Hello again respected Professor @yousafharoonkhan. Thank you for the effort and dedication you put into your classes. This week's assignment has needed a lot more research and work, so I can say that the reward has been even greater. For the best treasure, we can have is knowledge itself.

Let's start.

_{Image edited by me in Powerpoint}

Q1-Write the definition of Decentralized and Centralized Exchange in your own words.

Decentralized Exchange: Those exchange and trading platforms that are governed by the rules of decentralized systems, in other words, those platforms where the users have complete control and management of the exchange process and its assets, without being governed by a central figure.

Centralized Exchange: Those exchange and trading platforms that are governed by the rules of a centralized system, in other words, operations are arbitrated and controlled by a central authority figure (the exchange's website). This is in charge of monitoring and regulating all activities within the Exchange, which results in users not being in control of their assets.

Q2-Explain in your own words the difference between decentralization and centralization exchanges.

1-First of all, the control of resources is the first thing that differentiates them. In the Decentralized Exchange, users have complete control and possession of their crypto assets and passwords.

In the Centralized Exchange, the user does not have control of his assets. In fact, the operations are performed with the exchange's fund. In addition, it is the site of the exchange that holds the secret keys of the users.

2-Decentralized Exchanges are global markets open 24 hours a day, allowing users to trade in the desired currency at any time. This is because Decentralized Exchanges operate on Blockchains, so in case any server goes down, there will always be others to continue operations.

In the case of Centralized Exchange, they operate on a single central server. If for any reason, the central server goes down (for maintenance or any other reason), the operations in the Exchange cease until the problem is solved. For this reason, Centralized Exchanges are unable to operate 24/7.

3-Like these, there are many other differences, but in summary, the central difference between the two exchanges is a difference of Principles. These principles lead Decentralized Exchanges to be open but at the same time more secure against hacking.

On the other hand, it leads Centralized Exchanges to be controlling and possessive, and to gather everything on a single server, this feature brings a weakness, which is: making them easy targets for hackers and scams.

For example, the owner of a Centralized Exchange could easily defraud users by taking funds from accounts, which as already mentioned, users are not even in control of the users. For example the recent case of this Exchange in Turkey. ^Article

On the other hand, this is impossible in a Decentralized Exchange, since there is no third party involved in the operations.

Q3-Write about any 2 best centralized exchanges of 2021. why are they best in front of you?.

My top two centralized exchanges of 2021 are Poloniex and Binance.

I put them in that order not because I think Poloniex is better, but because in my opinion having experience with one and then with the other is a natural evolution for those who like me are starting in the world of cryptocurrency trading.

Poloniex:

It was my first exchange platform, so I am fond of it. In its favor, I can say that its interface is really simple and that with minimal knowledge of trading you can register and make a trade.

One point against is that it doesn't have all the crypto asset options you would like to have, especially since the cryptocurrency pairs are sometimes limited. However, for someone who has started his crypto journey thanks to Steemit, the good news is that it has Steem and Trx.

Here you can see a screenshot of the last TRX deposit and the last BTT transaction I made yesterday.

_{Poloniex Account Activity. Image taken by me on April, 27th from my Poloniex account.}

Everything in life moves forward and evolves, so after two months in trading I was forced to migrate to another platform, this is it:

Binance:

This platform is wonderful, its registration is a bit more complex, however, making a trade is still simple.

The really strong point of Binance is the wide variety of cryptos available, in fact, it was this feature that led me to create an account, as there were two cryptos (Sharetoken (SHR) and Chiliz (CHZ) that are not yet available in Poloniex.

Here is a screenshot of my verified account. It is a new account in which I have no funds yet. But I plan to transfer funds as soon as I have them.

_{Binance Account . Image taken by me on April, 27th from my Binance account.}

Q4-Install Metamask, and share step by step screenshot.

All images have been edited by me and taken from my Metamask account. ^Source

_{Step 1: Go to the website and click on the download button.}

_{Step 2: Select the version that fits your computer. In my case I selected the Chrome version.}

_{Step 3: Click to add to Chrome.}

_{Step 4: After completing this step a pop-up window will appear asking for confirmation to add Metamask to Chrome. We click where the arrow indicates.}

_{Step 5: When the download is complete this screen will appear. Then click to start.}

Once the download is finished, we create a wallet:

_{Step 1: Click to start creating a new wallet.}

_{Step 2: Click on privacy agreement.}

_{Step 3: Create a password.}

_{Step 4: Reveal, copy and confirm your secret phrase.}

_{Step 5: Finally this window will appear. Click on the arrow to start our exchange.}

Q5-How to use Uniswap exchange, and Swap/buy or swap/sell any coin.

_{Step 1: After the previous steps we will be sent to this window. Click on the arrow to start trading.}

_{Step 2: In this step, we must choose the crypto we want to exchange, as well as the amount (I selected 100 ETH). Then select the crypto to exchange with (I selected UNI). Finally, click on Review swap.}

_{After finishing step 2 this waiting window will appear.}

_{Step3 : Finally check the amount of coins you will get. And finally click to confirm the operation.}

Conclusion

Knowing the differences between decentralized and centralized exchanges is really interesting, not only for the knowledge but also because it opens the door to many opportunities.

It is always important to know the tools we have around us, to know what they are for, their pros and cons. But above all, it is important to know how to use them. and know what they can do for us.