Crypto Academy Season 3 Beginners' course – HOMEWORK: Task 5: Dex, Cex, Popular Exchanges and Trading Cryptos for Professor @imagen by @dilchamo

Homework Task.

You must choose and do only 1 of the following tasks: To participate in this class you must have completed Newcomers Community Achievement 04.

1-) Choose any of the following exchanges and develop a basic guide on how to use it, indicating whether it is decentralised or centralised.

• Huobi
• KuCoin
• Waves Dex

2-) Can cryptocurrencies and exchanges be regulated? How do regulations affect the crypto world? Name some countries with regulations.

3-) 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.

I have selected question number 3 to answer for homework task 5.

3-) 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.

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In simple terms exchange can be defined as all buying and selling transactions. It is a digital currency exchange where users deal with crypto currencies. In digital platform there are online companies which generate market prices according to crypto currencies according to the supply and demand. Digital currency exchanges allow exchange digital currency into fiat money or digital assets. Exchange is a popular transaction chain in modern world. Exchange is a 24 hour service which operates for its users. Even though the exchange is done continuously the buyers and sellers are anonymous. There are exchange rates which are not fixed and the rates are decided by the sellers so that buyers can decide whom to select as a seller.

Differences between a Wallet and an Exchange.

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Exchange is easy and fast. It cost low rates and refrain from many difficulties. In exchange process user can get digital assets or fiat money. Exchanges can be done being from anywhere in the world and also can do transactions at any time. Exchange has low rates compared to traditional methods. The purchases from exchanges are done using credit or debit cards or virtual wallets like Pay pal. In Exchange the user doesn’t have the full control on their wallets because the central authority implies the rules and regulations to operate exchange.

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A virtual wallet is a program generated to store crypto currencies. Users can exchange crypto currencies stored in the wallets. In modern world people use virtual wallets to perform transactions as they have already felt difficulties in performing traditional transaction methods. Transactions from virtual wallets are faster and easier. Virtual wallets are secure because traditional transactions meet different malfunctions. Wallets can store the crypto currencies that you purchase. In wallets the private key is not going to the hands of a central authority which the privacy of the owner is secured. The owner has the complete control of his/her wallet.

Mention the advantages and disadvantages of DEX and CEX.

There are two main types of Exchanges. They are Centralized Crypto currency Exchange and Decentralized Crypto currency Exchange.

Centralized exchanges are conducted in the traditional way. It has a central authority to implement rules and regulations. The owner of the company has the full control on maintenance of the centralized exchanges. In a centralized exchange the user place the total trust on the central authority. The authority applies the ways and means of exchange methods. The exchange process in CEX is easy and quicker to perform. The transactions are faster and many people have used to practice this CEX method for exchanges.

The demerit of CEX is the control is not in the hands of users. That can be a treat if the transaction doesn’t perform well.
Decentralized exchanges are not operated and maintained by a single owner or a central authority. The users have the authority to perform exchanges. There are no intermediaries for the exchange process. Decentralized exchanges do not need its user’s personal information to perform the exchanges. DEX does exchanges for users who are registered on its platforms.

There is no government intervention for decentralized exchanges. Decentralized exchanges don’t cost high fees from its registered users. DEX is a high in security. Any user documentations are not needed to perform exchanges.
There are some demerits like slow in functioning, difficult to perform for beginners and it has limited functionality.
DEX and CEX have their own characteristics which includes all merits and demerits. It is up to the user to select the best matching method for the user.

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

There are many famous exchanges. Among them I have the experience of using BINANCE centralized exchange method. The process in Binance is easy to perform.

First I logged into Binance using my E mail address and password. Mainly there are four types of wallets.

Among them I use P2P wallet to transfer my personal money to Binance exchange. Actually I used LKR (SriLanka Rupees) to exchange as USDT.

Then I transferred those USDT fiat from P2P to Spot wallet.

Then I can exchange my USDT to Steem from spot wallet by doing a simple trading.
As there is no option to exchange USDT to Steem directly I have to Exchange USDT to BTC first.

Then I can convert those BTC to steem.

Then I go to spot wallet back and select steem coin.

Then I can select withdrawal option to transfer my steem to my Steemit wallet.

If I want to transfer my steem to Binance:-

I can log into my steem wallet and click on transfer on the steem dropdown list. Then I enter the address and memo and click “ok”. Then the steem will transfer to Binance.

Those are my experiences with Binance and I have simply demonstrated the way how I usually do it.

This is the end of my Homework Task 5 for the beginner’s course. Thank you Professor @imagen for giving un knowledge about Exchanges and DEX and CEX. Thank you for reading my post.