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Once again am glad for the opportunity given by the cryptoacademy this week. It is such a pleasure reading through the lecture given by @yousafharoonkhan, it is quite an interesting one here…learning more about the metamask and swaps together with the operating strategies of Decentralized exchange and centralized exchange. For this post, I will be writing on the following according to the task given.

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

Decentralized Exchange is an exchange that operates on a Decentralized system. Before we talk about this, what do we mean by exchange? Exchange is a word which deals with a give and take exercise. Here, there is always a transaction between two bodies or more either to buy or sell. Talking about decentralized…it deals with distribution. So when we hear of decentralized exchange, in simple words means the transaction or buying and selling which is carried out in a distributed system. In the decentralized exchange, the transaction terms or outlines are defined by the buyer and seller, it does not involve any other intermediary before transactions can be carried out.

On the contrary, Centralized Exchange deals with the transaction or buying and selling which is carried out on a centralized system. A system where every transaction is controlled by a central unit. The centralized exchange cannot do without an intermediary between the buyer and seller of a particular asset. Here, buyers and sellers act according to the terms and conditions of the exchange and at some point contrary to its demands, transactions may be muted or nulled.

Difference between Centralized and Decentralized Exchange

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Although decentralized exchange and centralized exchange both aims at the same goal of exchanging assets but there are variable intricacies that differs each other which are as follows:

• Centralized Exchange is an exchange owned by a central authority that manages the affairs of the exchange while Decentralized Exchange is an exchange that is carried out on the decentralized system.

• Centralized Exchange has a higher trading volume while Decentralized Exchange has a lower trading volume.

• Centralized Exchange has a lower security state because the exchange has a third party interference and thus becomes a risk for theft, etc. while Decentralized Exchange has a higher security state because it is being run or carried out at the user’s disposal and terms or will.

• In centralized Exchange, there will always be a requirement of KYC before any transaction is carried out but in Decentralized Exchange, KYC is not required but rather an access to your wallet at your disposal.

• In centralized Exchange, time might be factor and that makes the exchange slow but in decentralized exchange, time is never a factor thus making the system fast in transaction

2 Best Centralized Exchanges of 2021

Binance

Binance is one of the biggest and most reliable and well known in the centralized exchange. They have trading, investing and staking potentials and as well have list of valuable coins which can be traded on. They have ease of funding their account with the help of bank transfer or VISA/MasterCard.

Binance is my favorite because, it has multiple inventiveness which allows for extra crypto and also its safety when it comes to high liquidity trading incentives. With their native token BNB, it gives an opportunity for arbitrage trading.

CoinEx
CoinEx is also another centralized exchange with a native coin, CoinEv token (CET) which can be used in trading. It has a 24 hour trading volume of about $239,218,286 USD.

Install Metamask, and share step by step screenshot, (Practical step by step)

In installing the Metamask, using the Uniswap, the following steps are followed as shown below:
First off, you visit the “app.uniswap.org” in your browser

Then click on Connect to a wallet button as shown at the top right corner of the page

Then select on the Install Metamask button as shown below

Then click on the Download Now button as shown below

You now select on the Chrome option among the devices as shown below

Then click on the Install Metamask for Chrome option as shown below

Click on the** Add to Chrome** option at the top right corner of the page as shown below

Click on the Add Extension option as shown below

Then click on the Metamask icon extension to visit as shown below.

After click getting started option below, this will direct you to another page were you will click on the create new wallet option as shown below.

You will then click and agree to continue as shown below

Here, you will be asked to create a password with minimum of 8 characters and also confirmed, and then agree to the terms of use by clicking on the box, then click on the create option as shown below.

After this, you will be directed to download your secret backup phrase and save it by clicking on the option that is with a closed padlock and then you click on the next option as shown below.

After confirming your secret backup phrase by entering the phrase that saved, and then click on the confirm button, you will be directed to a page as shown below. And then you click on the All done option.

From here, your account is ready and you can start swapping.

How to use Uniswap exchange, and Swap/buy or swap/sell any coin (practical step by step)

First off, using the Uniswap exchange for buying and selling of any coin, the following steps are shown below:
Visit the Uniswap home page by opening the link https://uniswap.org/ on any browser, then you click on the second link as shown below

After that, you will be redirected to another page were you will click on the Use Uniswap option at the top right corner of the page as shown below.

After this, you will be redirected to another page were will be able to connect a wallet that is funded to Uniswap so you can start swaping them based on the coins you want to swap them with. This is done by clicking on the Connect wallet option as shown below.

After this, you will be redirected to pop-up page where you can locate MetaMask, select on the MetaMask option as shown below

After this, you will be redirected to another pop-out at the right-hand side of the page. Here, you will click on the Next option and then on the Connect option as shown below.

Once you are done with this, you will redirected to a page were your MetaMask wallet will be shown and also the balance of it. Here you can see at the top right corner an address, which is your MetaMask wallet address as shown below.
From this stage, you can start swaping by entering the amount and also selecting the token you are receiving after the swap and thus your trading amount will be updated immediately.

Conclusion

I have in a much deeper sense enjoyed this lecture from Professor @yousafharoonkhan. Although decentralized exchange and centralized exchange has both its advantages and flaws, but to this the intricacies in its usage and application which suits a user’s demand is what is key. So having such a deep understanding of this lecture is a plus to many of the users of this blockchain. Thanks to the cryptoacademy community for such of an opportunity as this.