[DEX,CEX,Popular Exchanges and Trading] - Steemit Crypto Academy Season 04 - Homework Post for Task 7
3-) 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.
An exchange is a physical place where traders meet to trade by financial instruments. It distributes the price information required for any securities trade. It also ensures a systematic market. This allows us to exchange the stored Fiat / Crypto. That is, it provides the opportunity to act as an intermediary between buyers and sellers so that any of our crypto currencies can be exchanged in a simple trade.
There are two ways in which a transaction can be transacted.
⚜️Buy order : If the user wants to buy the quantity and price he wants, he has to execute a buy order.
⚜️Sell order : If the user wants to sell the quantity and price he wants, he has to execute a sell order.
There are two main types of exchanges based on the activities of buyers, sellers, investors and system guides.
🔹Centralized exchange
Centralized Exchange is a platform that allows Fiat to buy and sell crypto currencies for money as well as digital assets. Exchange operators act as trusted intermediaries in the trade and are in charge of storing and securing funds in the crypto market.
•Binance
•Poloniex
•Bittrex
•Coinbase
•Krakan
🔹Decentralized exchange
Decentralized exchange is a platform that allows for peer-to-peer cryptocurrency transactions without the involvement of intermediaries. Blockchain technology facilitates online registration of registered orders on platforms.
•JustSwap
•WavesDex
•EtherDelta
•AirSwap
•Uniswap
♨️Differences between a Wallet and an Exchange.
| Wallet | Exchange |
|---|---|
| You do not need an internet connection to carry out activities in your wallet. | Activation in the wallet requires an internet connection. |
| Unable to trade. | Trade i.e. exchange, retention can be done. |
| The security of the wallet rests with the user. | Accounts that have lost private keys can be retrieved. |
| Provides security for long-term cash savings. | Money is retained only during market exchanges. |
♨️Mention the advantages and Disadvantages of DEX and CEX.
♦️DEX-Decentralized Exchange
Advantages of DEX
✳️Security is relatively high.
✳️Transaction fees are low.
✳️There are no standard controllers because they are decentralized.
✳️You can join the exchange without authentication.
Disadvantages of DEX
✳️Unable to contact a supporter in case of a system problem.
✳️Unable to retrieve previous coins in the account when access keys are lost.
✳️The speed is relatively low.
✳️Maintains low liquidity as trade volume is low.
✳️Only cryptocurrencies can be exchanged.
♦️CEX-Centrlized Exchange
Advantages of CEX
✳️Being fast and flexible.
✳️Increase in trade volume.
✳️Assist the customer in difficult situations.
✳️Easily recover our account in case of loss or theft of private keys.
Disadvantages of CEX
✳️Increase in transaction fees.
✳️Security is relatively low.
✳️Minimize block resistance as well as transparency.
✳️Having to work to the rules of intermediaries.
♨️Have you used an Exchange before? Tell us about your experience.
I have used an exchange. I would like to talk about the Binance Exchange experience I use in this question. Binance is the largest exchange currently available and is a centralized exchange. I log in to Binance Exchange through my mobile. It allows me to enter the market easily at any time.
Binance has 5 support tabs. These are Home, Markets, Trades, Futures, and wallets. Each of these shows information related to separate transactions. Here Trades and Wallets help when making market transactions.
I have so far sold and bought various cryptocurrencies during the Binance exchange. Also I have done Steem withdrawal from Binance to Steemit wallet.
The screenshots below clearly show how I did when I bought Steem from the market to power up the Steem.
The screenshot I have downloaded below show how I have sold into TRX / BTC within the limit order.
The screenshot I have downloaded below shows you a Buy Order from BTC / STEEM in the market.
The screenshot I showed in the previous screenshot is listed as order details in my transaction as follows.
The following screenshot displays the command to withdraw the Steem I bought from the market.
The above is the article I submitted regarding homework task 7. The professor @imagen's article helped me a lot to complete this article and I studied it well.
#club5050 😀
#club5050 😃
Thank you so much for your support!