Steemit Crypto Academy Season 5 Beginners' course - Task 7: Dex, Cex, Popular Exchanges and Trading Cryptos; Home work task by @habdallah

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 will be tackling the third question which is,

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.

An exchange is a market place where commodities and other financial related financial tools are bought or sold.
But in the crypto world, an exchange is also a market place or platform where cryptocurrencies are bought, sold and also being exchanged for other cryptocurrencies or for other digital assets or fiat money.
Exchange is mainly used for a fair transaction between buyers and sellers.

In the cryptocurrency blockchain, exchanges requires the use of a wallet. Wich is either (Centralized exchange CEX or decentralized exchange DEX) wallet.

Centralized exchange.

A centralized exchange is a type of exchange which is owned and run by a central unit or body. The central unit or body takes controls of the activities of a user.
The private key of a user is being controlled by the central unit. Therefore not rendering the user a full control of his account. This way of management is not secured and can be tampered by hackers.
In registering or creating a centralized exchange account, some basic information about you is required by the exchange. Some of these informations required is your location, where you live, s, a photograph of your self and an identity documents. Some popular centralised exchanges are Binance,Roqqu,Kraken, Coinbase,Huobi exchanges.

Decentralized exchange.

Decentralized exchanges is a blockchain exchange which is not operated by any central body or unit. Which is to say they are not under any supervision. They make use of the blockchain technology.
In the decentralized exchange, there is no need for the requirements of personal information (Anonymity) of the user.

Decentralised exchanges evolved as a solution to the problems of the traditional way of exchanges. Their operation is very similar to that of the latter, but they operate in a decentralised manner, which means that there is no any central body governing it.
It is a (peer-to-peer) market that allows a buyer to deal with a seller directly without the interference of a third-party.
Here are some popular decentralized exchanges are Bancor Protocol, Kyber Network,Uniswap and many others.

Differences between a wallet and an exchange.

I will be putting tge differences in a tabular form below.

WALLET	EXCHANGE
A wallet is usee for storing crypto currencies.	An exchange is used for the transactions of cryptocurrencies and other fiat money.
A wallet can either be online or offline in nature.	An exchange only works online.
Majority of wallets are decentralized. Which is there's no central unit that manages it.	Even though exchanges are both centralized and decentralized, but majority of the exchanges are centralized therefore it is regarded as centralized.
The security level of a wallet is very high because it is decentralized.	The security of an exchange is weak due to the superiority of the centralizion over the decentralization.

Advantages of a CEX

A centralized exchange is a type of exchange which is owned and run by a central unit or body. The central unit or body takes controls of the activities of a user.
The trading volume of a centralized Exchange is more higher than a decentralized exchange.

• A centralised Exchange has a very high recognition and more users in the world of Exchanges. It is commonly known among people.

• A centralized exchange has a higher trading volume when compared to the decentralized exchange.

• A centralized exchange has a high speed transaction rate. It makes it easier for the users to initiate and complete trading fast. That's in a due time.

• Centralized Exchange has higher liquidity. This means that the users can easily convert crypto to cash for withdrawals.This also makes it easier for the user to buy cryptocurrency at a low price and easily convert the profit to fiat for withdrawal.

Disadvantages of CEX

• with the centralized exchange the central unit can manipulate or change trading volume or even the prices of assets displayed on their platform.

• It is very easy to be tampered by a hacker since it has a single server and all the keys of the users are stored in the centralized exchange,which makes it easier for hackers to target the server and harvest the keys of the users

• Since CEX is controlled by a single unit, so whenever there is a breakdown of one part of the system it will affect the entire system.

• Most users don't feel comfortable using the CEX simple because their privacy is controlled by a central unit or body.

Advantages of DEX

Decentralized exchanges is a blockchain exchange which is not operated by any central body or unit. Which is to say they are not under any supervision. They make use of the blockchain technology.
In the decentralized exchange, there is no need for the requirements of information of a user.

• DEX offers a very high level of privacy. Because there is no third party or a central unit or body that manages or contols the exchange. Also there is no need for the request of any personal information. Therefore the users information is not in the public domain.

• In the DEX exchange, transactions are stored across various nodes(servers).This means that there is no central server that stores all the transactions.

*DEX can not regulated by any central body or government agency.

• DEX gives it users full control their fund or assets. There is no restrictions on how to manage your funds.

Disadvantages of DEX

• Decentralized Exchange platforms are not always user friendly. Also, because there is no neee for personal information or details hackers can join by creating fake account.

• The rate of speed of transactions on DEX is very slow, there by delaying your transactions.

• It is very difficult and also takes a lot of time to cancel or retrieve a place transactions.

The exchange i use is (Binance) and my experience in using it being summarized below ;

I got to know binance blockchain exchange through one of my friends. It is the firt exchange i have ever had experience with.
On the binance blockchain exchange i am able to buy,sell and swap any cryptocurrency of my choice on the exchanges. I am also able to do a lot of different activities on the exchange, like staking a coin etc.
I normally buy cryptocurrencies when they have fallen or dropped and then hold the cryptocurrency till it rises. By then when i sell it i will gain a profit.
for that particular cryptocurrency to rise so that i will then sell it and take the profit.
I have much experience on the exchange because that is what i use most.
I am able to buy fiat money with a digital monetry system here in Ghana. Before you can buy a cryptocurrency on the exchange platform, your asset has to be in USDT. Binance has made it possible in way that you can buy USDT with your local currency, from a buyer online. After buying the USDT you can then buy any cryptocurrency.

Below is a demonstration on how to buy a cryptocurrency on binance.

• I use the binance app for trading so with the app, you will have to go to your google play store or appple store and download it.

• After downloading you then put in your credentials to be logged into your account if you are already a user.

• After you've been logged in, you then select p2p from the home page to place a fiat order.

• You then choose your desire rate of the fiat from the list of buyers.

• You then put in the amount you would like to buy in the fiat options.

• You then go back to your home page and click on the search box at the top right coner of your home page. After which you then type in the cryptocurrency you want to buy.

• You then click on the buy option since you are buying. You then type in the amount you want to purchase .

In conclusion, exchange are marketplace where a user can buy,sell,swap or stake money for cryptocurrency.It is basically an online trading platform which can be either centralized or decentralized. Also the decentralized exchanges are more secure because the user has control of his keys whilst in a Centralized exchange,the exchange platform or the central unit controls and has access to the keys.

Best regards @imagen