Crypto Academy Season 3 Beginners' course - Homework Post for Task 5: Centralized and Decentralized Exchanges By @fabiha
Hello Everyone how are you?? I am Fine and hope Fully You all are Also fine..
So i am here With My Second Assigment post and a Homework post for task 5 Which is Assigned by Proffesor @imagen .
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.
Digital currency Exchanges are digital platform that permit their clients to trade advanced resources, either for fiat money or cash or for other cryptocurrencies money. All in all, they are online trade houses where market costs are created that mark the worth of digital forms of money dependent on their organic market.
exchange is defined as to give something and get something Accordingly.
In CryptoCurrency or a Digital Currency Exchange is That Where We can buy or Sell Our Coin
In Crypto Currency Exchange is a Digital Platform Where We Can buy or Sell our products how its possible to Exchange Why We Exchange ?? The Answer is that i have buy Any Crypto the marketcap increases .. in a few days Ago Elon Musk buy a Coin Which is DogeCoin there Will be increase its market So We are thankFul to our investors Who buy coins Continously and we are able to Exchange our coins.
The upstanding fiat-to-crypto trades Exchanges permit you to enter the digital money market without any problem. They are hence passage level trades. In return for giving you a simple access, the value that you can purchase the Bitcoin or other cryptocoin you need to purchase for is frequently significantly higher than the market cost.
How to Exchange Coin?
As you see in the picture Click on Market.
here you can Search your Coin you Want to exchange.
Here you can buy or Sell Your Coin that is Exchange.
Types of Exchanges
There are two types of Exchanges.
(1) Centralized Exchange.
(2) Decentralized Exchange.
(1) Centralized Exchanges
Centralized Exchanges are online Exchnages used to purchase and sell digital currencies, They are the most widely recognized implies that financial backers use to purchase and sell digital money possessions.
In the expression Centralized Exchange, the possibility of centralization mentions the utilization of a centerman or outsider to help go through with exchanges. Purchasers and dealers the same trust this centerman or third party to deal with their resources. This is normal in a Circumference arrangement, where a client confides in the bank to hold their cash.
Many of the centralized exchanges offer fiat-to-crypto trading. This means that you can deposit your money to the exchange and then purchase cryptocurrencies with that money.
Some of the most well-known centralised exchanges are:
• Binance
• Bittrex
• Bitfinex
• Coinbase
• Kraken
I will use Binance for any Exchange.
• Binance
• Bittrex
• Coinbase
• Kraken
Decentralized Exchanges
Decentralized Exchanges Are absolutely inverse to the centralized exchange. A Decentralized exchange do not store funds for its users.This Means that there will be not interfere for any Third party. The Decentralized Exchanges are Impossible to hack.
Among the most popular decentralised exchanges are:
• WavesDex
• Bancor Protocol
• Kyber Network
• EtherDelta
• AirSwap
• Uniswap
Differences between a Wallet and an Exchange.
| Wallet | Exchange |
|---|---|
| A Block Chain Wallet can be defined as any thing Where you Hold the Private Keys. | CryptoCurrencies Exchanges are marketplaces where you can exchange Your Crypto currency for Another CryptoCurrency, By Selling off the previous cryptocurrency you owned, at a present or selected market price to by another cryptocurrency that you desire to own. |
| Examples of a Block Chain Wallet includes: exodus.io, jaxx.io, wavesplatform.com, blockchain.com, myetherwallet.com etc | Examples of cryptocurrency exchanges are: binance.com, bittrex, coinbase, poloniex,huobi-pro.com etc |
| Wallets can be used for storage of cryptocurrencies/Digital Assets. | Exchanges can be used for cryptocurrencies tradings' and they can also be used for holding cryptocurrencies listed by that exchange. |
| Wallets has high security and privacy, It has totally Decentrallized, you own your private keys and the blocks of your data transactions are not processed by only one server. | Exchange is not 100% Decentralized |
| You can not trade on a wallet | You trade on a exchange |
| Coins are more safer in a wallet and they are not subjected to being delisted from the wallet by any exchange rules or terms and conditions. | Exchanges are Not Safer but you can transfer your CryptoCurrencies to an exchange where you will be able to conduct your cryptocurrencies trading. |
Mention the advantages and disadvantages of DEX and CEX.
Advantages of Centralization:
1)Strong co-ordination is the big advantage of it. It causes unity and there's no independent decision by lower managers.
2)You don't have to need any special training so it reduces the cost.
3)It is more easy to get in it as theres's low chance of rejection and fast decision occurs on changeable market. So it causes direct execution of decisions.
4)Well it is changeable to business environment whenever you want and it makes new challenges and opportunties for you.
Disadvantages of Centralization:
1)Keep in mind it's slow operation and focusing on all activities it caues Heavy work load and overdurden on the top management.
2)Due to the underutilization of power and improper resouce utilization it causes the misuse of power.
3)It also effects the decisions as no suggestion from lower management and due to no expert to guide can let to wrong decision.
4)Due to managerial differences, low management don't suggest their innovative ideas and top management relays on their own ideas, so it causes no innovation.
Advantages of Decentralization:
1)It reduces the work load of top level officers and enables them to concentrate on issues like policy formulation and other major problems.
2)It increses administrative efficiency by reducing delays and encourging faster action.
3)It makes the organization/administration more responsive as the field units act with the knowledge of local condition and requirements.
4)It makes possible experimentation in decision making.
5)It reduces the problem of communication.
Disadvantages of Decentralization:
1)It makes the administration expensive due to duplication of work and lack of centralized house keeping services.
2)It increases administrative abuses like corruption etc.
3)It complicates coordination as the degree of control is less.
4)It weakens the national progress in administration by breeding localism.
5)It makes communication among varoius level difficult.
Have you used an Exchange before? tell us about your experience.
I have used Decentralized Exchange Only one time So i Dont have So much Experience because i have buy Some Coins in binance last 2-3 months Ago And i will get A loss So What Could i Say lol.. its my bad luck So i can not talk Much about this..
So guys my this Assigment post Should be End i want to thankFul For professor @imagen For this great Assigment.
*I Will try to Explain as much as more my knowledge thankyou*
Special Mentions:
@steemitblog
@imagen
@awesononso
Hello @fabiha, I’m glad you participated in the 5th Task of the Beginner’s class at the Steemit Crypto Academy. Your grades in this task are as follows:
You were talking about Decentralisation and Centralization.
Please always pay attention to understand the lesson and the question before performing the tasks.
Thank you for submitting your homework task 5. We hope to see the rest of your submissions.