Hello friends, I'm here to participate in this week's homework task by Prof @yousafharoonkhan

Source

QUESTION1: Write the definition of decentralized and centralized Exchange in your own words. (Definition should cover exchanges,not system) Only explain in your own words, after understand the exchanges.

RESPONSES

A Centralized Exchange is a platform which helps in mediating between the traders or investors and a newly launched project by a firm in the exchange bearing in mind the set rules and regulations biding all parties. This is to say, there is a third party that helps in facilitating the activities of all that happens in the platform which is the Exchange platform itself.
Key Highlights About the Centralized Exchange:

• There are strict regulations which all parties in the exchange adhere to before full activities are allowed
• There is KYC documentation which prepares the user and its verification process before exchange gives an access.
• There is a central server where all commands are received and given.

A Decentralized Exchange on the other hand operates in the opposite. There are several servers/nodes which removes the unitary and single server command unit seen in the centralized exchange. There are no mediating parties between traders and projects in the exchange rather traders/investors have direct access to engage the exchange without having to pass through rigorous documentation and verification process.
Key Highlights About the Decentralized Exchange:

• There are no one command unit controlling the affairs of the exchange
• It removes completely the use of third party mediators in the exchange
• It does not require KYC documentation or strict regulatory controls

QUESTION2: Explain in your own words the difference between decentralization and centralization exchanges (answer should relate exchanges , not over all system... (answer must be written in your own words , copy and paste or from other source copy will be not accepted)

RESPONSES

• In the centralized exchange, there is an interplay in the exchange where the middlemen mediator are very active and determines the daily activities between the investor and the project in the exchange. For the decentralized system, there are interplay between third party actives. It removes the existence of middlemen in the exchange.
• It is usually easy to use and operate in the centralized exchange unlike the complexity seen in the decentralized exchanges.
• Decentralized platforms are known for its high security and safety of assets guaranteed hence the merits of running a decentralized blockchain. The centralized platforms are prone to incessant hacks and attacks which causes exchange failure and loss of assets.
• Transaction fees are seen to be high while using the centralized exchanges unlike what is obtainable in the decentralized exchanges where there are no fees charged on transactions.
• Centralized exchanges are known with its high liquidity and volume of transactions that passes through it. This may be connected to the ease of accessing this platform quickly and the existing traditional financial system with a larger sub-base already. This is the opposite when compared to the decentralized exchanges.

QUESTION3:WRITE ABOUT ANY 2 BEST CENTRALIZED EXCHANGES OF 2021. WHY ARE THEY BEST IN FRONT OF YOU? (SHOW SCREENSHOTS OF YOUR VERIFIED PROFILE TO MAKE VERIFY THAT YOU ARE REALLY USING THEM, OR ALSO SHARE ANY ONE TRADE THAT YOU MADE IN LAST 24 HOURS)

RESPONSES

BINANCE:
Though not an active user of the Binance, Binance is known to be a leading world class exchange platform with several accolades to itself for remaining at the top position. It is has a capitalization worth over 3 billion USD with over a millions of transactions known to pass through its exchange every second. It has a wide range of listed assets in its exchange and with vast asset paring which makes it investor friendly while selecting trades to pair or during spot trading. It also have series of other investor friendly packages that gives investors passive income and access to farm on new projects introduced in the exchange.

(Binance last trading history)

HUOBI:
The Huobi exchange is another bigger exchange platform that have in its list so many of the assets and pairs in its platform. Huobi is know for its best practices as regards security applications implored in waging hackers access into the exchange. Just as Binance lost over 7,000 BTC in 2019 which a huge loss to the exchange, Huobi has continue to improve on this by going further to implement User protection fund where profits can be saved more securely against invaders and wailers. They are also saddled with the expertise seen in customer care relationship management with proficiency in feedback resolution.
I have not been an ardent user of this platform (though used it to transfer my steem and Trx) but I know with what i have read about its capacities in luring institutional bodies to its exchanges for mouth watering investment, they can be trusted reasonably.

QUESTION4:INSTALL METAMASK , AND SHARE STEP BY STEP SCREENSHOT, (PRACTICE STEP BY STEP)

I will be demonstrating with a screenshot here to present to us step by step on how to install a MetaMask.

• To download and install the MetaMask, go through the playstore or Appstore
• click on the "get started" icon

• the next page brings out three (3) options. You're either to use the seed phrase to continue the process which is for existing accounts, or by the use of MetaMask extension or by the "create a new wallet". You're to click on create a new wallet to continue.

• the next option is for password authentication. You're required to input and password and confirm. Then click on the create password key.

• the next stage is to secure your wallet. Click on start to continue the process.

• securing your wallet entails that we use the seed phrase. You're to keep this seed phrase very safe void of third party sight.

• After this , you will be told congratulations. Click on done so as to continue with the MetaMask interface now.

QUESTION 5: HOW TO USE UNISWAP EXCHANGE, AND SWAP/BUY OR SWAP/SELL ANY COIN (PRACTICE STEP BY STEP).

How I used my Uniswap after downloading the MetaMask wallet.

• I logged into the Uniswap

• click on the "Use Uniswap" icon.

• Click on "connect wallet" icon.

• now click on wallet connect then on connect. This is where the MetaMask wallet can be found.

• this now launches you back into the MetaMask wallet which shows synchronization has been completed to enable you continue your trade.
• Click on the swap icon now.

• the displayed assets are the Available assets for the investors. Click on start swapping icon to start up the process.

• I will be swapping 10ETH to LUSD. I will have to choose my assets and then click on GET QUOTES icon.

• clicking on get quotes enables to the system to fetch the best swapping deal for you. And this is seen to last for 40seconds before expiration.

While centralized exchanges continue to wax stronger in its sub-base which means and increment in its trade flows, liquidity and volume of transaction, there's every need to ensure security of assets in platform. Decentralized exchange needs all the hypento make it also conversant like the traditional financial system to enable it match Centralized exchanges.

Thank you Prof @yousafharoonkhan, this is my entry for this homework task.