Crypto Academy / Season 3 / Week 1 - Homework Post for @allbert || Wallets and Exchange

Wallets and Exchange

To comprehend the difference between cryptocurrency wallets and exchanges, we first need to comprehend that these kind of wallets aren't like our pocket wallets. The pocket wallets which hold your dollars in paper, Is not like the cryptocurrency wallets which don't store cash. Rather they record the transaction which are recorded in the blockchain. Since they record the transaction in the blockchain they can monitor how much token you have or more accurately Get your Balance while you send or get more crypto currency. Most Cryptocurrency wallets are software programs that store your public key which is the key used to get reserves and your private key which is utilized to sign Transaction which shows that you are the owner of the public key used to get the coin. These keys are printable or written on a piece of paper and should be kept hidden and save so you can have the ability to send and get your Cryptocurrency. Your private key would go about as your secret phrase and your public key will resemble your email address.

An exchange, is a platform (normally an approved site) where you can trade your fiat currency for Cryptocurrency and the other way around paying the price set up in the market as at that point and continually trying to acquire the most profit by following the rule of free offer and request. This is on the grounds that on an exchange you can transact with individuals who sell their coins and other people who buy them, and gives security and certainty to its Users to guarantee that all exchanges that happen in it work out as expect.

The large difference between Cryptocurrency wallets and Exchange is that the motivation behind exchange isn't to keep or store your digital currency. Rather the fundamental objective or motivation behind an exchange is to give you a spot to have the option to buy, sell or exchange one Cryptocurrency for other coins or cash like US dollars. While that of a wallet is to store Cryptocurrency and hold record of transaction and give security at its maximum to Cryptocurrency.

In terms of fee both wallet and exchange have their own function and they all own to these functions. Swapping of an cryptocurrency on a wallet cost a lot and insures a great lose if compared to that of an exchange but transfer of asset is way too cheap on a wallet than a withdrawal from an exchange. Conversion of coins from a network on the blockchain to another(i.e converting a erc20 token to a bep20 or a trc20 token) is a function of an exchange but can also been done in a wallet but it's cost more in terms of fees in a wallet.

Why do I think people should have more than one exchange account

There are numerous kinds of exchange and they all fill various purposes:

• FIAT to crypto E.g Coinbase, Kraken, Bitstamp, P2P trades. These exchange have the highest fees and KYC is needed, since they need to manage through the financial system.

• Crypto to crypto E.g Binance, Poloniex, Kucoin. These exchange have moderate exchanging expenses and little KYC is needed.

• Crypto subsidiaries (future, alternatives, swap) E.g bitmex, FTX, Deribit. These exchange have the most reduced exchanging expenses.

• Specific exchange : There are exchange that are useful for some certain sorts of exchanging, for example, scalping, swing trading and specialized analysis.
  choosing exchangerelies upon your objectives and what you need to do.

It is in every case great to utilize different exchange like for instance use Kraken to purchase and sell for fiat Cryptocurrency, bitmex for future and leverage trading, binance to exchange the various altcoins there and also In this way you are getting your assets safe incase one of the exchange is hacked or something surprising occurs and on top of these some exchange offer various instruments that are unique to that exchange.

Do you have an exchange account? and Why that specifically?

I do have exchange accounts, to be specific the first one I created was in 2018 on binance and up till date it is still my number one exchange. My reason of sticking to binance is mainly because binance is the biggest exchange platform and I feel it's the most secure of all. Binance has a lot of features I need in Cryptocurrency trading and they have good enough rate.

What are better? Wallets or exchanges.?
what is good for the goose might not be good for the gander, but to me the better one is the exchange as they can both be used for the trading to reduce fees and also serve as wallet. Wallet or exchange, each have its function and are better off in its role, owning to them. Security is high when u use a wallet and ownership of your token is sure on like in the exchange. only wallets can be link to a website making it's transaction via decentralized application. Likewise, making use of wallet for exchange purposes belittle the wallet and even make them inferior to an exchange in all general terms as some users tend to use an exchange to hold their asset because of the ease of trading.

Wallets are of different types,

• There are wallets you can download on your PC. You can just access this wallet from the PC you downloaded the product on.
• There are wallets which run on a cloud. This implies you can get to it from anyplace, notwithstanding, that implies that your private keys will be stored online which makes you more helpless against possible hacking assaults.
• There are wallets which run on an application on your telephone. The pleasant thing about this choice is that you can utilize it essentially anyplace when buying things as for me an exchange is better off.

Exchange are of different types, too

• Brokers: Sites that permit individuals to purchase Cryptocurrency at a value set by the representative.

• Exchanging platform: Sites with exchanging platform assist with interfacing purchasers and sellers hereby taking a transaction fee for every exchange.

• Direct trading: platform that give direct individual to individual exchanging. These kind of trade don't have a fixed market value, every vendor will set their own exchange rate.

The word better in each of wallet or exchange as they play off their own function can likewise be concluded by individuals after examining all the above statement.

Creation of an account in a wallet

I will be creating an imtoken wallet .
Step1: I visited the play store to download and install the imtoken wallet to access the wallet.

Step 2: After installation I open the app and on the first page I click on create identity

Step3: I accept the imtoken term of service and I clicked on confirmed

Step4: I filled in an identity name and create a strong password for the wallet and click on create.

Step 5: I confirmed coins to be added in the wallet by clicking on confirm

Step 6: I wrote down the mnemonic phrase and input it as it was given to me.

Step7: I click on start now to move to the home page of at imtoken wallet.

Creation of an account on an exchange

I will be creating a Kucoin account.

Step1: I visited the play store to download and install the Kucoin exchange application to access the Exchange

Step 2: I signed up for an account using my email and I did an intelligent test before requesting a verification code to my email.

Step 3: I moved to my Gmail to copy the code to input it.

Step4 I set up a password and accepted the term and conditions of use

Step 5 I click on sign up to move to the home page of the Kucoin exchange app.

</center

Conclusion
For all things have both advantage and disadvantage, wallet and exchange are no exception. It's is then encouraged to get both the wallet and an exchange account for the best and most effective output in the Cryptocurrency world.