a purchase book and a sales book, where all transactions are recorded.

For a purchase operation, a purchase request is created indicating the amount and price of the cryptocurrency to be purchased. This also works for sell operations, but in this case, a sell order is placed with the amount and price of the cryptocurrency you wish to sell.

Differences between a Wallet and an Exchange.

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We certainly know the difference between a wallet and a coin exchange tool, where the two things must have a fundamental difference, let alone the meaning is different, especially for the difference, of course there is. Let's discuss the difference.

Difference between Wallet and Exchange

Wallet

1. An instrument that can be used as a storage and can also be used to manage a crypto movement
2. If you later lose your password, then you will lose all the assets in your wallet.
3. You can store your crypto very securely, without requiring an internet connection.

Exchange

1. On an exchange it is a digital platform on which various operations can be performed.
2. On an exchange when we no longer know our password or forget it, we can reset our password easily, and also will not lose our assets.
3. There will be no operation if there is no internet.

Mention the advantages and disadvantages of DEX and CEX.

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For this discussion I will discuss what little I know about the advantages and disadvantages of centralized exchanges (CEX) and decentralized exchanges (DEX).

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Advantages over centralized exchanges (CEX)

• Users can have more complete control of the assets they own.

• In personal privacy, it does not require the user to provide personal details at the time of registration.

• At this CEX has provided or offered a very good security to its users.

Disadvantages of centralized exchanges (CEX)

• Due to its very anonymous nature as well as decentralization, some countries have decided to ban it.

• Cancellation of a transaction is more expensive than Dex

• The responsibility for a transaction lies with the third party.

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Advantages over decentralized exchanges (DEX).

• At the time of collection this commission is very low.
• Thanks to the fact that they can work under its premise rather than P2P (peer-to-peer),
• It has presented more than minimal risk of being hacked.

Disadvantages of decentralized exchanges (DEX).

• Very different from CEX, where CEX does not have an option to return for private and public keys, so when users lose their keys or lose their passwords, the user will lose all his assets permanently, and will not be able to restored but .

• For the sake of a low liquidity on the DEX system, the quantity on these DEX trades is significantly lower than on CEX trades.

• This cryptocurrency is the only currency in which it can be easily traded on the DEX, because a deposit and a fiat currency withdrawal system will not be accessible.

Have you used an Exchange before? tell us about your experience

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Yes it's true I have been using a platform on this type of exchange for a long time, this one is the type of exchange that has made it my favorite.

Where I always use this application, the application is Binance, indeed if we know for beginners it is very complicated, but if we use it often and find out, later we will also understand it easily.

Binance is very useful which allows me to be able to store a crypto asset that I have and also be able to exchange it for other coins.

Conclusion

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"If we want there will definitely be a way to gain knowledge even if it's a little, but it will be useful in the future. Then don't ever be lazy to learn and ask"

Thank you very much to professor @imagen where I learned a lot in this complex course and I have also learned a lot from things I didn't know made me explore new things.

CC: Profesor @dilchamo

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