in this particular task we would be looking at exchanges and the two major forms while comparing it to wallet in this task . so we have the question below:

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.

WHAT IS AN EXCHANGE?

An exchange is a virtual market place where buying and selling takes place between individuals. What is sold there is not physical goods like food stuffs or stuffs like that but here we see the buying and selling of crypto currency for either another cryptocurrency or for fiat money. Like the traditional physical market where we see value of goods depend on demand and supply, the same applies here too in the sense that these cryptocurrency are sold at a value depending on their supply and demand.

The world keep revolving with exchanges not only being a place for buying and selling of fiat and cryptocurrency as of now , some exchanges provide a wallet for storing these cryptocurrency. I said some cause not all perform this work and we would understand this when i explain the types of exchanges.

In essence, an exchange is a virtual place where buying and selling of fiat and cryptocurrency takes place where some also provide wallet for storing these assets and they also allow the use of different types of cards such as debit cards and credit cards to buy fiat tokens and cryptocurrency

How does an exchange perform its work effectively ?

I am going to be using binance to show this example. For buying and selling to take place , one has the option of buying at what is known as current market price or buying and selling at another price using what is known as limit order .

CURRENT MARKET PRICE ORDER

As we can see above, at current market order, one is using the current pricer in the market to trade and this is indicated when one ones to execute using this order and this applies for sell order too.

LIMIT ORDER

Here one doesnt wish to buy or sell at current market price so he or she puts a price for the order to be triggered later either for the buy or sell

DIFFERENCE BETWEEN EXCHANGE AND WALLETS

WALLET	EXCHANGE
Its main usage is storing of crypto assets	Buying and selling takes place here
It has two types: cold and hot wallets	It has two types:centralized and decentralized wallets.
Examples:trust wallet and safepal	Examples:binance,kucoin

ADVANATGES AND DISADVANTAGES OF DEX AND CEX

There are two types of exchanges which are centralized exchanges (CEX) and decentralized exchanges(DEX), before we talk about the advanatges and disadvanatges each, lets talk about what they are each.

CENTRALIZED EXCHANGE

In this type of exchnage, the buying and selling of crypocurrency an fiat is under the control of a company, in the sense that the buying and selling actitvtity is monitored by a company. Thye unique thing about the centralize exchange is that it is the only type of exchange that allows one to make use of his or her debut and credit cards in buying and selling too. Examples of such exchanges are binance,huobi,kucoin,etc

ADVANTAGES

1.They allow the use of debit cards
2.Transaction is faster here
3.There is Anonymity
4,High trading volume

DISADVANTAGES

1.Since it is under the control of a company, we can see maipulation of data
2.It is riskier than decentralized cause the copany data can always be hacked and comproised
3Limited number of tokens are seen in centralized exchanges

DECENTRALIZED EXCHANGE

This is the opposite of what we discussed above, here there isno company wathcing over your transaction in any way . Here your transaction and detaiolsis kept secret and another thing here is that there is no need for particulars when reistering on decentralized exchnages like centralized exchange so as to enjoy the full feature of the exchange

ADVANTAGES

1.There is no need to bring documents
2.Low risk cause these exchanges are built on the blockchain
3.Larger number of tokens are traded here

DISADVANATGES

1.One cant use debit cards here
2.Speed of transaction is low
3.Low trading volume

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

I have used some exchanges but my favoriute is the popular binance. The currebt biggest exchange in the whole world boasting about $28,476,201,819 trading volue as of time i am writting this post. This is a centralized exchange and i have alos used the decentralized counterpart which is pancakeswap and honestly, i love using centralized exchnage cause of the ease in using it and also they dont ask for constant fees before a trsanction goes throughg. The major standout thing about decentralized that i love is the fact they conatin larger amount of tokens

CONCLUSION

Exchanges are a big key part of trading which enables one to carry out his or her buying and selling of asset be it centralized and decentralized exchanges. They are very iportant for this purpose.