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.

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Explain in your own words what an Exchange is.

The word exchange means to give something and collect another thing in return.

In cryptocurrency exchange means given out our digital currency to collect flat money or another currency in return.

In exchange of digital currency the seller will specify the quantity he wants to sell and she wil get either Ethereum or Tron in return.

Differences between a Wallet and an Exchange.

Wallet is a software in which digital currency is stored and saved for long time.
Wallet has keys like public and private keys to protect the wallet from hackers.

On the other hand exchange is a process of converting our currency to flat money,it helps in buying and selling of cryptocurrency.

Mention the advantages and disadvantages of DEX and CEX.

Advantage of DEX (Decentralized Cryptocurrency Exchange)

• It independent.
• It doesn't share data information.
• It doesn't require personal information like phone number,email address or any identity proof.
• It requires lower fees.
• It protects the investors from false trading.

Disadvantages of DEX

• The traders are unidentified because of non exposure of data informations and this makes it difficult for traders to track records of transactions.
• It doesn't attract new customers.

Advantage of CEX

• Personal Informations gives easy access to create personal accounts and trade.

• It gives license and trust because its services run under the control of government.

• The transparency attracts customers because location of traders are made available.

• It gives opportunity to build relationships.

Disadvantages of CEX

• There is no security like in DEX because of its transparency.
• It demands higher fees for transactions.
• The wallets and everything are under control.
• High hacking risk.

Have you used an Exchange before? tell us about your experience.

I have never used exchange of any sort,
but as a newbie i am ready to learn thats why i love participating in cryptoacademy task in other to gain more knowledge about cryptocurrency

Thank you @imagen