Crypto Academy Season 3|| Home Work Task|| Exchange and Wallet for @allbert by @hydra1

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

In the world of cryptocurrencies, exchanges and wallets cannot be left out as they are continuously being used day in and day out and are usually confused with each other, as the professor rightly said.
Exchanges are cryptocurrency exchanges that provide a platform for users to buy and sell cryptocurrency assets of their choice. are further grouped into two, namely Decentralized Exchange (DEX) and Centralized Exchange (CEX).
DEX exchange platforms are exchange platforms which operate on a distributed ledger mechanism, meaning there is no third-party involvement. Examples of such exchange platforms are Unisawap, Metamask and many more.
On the other hand, CEX platforms are exchange platforms whose operations are governed and controlled by the exchange platform company. Examples of such exchanges are Binance, Huobi, Poloniex, Coinbase and many more.
Wallets, on the other hand, are storage facilities that store or hold crypto assets.Wallets are also categorized into two based on their security level namely Cold wallet and Hot wallet.
A cold wallet is a type of wallet that stores and holds crypto assets offline and is known to be the most secured wallet. Ledger, Keepkey, and Trezor are a few examples.
A hot wallet is also a type of wallet that also stores and holds crypto assets online. Examples are, Coins.ph, Green address.

Differences Between Wallet and Exchange

Wallet	Exchange
The are difficult to use and are not user-friendly	Exchanges are simple and User-friendly
It is used to keep and store cryptocurrency assets	They are mainly meant for trading purpose
wallets are irrecoverable when one loses both private and public keys	They are recoverable when one losses the password
wallets are decentralized, meaning there is no third-party involvement	Exchange platforms are centralized, meaning exchange company controls the exchange
They are highly secured	Exchange platform are not highly secured and can be subject to breaches

Operations in Exchange

Essentially, the exchange provides numerous operations to its users, but the main purpose is to buy and sell cryptocurrency assets, from which they profit in their trading activities. Exchanges also provide leverage to their low-income users in order for them to enrich themselves, as well as the ability to stake in a long-term investment in order to earn passive income. Finally, exchanges provide customers with the ability to make deposits in their various fiat currencies and transact on a P2P platform.

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?

Users should have multiple exchange accounts in the world of cryptocurrencies for the reasons listed below.

Security: Every trader prioritizes security; no trader wants to leave a portion of his funds on an exchange platform that has a weak security system and is easily hacked.We've seen how such exchange platforms have been hacked and users have lost large sums of money in the past.So, having multiple exchange accounts splitting some of your assets between other exchanges will minimize your losses in the case that any of the exchange platforms gets hacked.

Fees: Another reason users should have multiple exchange accounts is because some exchange platforms charge higher fees on transactions. When I first became acquainted with the world of cryptocurrencies, I used Paxful as my exchange wallet, which charged high transfer fees until I was introduced to an exchange that charged lower or no fees at all.

Feasibility: Because not all exchange platforms list new assets or some crypto assets, having multiple exchanges will give you an advantage in obtaining assets that are not listed on one exchange but may be listed on the other; you will only need to switch to the other exchange. For example, I use the Binance exchange as my primary exchange platform. When I was introduced to a promising project that was not listed on Binance but rather on Huobi, I had to switch to Houbi and get the crypto assets I had.

What is better? Wallets or exchanges.?

Well, I will say both are better and they move hand in hand, like an adage in my local dialect that says "The left hand washes the right hand and the right hand as well washes the left hand''. As cryptocurrency traders, we revolve around the duo. If you come to the conclusion that you are only going to buy assets and store them in a safe place, you only need to switch wallets and store your assets there. So far, it is secure.
And if you think you are only going to buy and sell crypto assets to make profits in a short time, you only have to switch to an exchange account, since the wallets are meant for only holding and storing assets but can’t be used for trading purposes.

Create an account in a wallet and on an exchange of your choice and show screenshots of the process.

How To create an account on poloniex

• launch your browser and visit their site www.poloniex.com, at the top right corner click on the menu bar.

• Click on signUp

• key in your e-mail address and password

• click on verify and check the agreement box and click on signUp for your account be created

• Go to your mail and verify your account

How To Create Binance Smart Chain Wallet

• You launch your browser and search for Bianance smart chain extension for it to launch

• After its been launch, click on Add To Crome

• click on Add Extension and wait for it to be download

• Look at the top corner and click on the extension icon

• Click on Binance Smart Chain wallet

• Click on create wallet

• Click on seed phrase for it to be shown

• Key in your desired password and click on continue

• Copy your seed phrase or write it down in a secured place and click on continue

• key in the confirmation keys required and click on continue

• You have now created your wallet on Binance smart chain wallet

Conclusion

Wallets and exchanges are essential in the world of cryptocurrencies for managing our cryptocurrency assets, and learning to manage them will allow us to make the best decisions when deciding how to invest or move our assets, all in the interest of better financial security and future growth of our cryptocurrency assets.

Thank you for reading
Cc:
@allbert