Steemit Crypto Academy Season 4 Beginners' course - Task 7 II Dex, Cex, Popular Exchanges and Trading Cryptos

Hello to all. I am much excited to learn something new. This lecture is very informative and easy. Thank you professor @sapwood for delivering the lecture in such easy way

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Question No- 1) WHAT IS AN EXCHANGE?

Exchange is a place where we sell or buy the products. The sellers present their product and the buyers buy the products by pay something. The buying and selling activities are performed on the exchange platform. But if we talk about the exchange market in crypto world, it's concept is not much unique. The crypto exchange market is a platform where the trading of the crypto currencies is performed. The sellers and buyers are there to buy and sell the crypto currencies.

A number of crypto coins are there. You can buy any among them in return of the US dollar too. You can make investment in any of crypto currency. The exchange platforms also offer you tool to analyze the market. The analyzes of crypto assets is much important before making an investment. The analyzes tools on the crypto exchange help you to make the trading decision in a wise way.

The crypto market is versatile. The market's price keeps changing. There are always the chances of getting profit but some risk of losing money too are there so we should be very careful before making any move in crypto exchange.

The traders make the profit by trading the crypto coins. The trading has become much easier and fast as no third party is required on the exchange platform to perform the trading. The exchange platforms provide the high privacy and full control to users on their account. You can
buy crypto coin, trade them and even store them on exchange market.

The exchange platforms have versatility in its usage. You can earn the high profit by trading and if you want to hold your assets, you can hold for long term with full security on exchange platforms.

There are two types of the crypto exchange market. The first one is decentralized and other is centralized. The centralized are those where the third party involve always to complete a transaction. If you want to transfer your funds to anyone or want to trade, the third party involve there. This way is slow and costly as that third party deduct some money as their transaction fee.

The centralized platforms are owned by a person who run it according to his own rules and regulation. He has full control on the users account. So the privacy is also not so high.

But the decentralized way is fast and secure. There is no middle man there. Each transaction is performed directly between the users. Such exchanges are no the property of someone specifically. No one have control on someone's personal information, not even the management can access the user's wallet and private data.

So the decentralized exchanges are consider more secure and fast. The transparency and immutability of the data on such exchanges make them more secure.

Question No-2) What is the Difference between Wallet and Exchange?

Wallet	Exchanges
The basic purpose of the wallets is to hold and store the crypto coins. You can hold the coins as much long as you want. You cannot perform the trading on the wallets.	The exchange platforms are used for trading purpose. Yo can buy and sell the coins, earn profit, do stake and get income,. The plus point is you can also store you crypto currencies on the exchange platforms. exchange platforms are used for trading purpose of crypto assets.
The wallets are the software which are use to interact with the blockchain.	The exchange are build on the blockchain.
Some wallets allow you to perform the staking but trading is still not perform on the wallet.	Exchanges are consider more useful as you can perform both activities on the exchange. You can perform the trading and can store the assets too. Some people hold their assets on the exchanges rather than wallet.
The wallets are very secured.	The exchanges are also secured. But the wallets are more preferable to store the coins as compare to the exchanges. Because the exchanges do not provide you as much security as you experience on the wallet.
There are online and offline nature of the wallets.	There is no offline version of exchange. You can access it only with internet.

The wallets are mostly decentralized. This mean that the wallets are more secure with no middle man.

The exchanges are mostly centralized. This mean that the exchanges are own by a person or a company which can access the user's account and personal information.

Question No-3) What are the Advantages of Decentralized Exchange

Advantages of decentralized Exchanges	Disadvantages of decentralized exchanges
The decentralized exchanges are not own by a person or a company. So users need no to follow the strict rules and regulation of any middle man.	The decentralized exchanges are complex.
The decentralized exchanges are transparent.	The decentralized exchanges are transparent. Even those can see all transaction activities who are not belong to the transaction.
The security and privacy on the decentralized exchanges is high. Because no middle man concept is here to access the user's personal data.	The decentralized exchanges can be use to perform the fraud transactions. NO one is there to rise a question.
Decentralized exchanges are a little bit complex	You can send fund to anyone around the world. SO this exchanges can be use to send the money to an illegal person or a criminal.
If you perform a wrong transaction, you cannot track it back.	The users have to manage all his account activities by himself.

If you lost you keys, you will lose your account. No way to recover your password. If you lost you keys, you will lose your account.	The user have to take backup of his keys. No way to recover your account in case of losing the keys.
The decentralized exchanges are immutable	If you perform a transaction by mistake to any wrong account, you cannot track it. You will lose your money forever.
The decentralized exchanges are fast	You are responsible for all your mistakes. No way to clear your wrong acts on the decentralized exchanges.
The decentralized exchanges are less costly. The transaction fee is not so high.	The cost of development of decentralized exchange is high.

Question No-4) What are the Advantages of Centralized Exchanges

Advantages of centralized exchanges	Disadvantages of centralized exchange.
The centralized exchanges are own by a person or a company who run it according to their own rules and regulation	The central authority can access your personal information.
Centralized exchanges are not transparent.	The central authority can change the stored information.
There is always a middle man who manage and maintain the system in an organized way. access the user's personal information and wallet. So the users do not feel more secure on centralized exchange.	The middle man can access the user's personal information and wallet. So the users do not feel more secure on centralized exchange.
A ready made platform is given to the users to perform trading. The centralized exchanges are easy because here the users feel less burdened.	The user's wallets are even accessible to the middle authority
If you lose your keys, you can recover your account with help of central authority who enable you to recover your password and keys.	The central authority have your keys and password.

If you perform a wrong transaction mistakenly, the middle man help you to clear your mistake. You can track the transaction and get your money back. So transactions are reversible.

The middle man have more control on the user's account as compare to the user himself. Moreover, the centralized exchanges are costly and slow.

Question No-5) Have you used an Exchange before? tell us about your experience.

Yes, i use the binance exchange platform to perform all my trading. I even store all my assets over there. This exchange platform is highly secure. I can buy and sell the trade within few seconds. This exchange platform is fast and less costly. The transaction fee is very minor. I can perform as much transaction as i want.

The binance exchange platform provide you multiple way to analyze your selected market. Multiple technical tools are there to analyze the market. This is so easy to decide where the market is trending and all about the any coin. Just search for that coin on the search bar and get all the information about it.

The trading view is available on the binance of each coin which help you to analyze the market quickly. You can predict the market future by seeing the candles direction on chart. You can earn high profit because of high liquidity and trading volume.

You can change the chart from candles to any one among below screen short just by clicking on them.

Conclusion

The crypto exchange market is a platform where the trading of the crypto currencies is performed. The sellers and buyers are there to buy and sell the crypto currencies. The wallets are use to hold you assets and to store them with high privacy. The centralized and decentralized exchange have their own benefits. Each have multiple feature which make them unique and attractive.

Many Thanks to

@imagen