Steemit Crypto Academy Season 3 Beginners' course // Homework Post for Task 5: [Dex, Cex, popular exchanges and crypto trading] by @shylock2002
Hello everyone,
Today am very glad to continue with my beginners course home work task 5.Which was assigned by our great professor @imagen .The lectures are very simple and understandable,So I will be answering all the questions given.Without wasting much time I would like to start my home work post immediately.
Explain in your own words what an Exchange is. Differences between a Wallet and an Exchange. Mention the advantages and disadvantages of DEX and CEX. Have you used an Exchange before? tell us about your experience.
★ Explain in your own words what an Exchange is.
Exchange:Can simply be defined as a platform where everyone can buy and sell cryptocurrencies.We mostly trade with fiat currencies or any other digital asset.Currencies such as dollar,Euros,Yen,Pounds are all examples of fiat currencies and digital assets can be exist electronically interms of dominion names,digital currencies and files.Exchange can also be use to trade from one crypto to another,That is converting Bitcoin to Litecoin.Example you can make payment with credit card or any other form of payment,For the exchange of a digital cryptocurrencies.
In the other hand,A classic cryptocurrency exchange is available the whole 24 hours,Meaning it works everytime of the day,Also one of the advantage why people like is because no one knows who the seller or buyer in all the exchange in cryptocurrency.
★ Differences between a Wallet and an Exchange.
| WALLET | EXCHANGE |
|---|---|
| It is decentralized that is there is no any central leadership checking activities | It is centrized that is there are group of people or central heads who checks all the activities |
| It has higher security system and free from all hackers because every user has his or her own private keys to operate the wallet | But with exchange not all keys is managed by the owner especially the private key due to this it is not 100 percent secured |
| It is decentralized making use of wallet separately | It is centralized so you can’t use your exchange separately |
| Tokens or coins stored in your wallet can be left for a longer period of time | Assets stored in your exchange can’t be kept for longer period of time |
★ Mention the advantages and disadvantages of DEX and CEX.
★ADVANTAGES OF DEX.
It has a well built security and considerable user control given to the holder of assets.
It has a very cheaper or low transaction fees compared to CEX.
Control over your funds in DEX you have an entire control over your funds and cannot be lost and also funds in wallet maintain it standard in next future even if exchange drops down.
In DEX users do not need to transfer their assets to any third parties.
DEX gives a very faster exchange process as compared to CEX
★DISADVANTAGES OF DEX.
It is not familiar to beginners,Therefore first time functioning with it will be little hard for you.
People attention to DEX is very low unlike the CEX which has gain the awareness of many people.Yet the DEX is about to gain attention.
In DEX fiat money is not accepted when it come to crypto trading.
It carry out transactions very slowly.
source
★ADVANTAGES OF CEX.
Gives a reliable and gives an additional security when it comes to transactions and trading.
CEX accept fiat currency unlike the DEX it doesn’t.What we called “entry-level exchanges” is where you can deposit your fiat currency and start the trading
It is very known and is used by so many users around the world and it has been endorsed and valued.
It has a very high liquidity because of the trading volume
★DISADVANTAGES OF CEX.
Transaction fee is very high as compared to DEX.
Since it contains large number of assets,Centralized exchange is the main target to hackers.
You do not have full control of your own funds,Due to the reason you are assign to use your private key for any exchange.
There is intruders between sellers and buyers because it involves third party when it come to transaction process.
★Have you used an Exchange before? tell us about your experience.
Yes please I have used exchange before and am still using in most of my everyday activities.The exchange I used most is the Binance exchange.To say the fact first time i entered the crypto world using this Binance exchange it wasn’t easy,I was really struggling until a good friend of my assist me because he has been on this crypto world platform and have been using the Binance exchange for almost a year and having a high reputation so you can see he has more experience more than me because it almost two months he introduced me to the platform.
Because am very smart and willingly I have now know how to operate on the Binance exchange and I can operate on my own and it is very fast and simply trust me.I wasn’t having an idea that you can transfer coins from one place to another this can be done in a short period of time.
My first transaction made on the Binance exchange is I transferred TRX and steem to my Binance exhange from my wallet account to my Binance account.I couldn’t believe how fast and simple the transaction was,I really enjoy making transactions to my Binance exchange account because I have not been getting difficulties and it is easier to operate when you get a good teacher to guide you.
CONCLUSION
I have really learned a lot on this home work from our professor @imagen .This lesson has made me do a lot of research so I have more experience on DEX and CEX.And I can also say from my experience and understanding on the lecture I can say CEX is more easier and secure than the DEX.
THANKS FOR VIEWING.