Crypto Academy Week 2 Homework Post for [gbenga]

Hi Friends!

Task Given By The Professor @gbenga (Nigeria)

(Would you keep your crypto assets in a wallet or on an exchange? So make a post about why you would like to put your assets on top of the rest)

What is an Exchange?

An exchange is the place where cryptocurrnceies are exchanged with other fiat coins which are listed in that exchange.

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1. Decenterlized exchanges;
2. Centerlized exchanges;

Decenterlizes cryptocurrency exchange:

After the Mount Gox hack, which caused a loss of funds, a decentralized exchange took place. The exchange of pears for pears by exchange requires pears of coins without intermediaries. The first set of decentralized exchanges was Omes Go and Bit Shares, founded in 2013. For a broker at any time.

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This type of interconnection is not linked to any paradoxes or tomaders in 2020. AMM uses a group of intelligent contracts to determine accuracy. To guarantee Mardado's tolerance, implement concessions so that customers have ten minutes to activate the business and get discounts on transaction rates. Exchanges that use automated merchant merchants (AMMs) include Anisope, Sushi Soup and Caber Networks, and configuration cartridges, making it easier to use these interconnected cartridges with Meta-Mask.

Centerlized cryptocurrency exchange:

Centralized exchanges are the most recognized exchanges in the cryptocurrency exchange business. These exchanges are run by companies. With the central exchange, there is a third party that traders must trust for assets.

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When merchants deposit funds with the central exchange, the merchant does not receive a token instead, thus issuing a similar amount that represent the asset to the merchant. Traders then trade IOUs on exchanges, but when these exchanges are transferred to an external wallet, these IOUs become real assets. Most centerlized exchanges follow government regulations and require a KYC before consumers can trade or increase trade limits. Here are examples of top exchanges include Poloneix, Binance, Bittrex, Houbi and others.

Market Capitalization:

I think you have to discuss the word market capitalization with the stock markets, the same applies to the crypto and crypto markets. There are many coins and cryptocurrency projects and each of these projects has price. Knowing the market capitalization of a coin helps estimate the total asset value of the cryptocurrency now and in the future.

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You should understand that the charm of cryptocurrency is the fact that it is a relatively new business and not everyone has started investing in it, which means that this industry can reach a total market capitalization in the hundreds of trillions. Anyone can use cryptocurrency market capitalization to show market trends.

A crypto wallet is a software program designed to intentionally store "send "and "receive" cryptocurrencies. Crypto Wallet includes private keys and address keys. So keep the private keys safe. There are many cruypto wallets, including atomic wallets, blockchain wallets etc. These are just few of the ones I use now, but there are many more that people use.

Two Kinds of Wallets:

Some are offline wallets, for example Ledger X and Ledger S Offline wallets can also be stored on external hard drives, flash drives and kept offline.

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Some are online wallets that are used to store crypto assets. However, they are quite risky. The owners are often the target of phishing sites. Even on a PC can be used as a channel to hack into your computer system and obtain your private keys. Therefore, it is safer to keep digital assets and private keys offline as much as possible.

Exchanges on the other hand, are used to "buy" and "sell" crypto assets. These arose after the introduction of (Bitcoin). People need an easy way to trade their cryptocurrencies and this has led to exchanges. They offer instant exchange transactions that involve the buying and selling of cryptocurrencies. There are many exchanges like Binance, Kraken, Phoneix, Bittrex, etc.

I compare exchanges with bank services. They hold your assets in your accounts. Although they have wallets on the exchanges, they are the ones that hold your private keys and therefore have direct access to your funds.
Crypto assets in a crypto wallet are much more secure than goods in exchange. The exchanges have a bad history of hacking, like the bad scenario that happened in the M.Gox days. Storing my cryptocurrencies in a crypto wallet gives me full control over my assets and thus makes it more secure than relying on exchanges that could be attacked by hackers.

Storage for long term crypto assets:

Offline wallets are great for long term storage of any coin. It is not advisable to put a large amount of your corrupt assets on the exchanges. Better to keep them in a offline wallet, especially if you do not have plans to use them.

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Convenience:

Placing your crypto assets in a crypto wallet makes it easier for you to access your funds through an exchange, rather than simply accessing them at any time. If you want to do a crypto transaction in some places where they accept Bitcoins as means of exchanging goods and services, it is easier for you to easily access their crypto assets by transaction right there.

I prefer to store my crypto assets in crypto wallets rather than an exchanges.

Special Mentions:
@gbenga

Spacial Thanks:
@steemcurator01
@steemcurator02
@steemcurator03
@steemcurator04

Best Regards:
@azamrai