Crypto Academy Season 3 Beginners' course - Task 5: Dex, Cex, Popular Exchanges and Trading Cryptos || by ahsanjawed
Hello everyone and Welcome to my Task 5 Post of Crypto Academy Season 3 Beginner Course
Professor @imagen, how are you today? I'm @ahsanjawed, a member of the steemit network and one of your Crypto Academy pupils. This is my homework contribution for your Beginners course - Task 5 lecture, and I'll be writing on question 3.
Homework Task (Q.3)
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💠 Introduction
Since the birth of Bitcoin a decade ago, cryptocurrency has become a worldwide trending topic, resulting in the launch of a slew of new cryptocurrencies. The crypto market already contains over 11,000 cryptocurrencies, and it continues to become larger and more voluminous daily. People's interest in cryptocurrency has also risen dramatically.
However, launching and selling cryptocurrencies is not enough to provide a healthy network and crypto market; users must be able to trade and save their tokens in the same way that banks and markets do, which leads us to crypto wallets and crypto exchanges.
💠 What is a Crypto Exchange?
A cryptocurrency exchange is a digital platform where consumers may trade their cryptocurrencies for fiat currency or other cryptocurrencies.
A Crypto Exchange is similar to a market where trade and exchanges can take place, only it is primarily for crypto trading and it is also an online platform. Today, there are numerous such exchanges, each with its own set of characteristics, even though they are all crypto exchanges. Some exchanges, for example, offer capabilities such as margin trading and staking, while others do not. As a result, they each have their own set of strengths and shortcomings.
There are two sorts of cryptocurrency exchanges: centralized exchanges such as Binance, Huobi, and Kraken, and decentralized exchanges such as Uniswap, MDEX, and Sushiswap.
💠 Difference between crypto wallet and exchange
💠 Crypto Wallet
The main purpose of a wallet is to store tokens and keep them safe, but it cannot be used to trade them.
Wallets are far more secure since they contain private keys that are only known by the owner, making them impossible to hack.
Owners have complete control over their wallets (very private)
The owners of wallets have easy access to them whenever they want.
💠 Crypto Exchange
Tokens can be exchanged and purchased in the exchange.
Because the corporation hosting the exchange has access to your private keys, exchanges are less secure than wallets, and if the exchange is hacked, you may lose your valuables.
The firm that owns the exchange, notably in CEX, is in charge of the exchange, not the traders (less private)
An exchange can shut down for maintenance, and all users will have to wait until they're finished before being able to access it again.
We also offer exchange wallets, which are wallets that are already part of the exchange and can be used as private crypto wallets. As a result, this is widespread among users of a single exchange to trade more quickly on that exchange.
For example, the Binance Exchange has a Binance wallet where you can store your tokens and trade them directly. It also applies to a variety of other exchanges.
💠 Advantages & Disadvantages..?
💠 DEX (Decentralized Exchange)
💠 Advantages
Because decentralized exchanges employ blockchain technology, you have complete anonymity and control over your account during deals.
Using decentralized exchanges incurs few, if any, fees and commissions.
Users have complete anonymity on decentralized exchanges, and no KYC (know your customer) is required for registration.
Because decentralized exchanges use blockchain technology, they have a top-notch security mechanism that cannot be hacked.
Decentralized exchanges eliminate the need for an intermediary during transactions, allowing users to deal faster and more independently.
💠 Disadvantages
Unlike centralized exchanges, decentralized exchanges are difficult to comprehend and use. To be able to use them effectively, individuals must be quite skilled in Crypto trading.
Decentralized exchanges exclusively deal in cryptocurrencies and do not exchange them for fiat money.
Because there is no KYC in a decentralized exchange, if you transfer to the wrong individual, you will not be able to retrieve your asset.
Some centralized exchange functions, including margin trading, staking, and stop-loss orders, are not available on decentralized exchanges.
In the crypto market, decentralized exchanges are not yet widely used.
💠 CEX (Centralized Exchange)
💠 Advantages
In the crypto market, centralized exchanges are well-known and well-understood.
KYC verifications are in place so that errors in transactions may be quickly recovered, and there have been examples of money laundering and online fraud in centralized exchanges.
The centralized exchanges have a variety of fascinating features and services, such as margin trading, stop-loss orders, and even peer-to-peer trades.
Transactions and trades on centralized exchanges are very well managed and precise.
The user interface of centralized exchanges is quite simple to comprehend, which makes trading a lot easier.
💠 Disadvantages
Decentralized exchanges are more secure than centralized ones. In truth, CEX has been hacked in the past, resulting in the loss of assets.
Because the firms that administer centralized exchanges have complete control over them, there is less privacy, and every transaction must be approved by the corporation that also acts as an intermediary.
For trading, most centralized exchanges charge significant fees and commissions.
Because centralized exchanges also use KYC verification, there is little or no anonymity.
💠 Exchange I have used
As a newcomer to the cryptocurrency industry, I've only utilized a few exchanges, including Binance, ProBit Global, and Huobi Global. So I'll go into Binance and ProBit in a little more depth.
Binance is unquestionably the most popular cryptocurrency exchange to date. It is a centralized exchange with a more decentralized branch, or should I say extension, called the Binance DEX. Binance also has decentralized features like peer-to-peer (P2P) trading. It contains an integrated wallet where you may store BNB, Bitcoin, Litecoin, Steem, BCH, ADA, Ripple, Dogecoin, and a variety of other networks.
Binance essentially trades all of the most popular cryptocurrencies on the market.
Binance also allows you to deposit fiat dollars and exchange them for crypto tokens.
You may also see the current market pricing for coins. Binance is truly a one-stop-shop.
I've only been able to send steem to my Binance wallet and swap it for Bitcoin thus far.
Cc:
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Hi @ahsanjawed, Thank you for taking interest in the 5th Task of the Beginners Fixed Class. Your grades are as follows:
My Review and Suggestions:
You complete the task.
You structure your article writing very well.
No need to put a tag on the blog content, enter the tag in the tag column that has been provided.
There are some grammatical errors, please pay attention to grammar before posting.
Thank you!
Thank you sir
I will surly look at ma mistake.
@steemcurator01