Steemit Crypto Academy | My Home Work Submission Task For Professor @allbert - Season 3
Sourced from the professors lecture
Hey! Welcome to my post today, I'm very much happy to be a student of this wonderful class that gave us the opportunity to learn about Cryptocurrency wallets. It was indeed a nice class, and I appreciate our beloved professor for this great lecture.
If you are reading this content, you might have come across this lecture and may have also benefited from the lecture. In regards to the lecture, we are given a task in terms of Home works to test our brain on what we have learned so far from the lecture, and for this cause, I will be attending the task given by the professor - @allbert.
Indeed, it was a nice class. Alright, continue reading as I will be explaining based on my knowledge for this subject tagged ' A World World Of Wallets and Exchanges'. Below are the given points that I will be discussing in this article.
The Differences In wallets & Exchanges, and The kind of Transactions That Are Meant To Be Carried Out On Each of These Terminologies (Wallets & Exchanges).
Why I Think Crypto Users Should Have More Than One Exchange Account. Get To know My Personal Exchange Account And Why I Choose This Account.
Exchange & Wallets? Which One Do You Prefer?
Let's Get an Exchange & Wallet Account Set! Step By Step With Screenshots.
The aforementioned topics are what I will be discussing in this article. So let's read together as I kick off with the first heading - 'The Differences In wallets & Exchanges, and The kind of Transactions That Are Meant To Be Carried Out On Each of These Terminologies' (Wallets & Exchanges)...
Differences In wallets & Exchanges, and Best Transactions Suitable For Each (Wallets & Exchanges).
When talking about cryptocurrency, it is so important to note that wallets and exchange platforms are great tools that help the digital industry to function accurately, which means without wallets and exchange platforms cryptocurrency would not be existing.
It is no doubt that these two terms are different, and the key discrepancy between this two phrase is - exchanges helps a trader to simplify trading from one crypto coin to another. With an exchange platform you can:
- Easily Convert Fiat Currency to Cryptocurrency
- Buying and Selling Cryptocurrency
- Sending Out Cryptocurrency to Other Wallets
While on the wallet aspect, its main focus is to secure and safe-keep your funds. It gives you full access to your funds, you decide when and where to transfer them to.
Let me bring, for instance, you are having a fiat currency with you in your physical wallets, you control how you manage the fiat, but if you deposit the fiat in a savings account, you lose some controls of spending, as the bank may set a limit to your spending patterns.
This how the wallets works, it doesn't have a marketplace where you trade your crypto assets for fiat. Below are what wallets can serve:
- Access Your Tokens at Anytime
- Hodling Crypto Coin For Short/Long-term
- Secure Your Tokens
- Transferring Cryptos From One Wallet To Another
Suitable Transaction For Each Of This Terms - Wallets & Exchanges
Now, let me briefly talk about the kind of transactions that can be done in wallets and exchange platforms, although I've already given some points that are suitable for each of them. But to a layman's understanding, crypto wallets are a kind of software or sometimes hardware that allows a crypto user to store and retrieve his/her digital assets.
A cryptocurrency wallet can be used to transfer and receive coins. Example: On the 56th birthday of Francisco's dad, Bright wants to transfer money to him and then decides to transfer some bitcoin which has been increasing in value, and fortunately Francisco's dad has a bitcoin wallet. Bright then requested the wallet address, a unique wallet address was given to bright where he then transferred the BTC coin.
After the transaction was authenticated on the blockchain, Francisco's dad became the owner of that asset (BTC coin). But in his wallet he can not sell the coin for fiat, that was when he thought of an exchange platform. This is because the software wallet on his smartphone doesn't have a marketplace for selling coins, it is only used to store, receive and retrieve cryptocurrencies.
So for Francisco's dad to trade his coin for fiat, he then called out to his friend who has an exchange platform where he can trade his coin for fiat currency. Finally, his friend came he sold his Bitcoin to fiat currency, and it happened that where he sold the coin was in Binance exchange - The world-leading exchange platform. Don't worry, in this post I Will also talk about this exchange.
Note: Both Crypto wallets and Exchanges has an already built-in wallet for each coin, and for every coin, a unique address is assigned to them to enable a user to send and receive crypto assets. So in the case of Francisco's dad, his friend provided him with his Bitcoin wallet address from his exchange account. That was how he managed to trade his Bitcoin for fiat.
Although there are some transactions that can be done in the wallet, transactions like, swapping particular crypto to another crypto, and it is usually done in the Dapp section of that wallet. In some wallets like Trust wallet, they have a section for Dapps where you connect your wallet with Dapps and swap coin for another. An example is the Pancakeswap, Uniswap, and lots of them.
One Unique Difference Of this Terms ( Wallets and Exchange)
Centralized & Decentralized Feature. When talking about cryptocurrency, one needs to consider these factors "centralization and decentralization" and also understand, as I have said earlier that crypto would not be existing if there are no wallets for it and exchanges for trading them.
Now, crypto wallets are decentralized, giving their users full access to their tokens by creating what they call "Mnemonic Phrase" also known as private keys, while on the other hand, exchanges are opposite of wallets, making them centralized. They don't create Mnemonic phrases for you, what you do on exchanges is to create a password. Just like our centralized local banks.
So that's that for wallets and exchange, I trust you must have known the kind of transaction suitable for each of these terms and also some basic difference on both.
Why Users Should Have More Than One Exchange Account & Get To Know My Personal Exchange Account.
I have talked about the imperative aspects of exchanges, they play a vital role in the world of cryptocurrency. You know, sometimes we may consider having too many exchange accounts, which some traders may also consider as stress.
But under this heading, I will deliberate on the importance of having more than one exchange account.
You know, I have been trading for more than a year now, and the major importance I have seen as a trader that has more than one exchange account are:
The Service Of a Particular Exchange Does not Affect Their Trade.
It might look strange to your hearing, but that's the truth! Sometimes, some exchanges platform may not be functioning well, it could be in the case of currency pair where a particular coin will not be given your desired currency pair.
Let me use the Steem Backed Dollar (SBD) & Hive Backed Dollar (HBD). These crypto-assets are not listed in most of the exchange platform, and because it is not listed, some traders find it very difficult and stressful to trade them. While this may be a problem for traders that don't have multiple exchange account, it will not be for those that have multiple exchange account.
This is because they have an account with that exchange that trades their favorite crypto assets, and according to Coingecko that SBD & HBD are listed in the following markets:
So traders that has this exchange could just go to them and trade their asset.
Peer to Peer Trading Section.
Some exchange doesn't have a strong p2p trading section for trading their coins locally. The above-mentioned exchanges are good examples of exchanges that don't have a p2p trading section. Some crypto traders might be asking some questions like 'What is the relevancy of the p2p trading section when you can just trade your crypto assets to fiat and then withdraw to your local bank without inconvenience'
That's a nice question, but in some countries like Nigeria where all financial institutions rejected and disconnected crypto-related transactions from their institutions. What it means is that in Nigeria a crypto trader cannot trade his/her crypto assets for fiat currency. This is why a crypto trader should have more than one exchange account.
I am a typical example of this section, I am a Nigerian, and currently, in my country crypto traders can't trade their crypto assets for fiat because of certain limitations in trading crypto. The only method we use is the p2p market section, and as I have said earlier, some exchanges are not too good in p2p.
Exchange platforms like Houbi Global, KuCoin, Localbitcoins are examples of Exchanges that have used and to my experience, their p2p market section is not as strong as the current exchange where I trade coins locally.
Get To know My Personal Exchange Account And Why I Choose This Account.
I've been trading cryptocurrency for almost 2years, and you know very well that as a trader you need to have an account where you trade your coins. For me as a crypto trader, I don't trade on one exchange platform, I have 3 active exchanges where I currently trade my crypto assets. Check them out:
- Binance
- Houbi Global
- Hotbit
The above-mentioned exchanges are my current trading platforms. I will also give reasons why I have selected these ones.
Binance
Binance is a cryptocurrency exchange that is based in hong kong. Today it is seen as the world's leading crypto exchange.
I have no doubts that this exchange platform is the leading exchange because of the following experienced features that I will be explaining below:
- P2P Trading
Among the listed exchanges, Binance is the best for trading peer-to-peer (P2P). Binance has provided this service in a very secure manner with a wide variety of payment options. the P2P market section connects crypto traders (Buyers and Sellers) directly. With peer-to-peer, you can easily trade your coins for fiat, and this is why I have chosen this platform as there is no method for trading our crypto assets for fiat and withdrawing to our local banks. Binance is the most preferred for trading p2p.
- Spot Trading and Margin Trading
This is another reason why have chosen Binance. The exchange has well-simplified spot trading and margin trading. As a user of this exchange, I can attest to this fact. In the spot trading section, you can select based on your experience which interface to trade, it has the classic view which gives you quick access to the market and also allows you to switch to trading pairs of your choice. The other interface which I call the 'Advanced view' allows you to access advanced tools.
- Low Trading Fees & Good Customer Service Support
Every crypto trader must consider these factors before accepting to trade with any exchanging. I have used Binance and I have noticed their low trading fees which are 0.1% transaction fee, this makes it very interesting to me. Check the image below to see the low transaction fee.
The screenshot depicts my recent transactions on Binance spot trading. In the image, I traded 72 USDT for 0.54162 LTC, and the transaction fee was 0.00054162 which is 0.1% if calculated. The same is applied to that of STEEM/BTC, where I traded 174 STEEM for 0.00184266 BTC, you can also see the transaction fee. This is why I have chosen Binance.
Talking about their customer service, this is what every crypto trader should also consider as it involves finance. Binance is an exchange platform is ever ready to hear from their users, I am writing based on experience. Their customer support team is ready to attend to your needs at any time.
The above points are my reasons for choosing Binance exchange. Let me briefly give reasons for my other exchange, but note that Binance is my first exchange where I carry out major trading.
Houbi Global
This is my second exchange account, I have selected this exchange in terms of exploring services like currency pairs. Example: The steem currency that is listed on both Houbi and Binance, but the difference is their currency pair. In Huobi Global, STEEM is paired with USDT which makes it easier for trading.
Although I adopted this method because of the frequent maintenance of STEEM pairs on Binance, on other not to shut trading, I then selected Houbi Global as an alternative for this frequent maintenance on Binance.
Hotbit exchange
Hotbit is another exchange that has gained some stars as a crypto trading company, although it has suffered some cyber-attacks which led to a temporary shutdown. Today, Hotbit is trading with so many developing coins, and this why I selected the exchange.
I am a trader that buys a coin from its tender age and then waits for it to grow. In other to trade my shitcoins, I then selected Hotbit exchange. If you are a crypto trader, and you are trading shitcoins, then I would recommend you to Hotbit Exchange.
Exchange & Wallets? Which One Do You Prefer?
Exchanges and Wallets are really important in the crypto industries. As a crypto trader, You will need them both, as they play a different role in the crypto industry. If you have been following this article from the beginning you will understand what, and how these two parties work.
I would recommend any crypto trader to work with both exchange and wallets. Wallets are very important in the sense that they help a crypto trader that has a long-term investment plan in crypto, so if there's any crypto looking to invest in crypto for a very long-term I would recommend wallets, but for those wanting to trade crypto, then exchange would be best.
But since the question said we should prefer one, then I would be preferring exchange as it also has wallets attached to them. One cannot really hold crypto for a very long term in the exchange except that the trader has built his/her emotion to the extend of not selling their crypto-asset when the volatility is higher.
Let's Get an Exchange & Wallet Account Set! Step By Step With Screenshots.
There are lots of wallets, but for this context, I will using the metamask wallet. If in your smartphone, you don't have the metamask wallet, then follow the followimg steps to download from google playstore.
Step 1.
Visit you google playstore, and search for the wallet by typing its name in the search box of your playstore like this:
After typing the name on the search box, it will now be displayed for you to click and download. In the above, you will follow the red arrow and click on the name of the app as it displays there. If clicked you will be taken to next step where you will download the app like this:
Now , click on install, and it will installed in your smartphone. After the installation, the next step is to get the account ready. Keep reading.
Step 2
As you have downloaded the wallet to your phone. Lets open it now and get the wallet set. Below are images to follow on how to set the second step.
In the image, as I have tagged them A & B. The Picture A is asking you to create a new wallet since you are new to the wallet. If you already had an existing wallet then you will go the other way which is importing wallet. But that's not what we talking about here.
The Picture B will be shown to you after you might have clicked on the first image. Here on the B picture it tells you to input your desired password. Your password most contain at least 6 characters with Uper case, lowercase amd alphanumeric before it will be accepted.
Step 3
After inputting your desired password, you will be taken to next step which we'll see now.
Please don't mind the low quality of image. In this step you will click on start as the arrow is pointing in the picture C, when clicked it will take you to next step which is picture D where you will be asked to store your Mnemonic Keys safely. You are advised to store them offline.
Step 3
After storing your keys, then you will be asked to provide them on the next step.
In this step, the first picture which is the 'picture E' it is demonstrating a short video where you understand what your private looks like, After this step, next step is where you will fix the phrase accordingly and after that, the next step is where you have successfully created your wallet which is the picture F.
Creating An Exchange
For this aspect, I will be using Hotbit.io exchange platform. Hotbit an exchange that has too many shitcoins. To sign-up, you will visit the their platform using Hotbit.io. When clicked you will be taken a platform that looks like the below image.
To create an exchange account with hotbit, you will follow the red arrow as indicated in the image. It is pointing to register. When clicked it will take you to another interface where you will input your credentials like this.
The above image is typical look of how the registration is, just follow the red arrows and fill the form accordingly, after filling.
For hotbit to successfully sign you up, they will send a verification message to your email- example of such email is show below:
So you just copy the code and paste it on the provided space for it. Like this:
After that you click on the sign up, and you will be taken to the next page where you will be asked to login with your registered details. See image below:
When clicked the login button, on the next page you will complete recaptcha, this is to check if you are human. Below is a how to complete the recaptcha.
After the recaptcha you will be taken to your exchange homepage. Now, you have successfully created an exchange account
Conclusion
Regularly confounded – especially by beginner dealers – perhaps the most critical things to learn and comprehend is the distinction between a crypto wallet an exchange While it is genuine both can be utilized as instruments for advanced money in the board, realizing how to recognize one from the other can be a deciding component in your prosperity or disappointment as a financial backer in the digital currency world.
As crypto trader or an investor, choosing both wallets and exchange are really important as they both can store crypto, but it is up to you to decide on which one will serve you better. Here, I would drop my pen, Thank you for your time on this post.
Hello and thanks for participating in the Steemit Crypto Academy season 3.