Steemit Crypto Academy season 2 week 3 homework post for @yousafharoonkhan : Centralised and Decentralised Exchange.
Hello, good day steemians, I would like to use this opportunity to express my gratitude to the crypto Academy community once again and to @yousafharoonkhan for bringing us this episode. Certainly, this is a wonderful and an educative lecture about centralised and decentralised exchange.
Without wasting much time, I would present my homework based on the questions from the professor.
Definition for Centralised and Decentralised Exchange.
- Decentralised Exchange; The word exchange in the crypto world means to trade. As we all know, tradings involve two or multiple parties. I mean it involves buyer or buyers and a seller or sellers. In Decentralised Exchanges, tradings are only between the two parties(the buyer and the seller). Decentralised exchange is only done by the trader and no third party or any middle man whatsoever.
On the decentralised exchange platforms, there are no rules governing any tradings and no fee involved in transactions which makes it very easy and friendly to use. In this kind of exchange, everything is controlled by the person (the trader).
- Centralised Exchange; Unlike the decentralised exchange, the Centralised Exchange is systematic. The Centralised Exchange follows principles and rules during tradings. Rules involved cannot be violated on such platforms. These type of Exchange is involves a third party. Thus a middleman is involved in the tradings. Centralised Exchanges is managed and controlled by a company or and organisation, hence any misunderstanding on the platform can be communicated.
A typical example is the Binance. Its one of the most popular Centralised Exchange platform excepted worldwide currently.
Difference Between Decentralised Exchange and Centralised Exchange.
The difference between the Centralised and decentralised exchange are based on certain factors.
Verification ; In the Centralised Exchange, identification verification is recommended before a user can use the platform fully. Whereas in the decentralised exchange, no verification is needed and hence, a user can create multiple accounts of his or her choice.
Security ; In the Centralised Exchange, since the platform is controlled by an organisation or a company, all users are connected to one server and for that reason, if anything happens to the server it can cause problems. The server can even be hacked. Whereas in the decentralised exchange, its not controlled by any particular server. Which makes security in the decentralised better.
Transactions fee ; Certainly there are fees involved in both platforms. But in the Centralised Exchange platforms, the fees involved are relatively higher compared to thw decentralised exchange.
Middle man ; As we already know, the Centralised requires a third party to complete the trade wheres in the decentralised exchange, no third is needed. Tradings are done by traders only.
Best Centralised Exchange 2021
Currently binance is the best Centralised Exchange I know. I think binance is the best currently based on some facts ive realised myself on this platform. Talking about the binance security, although we all know that the centralised exchange has lesser security compared to the decentralised exchange, Binance has very high security level. I've never encounter any problem concerning binance.
my verified account
Talking about the user interface, binance has a very friendly interface which doesn't need someone to teach you to understand. Binance transactions fee is relatively less as compared to other Centralised Exchange. That's one of the major reason I choose binance over any exchange platforms.
As required from the professor @yousafharoonkhan, we are to talk about two best Centralised Exchange we know. But unfortunately, I am used to only one (binance). Am yet to explore more on the other Centralised Exchange to know more about the others.
However, from the lecture from @yousafharoonkhan, Coinbase is also one of the best Centralised Exchange. Very similar to binance.
step by step way to install metamask wallet
- Get the app from appstore
- open the app after downloading
- click on "create a new wallet"
- type your password and confirm
- click on "start"
- afterwards write down all the words down and click "continue"
- type all the words in as required and click "complete backup"
- click on "done" from thw next screen that appers
- read the instructions and click on "I agree"
- your account is created
This is how to install Metamask
How to use uniswap
- visit the uniswap website link
- click on "connect wallet"
- select metamask and link the wallet
- click on conect to connect wallet
- confirm if its connected
- go back to uniswap and swap any coin of your choice
- here we choose ETH and AMP
Enter amount to swap
To conclude,
I still think both the Centralised and decentralised exchange are both good to use. Looking at how easy uniswap swap and binance is, both platforms are good exchange platforms for tradings.
First respected student Thank you very much for taking participate in Steemit Crypto Academy Season 2, Week 3 course class..
i could not see your swap of any coin after connecting with uniswap
grade : 6
Thanks very much for the feedback