Hello, esteemed Steemians. I appreciate the privilege of being here at this moment to talk about Cryptocurrency Exchanges and Cryptocurrency Market Capitalization after attending the lecture presented by the crypto professor
@gbenga. It's indeed a great lecture and I perfectly understood all discussed in the context. With no further delay, I will be doing justice to the task given.
Introduction
Before proceeding into the context properly, it is important to understand what crypto wallet is all about. The understanding of what crypto wallet is all about would give a solid foundation of what I want to talk about in this context.
Cryptocurrency wallet: A cryptocurrency wallet can be defined as a device, be it a physical medium, program or service that is used to save keys; private/public keys for cryptocurrency transactions. Crypto wallet also offers encrypting and/or signing information. We have two different types of crypto wallet which is Hot and Cold wallets. The two crypto wallet types will be discussed as this context progresses.
Hot Cryptocurrency Wallet
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This is the type of crypto wallet that operates mainly online. The best of this type of wallet are the decentralized ones like the one called Exodus.
Advantages of Hot Cryptocurrency Wallet
It's a secure means of storing cryptocurrency assets.
No risk of downloading viruses as it's placed online and not using a drive as its prime mover.
Easily accessible at any time of the day.
Just as the advantages attached to the use Hot crypto wallets are worth it, also there are some disadvantages of it to be considered.
Disadvantages of Hot Cryptocurrency Wallet
Hot crypto wallets are susceptible to hacking. Hackers on the internet tend to get the keys of Hot crypto wallets through what is called PHISHING.
They run on centralized servers which can cause the alteration of one's asset at any point in time.
Cold Crypto Wallet
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Cold storage
Cold crypto wallets are the type wallets that operates offline. Assets are saved on devices like pen drive which can be accessed easily through a computer at will without the risk of exposing one's key to potential hackers.
Advantages of Cold Crypto Wallet
It's secure to keep assets in.
Not susceptible to hackers online since the owner keep it on a local device.
Easily accessible for users by simply connecting it to the computer.
Disadvantages of Cold Crypto Wallet
It is the least secure means of saving crypto assets.
There is a risk of downloading viruses which can corrupt the device the assets are saved on.
There is a high risk of loosing one's asset when the computer goes off without backup.
Having talked extensively on what crypto wallet is all about, we would proceed to discuss what crypto exchange is and how it works.
Cryptocurrency Exchange
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Cryptocurrency exchange is a platform that offer the services of exchanging a cryptocurrency for the other or exchanging cryptocurrency for fiat currency. There are a lot of crypto exchange benefits and I will be talking about some of them. Example of it is Binance
Crypto exchange allows the trading of a cryptocurrency for another.
Crypto exchange help one to maximise profits through trading as a user can choose to trade a cryptocurrency with the aim of making good profits.
Minimal transaction fees.
Cons of Cryptocurrency Exchange
Crypto exchanges often comes with limited payment methods.
There is a risk of hacking.
It often requires KYC as many people shy away from verifying their identity.
I've been able to talk extensively on both crypto wallets and crypto exchanges, and it's time to answer the question that ask where would I prefer to store my crypto assets.
Will You Keep Your Crypto Assets in a Wallet or on an Exchange?
Why I will keep my Crypto in an Exchange
In response to the above question, I will prefer to put my crypto assets in an exchange. One of the reasons I am in possession of cryptocurrencies is solely because I want to make profit from it, keeping a crypto asset in a crypto wallet comes with little profits unlike an exchange. The reasons why I choose to keep my crypto assets in an exchange are as follows;
Checking the market price easily to enhance my decision on when to buy or sell a particular crypto.
Unlimited trading to maximize profits.
Real-time exchange rates.
Navigating through a large number of cryptocurrencies to add to my portfolio.
Market price of different cryptos shown such that I can practice HODL for some coins and expect bigger output in the soonest time.
I'm glad to have come this far and believed I have done justice to this lesson. Thanks to crypto professor
@gbenga for his lecture. I look forward to learning more from the crypto professors @steemitcryptoacademy. Thanks to
@steemitblog for creating this channel.
Special regards;
Cc: @steemcurator01
Cc: @steemcurator02
Cc: @steemitblog
Cc: @gbenga
Written by; @fredquantum
