Homework-Task 2 || Cryptocurrency Exchanges and Cryptocurrency Wallet by @aniqamashkoor
Hey everyone this is @aniqamashkoor. I am making my homework post for week two for @gbenga. Thank you so much @steemitblog for taking this initiative and starting these lectures on crypto world. It is very helpful and with each passing week I am learning so many new things with the help of lectures provided by respective professors.
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Crypto currency wallet and crypto exchange are both two important tools. There are some major differences that make crypto wallet and exchange different from each other. With Crypto wallet we can store our crypto currency but with the help of crypto exchange we can exchange it from one coin form to another.
As it is clear from the word wallet. Wallet is a place where we keep our money so same is the crypto wallet. Crypto wallets are the wallets in which we store our cryptocurrency. Cryptocurrency wallets are app same like other apps we use on our smart devices. With the help of these wallets users can make transactions too like purchase, transferring money from one account to another. It is an app that enables its users to store and restore/import their digital assets. For the safety or security of crypto wallets keys play most important role.
A crypto exchange is an exchange where we can sell and buy our cryptocurrencies. We can exchange our digital asset from to another with the help of these online platforms. Different crypto exchanges may have different options and features. Some are made for traders and others for fast cryptocurrency exchanges. Some of the best crypto exchanges are Coinbas, Coinbase Pro, Binance.
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Will You Keep Your Crypto Assets in a Wallet or on an Exchange?
There is no problem in keeping your assets in exchange but for me I keep my assets in wallet because I find it safe and secure and there are less chances of getting wallet hack.
Why you would prefer to keep your asset in wallet?
I would prefer to keep assets in wallet rather than exchange because of following reasons.
Crypto wallets offers us 2FA (Two factor authentication) and as well as a backup of keys so this backup option is very helpful when we lose our wallet or forgot our password, we can access our wallet with the help of this.
No Ownership with Crypto exchange
We are the only owner of the private keys with private wallet but if we use exchange wallets, our private keys are in control of the exchange so these keys are of very much importance and if an exchange gets hack it may result in loss of our wallet too.
High Security
When we store our currency in personal wallet, it is in control of us. There is no one in between to whom we have to trust with any information. We are the direct dealer. Having direct access over our wallet guarantees us high security.
This is all from my side. @gbenga please have a look and if I have missed something or made a mistake please make me correct.
Thank you.
Special mentions;
@steemcurator01
@steemcurator02
@steemitblog
@gbenga