Crypto Academy Season 3 | Intermediate course | A world of Wallets and Exchanges - by Professor @allbert II Hibbanoor

Hello professor @allbert. This is @hibbanoor and I am very thankful to your for delivering the lecture in such easiest and simplest way. It was very informative for me as i am learning crypto world. My huge respect to you for the lecture which are actually the treasure of knowledge. In this lecture, i learnt about wallets and exchanges. After reading the lecture carefully, now i am going to perform my homework task.

Source

1- Explain differences between wallets and exchanges as well as mention which operations should be performed in an Exchange and which operations should be performed in a wallet (in terms of fees).

In simple word, Wallet is use to store the your crypto assets. Wallets are used for holding and storing our crypto coins. Multiple keys are given to the user which user use to access the wallet. Only that person have access to wallet who have the keys. Multiple wallets are being used such as Tron wallet. All the exchange platforms have their own wallets.

The Wallets are the apps which we use for storing our assets, and through which which we can access our assets at any time. All the keys which are used for buying or selling the crypto currencies on crypto world are managed in Wallets. The Wallets are classifies into Hot and Cold wallets

The trading is all about selling and purchasing the crypto currencies. We buy crypto currencies hold them till value of crypto currencies goes up and then sell them to earn profit. The Exchanges are used for buying and selling the coins. We can exchange the crypto currencies using the exchange platform. Here the user is not the only main authority. Such as Binance is an exchange platform, we can buy and sell the crypto coins over there.

It won't be wrong saying that Exchanges are the crypto markets where we perform the buying and selling of crypto assets.

Which operations should be performed in an Exchange and which operations should be performed in a wallet (in terms of fees)

Wallets:

When we buy the crypto currencies, we need to hold them. The main purpose of wallet is to hold and store your crypto assets. You can access your assets at any time. The wallets keep your assets more safely. But now some other features are also included for users. You are able now to perform staking too with wallets.

Exchanges:

The exchange platform are being used for buying or selling the crypto currencies. The crypto trading is performed on exchange platforms. Now some other ways are there to earn more profit on exchanges. You can now perform the staking on exchanges too for getting more profit.

Characteristics	Wallet	Exchange
Security	The Wallets are more secure and safe. All the users fund are store in Wallets so security is main concern so that not everyone can access the wallet. The keys are used to Access the Wallets so no unauthorized person can access the wallets.	Exchanges, on the other hands, had some security problems in past. The people could get the access to other's exchanges because of security lackness.
Complexity	If we talk about the wallet, It is more hard for the user to manage the Wallet.	The exchanges feel more easy and comfort for the user so they prefer to store their crypto currencies on the exchanges more of the time. The exchanges feel more easy and comfort for the user so they prefer to store their crypto currencies on the exchanges more of the time

Registration Process	The wallet's registration process is hard sometime for the user. It is a bit lengthy as you need to keep backup of your mnemonic, need to store your keys. All these thing are needed while registration process.	The exchanges are considered easy to register by the user. You do not need any private key or mnemonics or phrase of seeds for registering yourself in Exchange platform, just some basic things are required such as email, phone number etc.
Usage	The basic purpose of Wallet is storing the Crypto assets	The basic purpose of Exchanges is providing a platform for crypto trading.

Private keys	As password and keys are required for accessing the Wallets. So there is need of storing the password and keys very carefully because once we lost our password and keys, we lost them forever. There is no way of getting them back	The exchanges do not make their users more worried about thsi matter. In case of lossing your password, you are able to get the new password again and can access the exchange too. You do not need to worry if you accidently lose your password.
User's authority	As wallets require keys and password to give the access to the users, so unauthorized user can access the wallets. So user feel more secure in case of wallet because he know only he can access his assets in wallet	In case of exchange, they are not much secure as compare to wallet. SO it is best to keep your assets in wallet.

2- In your own words, Why You think people should have more than one exchange account?. Do you have an exchange account? and Why that specifically?

The exchanges are use for buying and selling the crypto currencies. Multiple exchanges are currently working across the world. Each has its own characteristics and features. So it will be more beneficial for a trader to have multiple exchange account because he will then be able to enjoy the feature of multiple exchanges

There are many exchanges who offer you to perform the trading at low trading fee. It will be beneficial for you to perform trading using such exchanges by paying the low trading fee. So that's why you must have more than one exchaange accounts if you are a regular trader.

There are some exchanges who do not offer some crypto currencies. And there are some, who offer you new crypto assets to invest and to earn. Such newly introduced currencies have low price. You buy these currencies at low price from such exchanges. When these currencies' price rise, you sell them and earn profit. There are some exchanges who are not accessible for you everywhere.

The wallets had faced many security issues in past. If you are a person with only a single exchange account and such security problem occur with your exchange, you may lost your whole assets. So having multiple accounts is better practice as you can dicide you assets. You can divide you assets and can save them on you multiple exchange accounts. If by chnace, one get lost, other will be safe. In this way you will be safe from losing you whole assets. But now exchange security is get better alot.

Do you have an exchange account? and Why that specifically?


Yes, i have an exchange, Binance. I use the Binanace because i feel it easy to proceed. Moreover it if top listed. Many crypto currencies are offered here which are not on all the other exchanges. You can perform trading of all those currencies. More over this platform is fast and allow you fast trading.

Secondly it is easy to manage. It is more secure platform. You can perform you transactions without worrying about security issues. It is simplest exchange platform. This exchange platform is available in all the countries(except only few such) to perform the trading. It is not ban and you can access your exchange account anywhere around the world.

3- What are better? Wallets or exchanges.?

Wallet and exchanges are two different thing which use for different purposes. The wallets are use for storing and holding your crypto assets while the exchanges basic function is offering your platform for buying and selling the crypto currencies. But Now, the wallets and exchanges are offering you some same features too. Like both can be use for staking.

Exchanges are centralized and decentralized too. The decentralized approach is more reliable for the user. The user feel more secure in case of decentralization. Because decentralized platform cannot be hacked. There is no middle man in decentralized to access your information.

In exchanges, if you lost your password, you do not need to be worry because there are ways to get your password back and you can access your account again. In case of losing password, you do not loss your account.

If we talk about the wallet. If you lost your password, you cannot get it back. You lost your account and all assets which were stored in account. It is not easy to manage the exchanges. You should be very careful about keeping backup of mnemonics, password and keys because you cannot get them back once you lost them.

So i think the exchanges are more good as compare to the wallet. Wallets cannot be use for performing the trading, You cannot buy or sell crypto using Wallets. But you can use the exchange for storing your assets too. Exchanges are easy to manage. Exchange offer you more features. You can buy, sell and even store your coins too.

4- Create an account in a wallet and in an exchange of your choice and show screenshots of the process

Creating Wallet

1- Visit the metamask website. Click on the Download Now button.

2- Click on Intall Meta mask For Chorme.

3- Click on the button "Add to chrome". It will add the extension to the chrome.

4- Click on the metamask when your extension added to the chrome. Now Click on the Get started.

5- Click on Create wallet. If you already have created wallet then choose the second option.

6- A page will be appeared. Click on I Agree. Then Another page will be shown where you need to enter your password and email. Click on create.

7- A page will be apeared then. Where you will get the password. Keep that password carefuly. It wil be use in future for accessing the acount.

8- Then you will be asked to arrange the mnemonic which were given in previous step. After that click on the ALL DONE button.

Creating an exchange account on Huobi.

Step 1- Visit the https://www.huobi.com

Step 2- Click on sign up to creat a new account

 

Step 3- A new page will be appeared

Step 4- enter the required information. like email, passowrd etc. And click on sign up.

step 5- Some verification is required and after that your account will be opened.

Your exchange account has been open. You can start trading.

Conclusion

In this lecture, we focus on wallet and exchange. Both have different characteristics and both are being used highly by the crypto traders. One must be clear about the usage of these two for becoming a good trader. Some people prefer the wallets while other like to use the exchanges. Both are useful in their own way. Moreover i learnt to create the exchange account and wallet too.

Thanks again to professor @allbert.