INTRODUCTION

Greetings friends!

I am very happy to be part of this great lecture prepared by Professor @imagen. This lecture has really improved my knowledge on Exchanges, it's types, Centralized and Decentralized, popular Exchanges and trading Cryptos.

I so much love the lecture and I will be treating on the No. 3 questions of the homework task.

QUESTIONS

🔹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.

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Explain in your own words what an Exchange is.

Exchange in my own words or understanding, is a digital platform or system that allow users to exchange a digital asset or cryptocurrencies trading. In otherwords, this exchange can be possibly done with fiat money or by digital system.

Exchanges make use of credit card, bank transactions or transfers, and debit card. Furthermore, Exchange is the system of buying and selling of crypto and converting fiat money into crypto.

In other to sell or trade your Crypto, Exchange allows fast and easy access to your account and also to your balance. There are many network by which Exchange work and the networks are;
• Ethereum
• Bsc and
• Tron

Based on the demand and supply, Exchange is a systematic arrangement where cryptocurrencies are produced. The existence of Exchange platform was and still effective mostly in this our present times.

Differences between a Wallet and an Exchange.

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🔹The users are in full control of funds transaction anywhere anytime in wallets, and the private keys and password are posses by us (the users), therefore, we can decide where and when to make the cryptocurrency transfer. While in Exchange, the users don't have the full control or incharge of the funds.

🔹When we lose our password in crypto wallets, it simply means that the funds of such person is lost, and when this occurs someone else will not be able to help our. Why because, only you is in total incharge or control of your private keys and password. While in Exchange, when this happens ie, when a person lose his or her password it is possible to recover it back or again.

🔹Cryptocurrencies are transfered to the wallets for proper security because wallets are seeing or functioned as the backing up or for resource management. While there is an easy trading of Cryptocurrencies in Exchanges.

🔹Cryptocurrencies are well or properly protected in wallets. While in Exchanges cryptocurrencies are transfered, sent or forwarded to wallets for proper transactions.

🔹In a Crypto wallet, people have an access to tokens at every point in time. ie, any time someone need to access his or her tokens he or she get it done. While in Exchange, you have the access or power to convert your fiat money into Cryptocurrencies.

🔹Your digital or online asset or money are protected or safeguarded mainly in Crypto wallet. While in Exchange, the main reason is to transfer/move trading from a particular coin to another.

Mention the advantages and disadvantages of DEX and CEX.

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For Professor @imagen having made it clear to me and every other person what DEX and CEX is all about and aswell how each of them works. They are categorically different from each other. Therefore, there differences assures us that CEX and DEX as type of Exchanges have pros and cons ie advantages and disavantages just as other digital system.

Advantages of DEX

• There is low charge cost in trading with high tokens when trading inpair Decentralized Exchange.

• There is no verification system such as uploading of personal documents in Decentralized Exchange and it is allested by your personal information which you then start your trading.

• In Decentralized Exchange, all the users have the total control of their private keys and there's no middle man or third party involvement for the users trades within them selves. Here, the government has no power to tamper your account because it is not monitored by them (the government) but by the users themselves.

• In Decentralized Exchange, there is a systematic arrangement or high standards of Security, anonymity and privacy Which makes it trustworthy.

Disadvantages of DEX

• If you have low or poor knowledge of computers Decentralized Crypto Exchange will be very dificult for you to understand or carry-out.

• Here, there is no fiat exchange that is been practiced and all the users must exchange Cryptocurrencies for fiat or tokens become, not every products are been purchase using Cryptocurrency.

Advantages of CEX

• CEX really gives room for fast and easy transactions exchanges, because it derived it's support from central and private system or sector.

• Centralized Cryptocurrencies Exchanges (CEX) have a very good or high standards going with the high trading. And is very simple and easy to access trading options in Centralized Exchange.

• Another advantage of cecentralized exchanges is that they are simple in application than than of Decentralized Exchanges.

Disadvantages of CEX

• In centralized exchange, the third party, negotiators and regulators are in full control. So you don't have full control of your exchange wallet or your own tokens. In otherwords, it is not really trustworthy for it may attract loss of tokens or money.

• In centralized exchange, there is no good provision of security. ie, the system doesn't provide a concrete security that will give the users the strong mind to believe that their tokens or money is protected.

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

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Of a truth, I have use an exchange earlier but not really too long. The Exchange wallet was poloniex and poloniex is among the best or most protected and trusted Cryptocurrencies exchanges established in the United State of America (USA). It's factors verification include withdrawals and API.

I have really use an Exchange for steems transferring from Poloniex to my steemit wallet account in which poor or low charges was needed of me. It is also fast and easy during the transaction process.

CONCLUSION

The differences between Wallets and Exchanges is a very important and interesting section or topic that we all need to put our interest on.

Wallets are specially for backing up, security and managing of the cryptocurencies when been transformed to wallets. In otherwards, when your trade is been forwarded from one coin to another here Exchanges make it possible to trade easily.

My special regards goes to professor @imagen for this wonderful lecture on exchanges, types of exchanges, popular exchange and trading crypto.

Cc:

@nane15
@sapwood