Hello lovely angels, i know we are all having a lovely day. Hope you all are having great fun this weekend. I remain grateful to all who participated in the steemkids crypto academy last week. You are welcome to another beautiful week in steemkids crypto academy.

This week we will be discussing about wallets and Exchanges. We will also be examining the differences between wallets and exchanges.

Wallets

A wallet can be defined as a device, computer program or physical medium which is used to store cryptocurrencies. It also allows its owners to retrieve their digital assets, keep all their assets in one place and be able conduct transactions with it.
When a wallet is created, public and private keys are generated which are only accessed and held by the owner of the wallet, unless he divulges such information to a third party. With the keys he is in full control of the wallet.

Exchanges

Exchanges are applications that allows us to have access to the cryptocurrency market. The exchanges are just like a market place where buying and selling of cryptocurrencies take place. The exchanges provides an interface or medium for individual crypto owners to engage in the market. We should also note that, it is not only cryptos that are traded, but also fiat currencies. That is why we can easily convert our steem coin to fiat, for our personal use.

Differences between Exchanges and Wallets

● In an Exchange, the user creates a password using his email address while in a wallet, a phrase consisting of 12 -24 words are given to the user. These words are arranged in a specific order and is used to restore the wallet by the user in case the device he is using before gets lost.

● In an Exchange, the user will provide an Identity card to identify himself while in a wallet, the user does not require identification. He is anonymous.

● A wallet owner have full control of the assets in the wallet unless he compromises the seed phrase while in an Exchange, the user does not have full control of the assets in the wallet.

● Transaction fees are higher in a wallet than in an exchange.

● Trading of crypto currencies can be done in exchanges but can not be carried out in wallets.

● Exchanges provides a medium where we convert our cryptos to fiat currency. This service is not provided by the wallet.

We should also note that there are some similarities between the two. Both can be used to store, hold and accumulate cryptocurrencies. Some of the wallets can also perform the function of swapping of coins, staking and even freezing of assets which one can earn interest from (please note that not all wallets can perform these functions). But we need to know that doing so in a wallet comes with a high fee cost.

Conclusion

We have learnt today about wallet and exchanges. We discussed that wallets are different from exchanges and have been able to mention there differences as well as certain functions that can be seen in both, depending on the type of Wallet anyway.
From what we have learnt to day, we can then know the best place to store and transact with our cryptocurrency assets.


Assignment

1. Discuss and Explain Exchanges in your own words. Give examples

2. List the differences between a Wallet and an Exchange.

3. List some similarities between an Exchange and wallet.(Give an example of a wallet that have such similarities)

Homework Rules

Must be a verified steemkid

Assignment should done using your steemkids verified account

Ensure there is no plagiarism.

The post must be in steemkids community.

Kindly tag me in your post

resteem and drop your link as a comment for the post.

use the following tags as the first four tags:

#steemkidscryptoacademy5 #steemexclusive #yourcountry(eg - #venezuela) #steemkids

The number of words should not be less than 200 words.

Entry will be closed at Saturday 16th October, at 11.59pm GMT.

Reward Pool

30 Liquid steem to be shared among the participants.

The bests posts stands the chance of being selected for quality posts of the day.

Looking forward to having a great time with you all in steemkids crypto academy