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.

EXCHANGE

An Exchange is a virtual house that enables the buying and selling of our virtual currencies, making use of our funds in physical money or through our cryptocurrencies and tokens, using the different means offered by the current market on demand and supply. In a nutshell Digital Currency Exchange (DCE) online platform makes it possible for their users to exchange digital assets based on the value of the cryptocurrency’s generated.

These online exchange platforms allowed in recent years the massive use of cryptocurrencies making it possible for exchanges to take place without major difficulties, between real money and cryptocurrencies or vice versa globally and with relatively cheaper cost in a very attractive way than other traditional methods.

There are great innovations in their services that allows the storage of Cryptos in online Wallets, the buying of virtual currencies with Credit Cards, Debit Cards, Bank transfers, Paypals, Peer-to-Peer (P2P) and many more other ways just to generate money.

DIFFERENCES BETWEEN A WALLET AND AN EXCHANGE

A Wallet is where Cryptocurrencies are stored. All the purchases of online currencies with credit cards, debit cards, Peer-to-Peer or bank transfers are paid into a Wallet.

An Exchange is an online house where market prices are generated that mark the value of cryptocurrencies based on their supply and demand. It allows transactions from other houses and work with various networks in the crypto space for instance Tron, Ethereum and BSC.

These 2 are different in their functions. A Wallet is used for storing the Cryptocurrencies while the Exchange is the online house for generating the Cryptocurrencies.

ADVANTAGES OF DEX AND CEX

ADVANTAGES OF DECENTRALISED EXCHANGES (DEX)

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• Decentralised Exchanges (DEX) are not under the supervision of any single authority as their operation is not by just one company while making use of the blockchain technology network.

• There are no risks involved in a Decentralised Exchange because it does not retain the funds, location or information of its users, and only serves as a means for transacting orders that are registered on its platforms.

• There are no middle men hence there is sustainability and it is difficult to hack the account.

• It works with time and speed hence transactions are faster.

DISADVANTAGES OF DECENTRALISED EXCHANGES (DEX)

• Decentralised Exchanges transactions are lower

• It does not allow the use of a physical cash but accepts only cryptocurrency.

• There is no physical address where someone can locate them in case there is an issue that may arise during transactions, instead the users identities are hidden.

ADVANTAGES OF CENTRALISED EXCHANGE (CEX)

• The major advantage of a Centralised Exchange is that it is owned by the company that operates it and has full control over all the transactions happening on the platform.

• There is a higher volume of transactions and liquidity is high with a Centralised Exchange as assets can be quickly converted to cash.

• You can buy cryptocurrency with cash and other available means like credit cards, debit cards, bank transfers and PayPal.

DISADVANTAGES OF A CENTRALISED EXCHANGE (CEX)

• Those involved in this platform do not have any access to the private keys in their account, they place all their trust under the exchange operators and their transactions are made through the approval of the central authority.

• A Centralised Exchange transaction time is limited.

• User’s personal details like address, pictures, bank accounts, and other vital identity documents, are freely left in the hands of the operators.

• Accounts can easily be hacked within the system of a Centralised Exchange.

MY EXPERIENCES WITH THE EXCHANGES USED

I have a Binance account and I often use it to do transfers, buy and sell my USDT and convert to Fiat (cash) in my local currency. Few weeks ago, I transferred $100 dollars from my Binance account to buy an Etherconnect Token of EIFI for the new coin called ECC. Since I bought this coin it has been yielding profit for me on a daily basis from the total staked USD on a 10% monthly yield. I am benefiting from it already with high hopes of more income in the future.

Also I am currently using the RoyalQ Robot hired to trade from my Binance account daily and make profits. As the Robot buys the coin daily, it does not make losses rather it waits for the right time when the market is stable to sell so it can make profits and return profit made to my Binance account. I have benefited from this online trading as I have cashed out a profit of $50 dollars from the Robot’s trading using the Artificial Intelligence. Profits made here are determined by the network an individual built as a Team work is involved and also the amount invested.

I am very happy using this platforms and being in the Crypto space.

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