Crypto Academy Season 3 Beginners' course - Homework Post for Task 5: by @ghulamabbassss

5개월 전

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Hello Everyone! @imagen, Professor Thank you for the lecture and for sharing your knowledge, which helped me finish my project.

Let's Start

Explain in your own words what an Exchange is. Differences between Wallet and 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

'Tis is a website or digital platform that is generally authorised to exchange your cryptocurrencies for fiat money and vice versa, with the goal of obtaining the highest possible profit in each transaction while always adhering to the basic principle of supply and demand. In these transactions, other people do not intervene, implying that it is a whole chain interacting with your values, As a result, it is critical that the platform provides security and trust in order for users to have a positive experience with all of their transactions.

Differences between Wallet and Exchange

Differences-Between-Crypto-Wallet-and-Exchange.png
Reference

It is simple to distinguish between wallet and exchange. The difference arises from the fact that wallets are used to store cryptocurrencies that we already own, whereas exchanges are websites or authorised digital platforms that allow us to generate exchanges for fiat money or vice versa. Another distinction worth mentioning is the various types of wallets.

The scopeExchangeWallet
BeneficialExecute financial transactions ( sale and purchase).We can save and manage our cryptocurrencies.
FunctionsWith an online bank accountIt for cryptocurrency storage.
Type of ConnectionSome people may not require access to the internet (Cold wallet).Internet is always required.
Reinstate passwordWe can Store itWe can't store it.
Assets in your possessionExchange is in charge of holding and managing our funds.The wallet's owner is the overall owner of the assets.

Advantages and Disadvantages of DEX and CEX

Of course, DEX and CEX are not exceptions, but before we discuss the benefits and drawbacks of these two cryptographic tools, we must first comprehend their concepts.

CENTRALIZED EXCHANGE (CEX):

It is a financial exchange whose activities are overseen by trusted third parties who are in charge of the talks, i.e., the fund managers. Which implies that when trading, there is no privacy; rather, an entity will operate as an intermediary, necessitating the need for and importance of trust.

However, in order for that trust to exist, the user must first go through a series of tests that will generate the required scopes.

AdvantageDisadvantages
It is simple to use.It control a Centralized.
Options for trading are numerous.There is no privacy.
It has a High level of liquidityIn 'tis Hacking is highly likely.
To buy crypto assets, you'll need fiat money.Payment of the commission
••••The trusted third party will be responsible for storing all cryptocurrency.

DECENTRALIZED EXCHANGE (DEX)

Unlike the CEX, there are no third parties in the DEX because transactions are conducted from person to person (P2P), which implies that no tests are required to establish confidence because privacy has already been established. In general, these exchanges are set up using a smart contract on a blockchain network.

AdvantageDisadvantages
You have complete control over your cryptocurrencies.Knowledge is required for its use.
To carry out operations , privacy is required.It has a fewer possibilities for operation.
Commissions are very low.Demand and supply are both limited.
In this transaction , no intermediaries•••
Enhanced security••••
Exchange that is safe and secure.•••••

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

Before use to steemit, I had no experience with exchanges or anything else related to cryptocurrencies; but, thanks to cryptoacademy's virtual lessons, I have learnt a lot and it has proven to be really useful in my daily life.

My first exchange was made in Orinoco (a fiat money payment gateway) and the truth is that I had no idea if what I was doing was correct because I didn't even know how to use the memo key, but I completed it satisfactorily, albeit at a very low price, and I felt I had accomplished something incredible. After a few days, I returned to make another exchange and noticed that the price had increased,

I had already managed to create an account on the Binance exchange after a few classes, and it was truly a unique experience; I had the opportunity to break down the options one by one to become better acquainted; it also has its own academy and chat for any questions that the user may have; it is incredible to be able to move around in that world where we can even choose the person with whom we will interact; it is incredible to be able to move around in that world where we can even choose the person with whom we will interact

ogImage.jpg
Reference

For 'tis time, I just use the Binance exchange, and while I still have a lot to learn, I am confident that I will be able to do so through research, tasks, and practise.

Thanks for your time

Regard by

@ghulamabbassss

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Hi @ghulamabbassss, Thank you for taking interest in the 5th Task of the Beginners Fixed Class. Your grades are as follows:

Assessment AspectsRating
Presentation/Use of Markdowns1 / 2
Follow Rules and Guideline1.5 / 2
Quality of Analysis1.3 / 2
Clarity of Language1 / 2
Originality1.3 / 2
Total6.1 / 10

My Review and Suggestions:

  • You have completed the task.

  • Your explanation is too shallow, study the discussion more deeply, so you can add more information to your post.

  • Don't make your discussion writing italic, use italics to show only a few important words.

  • If you want to put the source of an image that you take on the internet, you should enter a link from the original source, not from Google Image. Please pay attention to little things like this.

  • Your explanation about the experience of using the exchange is very little, please add some more information and add supporting screenshots to make it better.

  • Many grammars are still wrong, please fix it. You can use Grammarly to help.

Thank you!