Crypto Academy Week 2 Homework Post for [@gbenga]///Will You Keep Your Crypto Assets in a Wallet or on an Exchange? By @samuel20( set at 100% powere up)

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Greetings to all steemians.Trust you are all hale and hearty.I wish to participate in the second week of the ongoing crypto class facilitated by professor @gbenga in which he lecturer on the topic:
Cryptocurrency Exchanges and Cryptocurrency Market Capitalization

According to professor @gbenga he defined Cryptocurrency Exchange.Permit me to quote him verbatim

For the purpose of this course, I will be referring to Cryptocurrency exchange as an organized financial market/marketplace where buyers meet with sellers and vice versa to trade crypto assets. There are exchanges far beyond the Cryptocurrency market, exchanges that trade Commodity, Foreign currency, Security, etc

From that defition,the gentle man clearly stated that Cryptocurrency Exchange is just like a market where digital currencies are bought and sold.

Cryptocurrency Exchange could be DECENTRALIZED or CENTRALIZED.

In DECENTRALIZED exchange there exist a peer to peer buying and selling of crypto.It is not controlled by an intermediary company or a third-party.

On the other hand, CENTRALIZED exchange involves an intermediary company or a third party that the traders asset is trusted with.The exchange company serves as a link between the buyer and the seller.

NOW TO THE HOMEWORK

The Homework expects us to suggest between keeping our crypto assets in a WALLET or in an EXCHANGE and the reason for the preferred decisions.

MY ANSWER

First off i will have to define a WALLET and an EXCHANGE.

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•A WALLET is a software program in which cryptos are stored.The wallet has a private key or secret number that corresponds to the crypto.The private key gives access to the wallet.

Therefore with the existence of the private keys to the wallet;only the owner of the wallet can access the cryptos in wallet unless the private key(s) have been compromised.

Wallets facilitate the sending and receiving of crypto and also shows the user the balance at every point in time.

With wallets you have full control of your funds.You decide when and how to transfer your digital currencies since you have all the necessary passwords and private keys.

•On the other hand an EXCHANGE is a market where cryptos are bought or sold.It allows customers to trade crypto or digital currencies for other assets such as conventional Fiat money and other digital currencies.

Unlike wallets,Exchanges does not give you full control of your funds.Part of the control of the funds is in the hands of the exchange company and as such there could be cases of you not getting your funds whenever you want it.

Worst of it all,the exchange accounts could be hacked by hackers and all your crypto would be gone since you don't have full control of the funds.

Having looked at the two methods.I will keep my crypto assets in a WALLET instead of an EXCHANGE.

WHY I WILL CHOOSE KEEPING MY CRYPTO ASSETS IN WALLETS INSTEAD OF IN EXCHANGE

Security is the most important aspect in crypto business and virtually in everyother business that involves assets.

A wallet offers a high degree of security to our crypto assets.This is because the private keys is been generated by the owner of the wallet.

So the owner stores the private key in a safe place.No other person can access the funds in the wallet except if the owner has given out the private key to another person.

Another beauty of keeping our crypto assets in a wallet is that the owner can still change the private keys if he/she suspects that the key has been exposed.

Furthermore,some wallets like the Steemit wallet allow users to convert their crypto assets to non-liquid form such that withdrawal can happen in four installments.

Therefore in a case where the keys have been compromised,it will take the hacker about four installments to withdraw the funds of which the owner can recover the account before the four week period.

The need for keeping crypto assets in a wallet cannot be over emphasized.It is almost impossible to lose funds in wallets as against when the funds are in the hands of Cryptocurrency Exchanges.

Thank you for reading my homework.
Special attention to @gbenga @steemcurator01 @steemcurator02