Crypto Academy Season 3 | Intermediate course by @allbert -Task 1: A world of Wallets and Exchanges - Homework by @janemorane

HELLO EVERYONE!

Today I am going to complete my homework task #1 by professor @allbert which is all about Crypto wallets and exchanges, so let's get started!

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).

What is EXCHANGE?

Exchanges in Crypto blockchain are designed to change your cryptocurrencies with other currencies and also You can buy cryptocurrency with your Fiat currencies and also do trading with different Crypto coins and different cryptocurrencies. You can easily exchange your coins with other tradable coins.Exchanges provides a huge number of cryptocurrencies through which you can do trading and also exchange them for the other Crypto coins. you can also exchange cryptocurrencies for your other local currencies anytime anywhere.

Operations performed on exchanges

Mostly all the exchanges should be performed on an Exchange account because it costs less and also there is a variety of other Crypto coins you can exchange your coins with. you can keep the coins in your exchange and with the benefit of doing trading with these cryptocurrencies.

What is WALLET?

Cryptocurrency wallets are the same as other physical wallets In which we keep our money. A Cryptowallet is specifically designed to keep your cryptocurrency secure in it. You can store any kind of Crypto coins in your Crypto wallet and as much as you want there is no limitation on the amount of cryptocurrency you keep and that is the main purpose of a cryptocurrency wallet.

Operations performed in wallet

In a wallet we should not perform any kind of exchange activities because in a wallet it will cost you more fees than exchanging your coins on an exchange account. and you can not easily exchange your coins with other coins in a wallet but you can only swipe your coins with a specific swiping coin and only some of the wallets provide this swiping of your coins. Swiping your coins for other uh is not much recommended in a wallet because it costs high fees which is not a good idea to swipe your coins with others for such a high fee.

---

---

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

• It is very important to have more than one exchange account because their comes specific circumstances in which you need more than one exchange account to make your work easy for example in binance sometimes they suspend the deposit of some specific coins and you need to deposit those coins in emergency because we all know about the Crypto currency markets that it goes up and down in seconds and that's why you can not take the risk of depending upon 1 exchange account. So if you do not have any other exchange account then binance you will face the issue and That's why having more than one exchange account is important for all the cryptocurrency traders and users.
  
• Also I think that people should have more than one exchange account is that we all know that exchanges are mostly not safe and hackers can attack anytime on your exchange account that's why it is more safe to keep your Assets on different exchange accounts and keep your cryptocurrency secure, if one of your exchange account got hacked all your assets will not be affected and you won't lose all your assets.
  

Since the last two months I am using a cryptocurrency exchange account which is binance I choose binance because when I was researching for exchange account to do cryptocurrency trading I came across that b is the most famous and has the most amount of liquid and many people prefer binance all of my friends had binance as their cryptocurrency exchange and when I created account and when I started working on this I felt that this exchange is really the best when it comes to the speed of this exchange it is very fast and as we all know that cryptocurrency is all about Seconds and when it comes to trading we have to buy and sell within seconds and binance exchange does that for you. I choose it because of with features there are so many amazing features are available in the exchange the first feature that I really like is p2p and that is because you can withdraw your funds from the exchange anytime you can deposit funds to the exchange anytime it is available 24/7 which is a very important feature when it comes to trading you can be depositing anytime you can be drawing and if not available is not good for you but by that that is one of the reasons why I really like using Binance.

---

---

3- What is better? Wallets or exchanges.?

• Well in cryptocurrencies ecosystem everything has its own importance and its own purpose, exchanges are good for day to day traders because they can exchange their Crypto coins anytime they want and do trading easily on their exchanges and also win you you have an exchange account automatically you get a wallet inside the exchange and you can keep your coins in the exchange wallet which fulfill the need of having another separate wallet for your cryptocurrency.
  
• But as I said everything has its own purpose so wallets are a better choice for those who have a long term holding plans and they want to keep their cryptocurrency safe for a long period of time they choose wallets.
  
• One more important thing is security, if a person wants to keep a cryptocurrency secure wallet is a good choice because most of the time hackers attack your exchange account and it can be easily hacked. That's why a wallet is safer than an exchange account.

---

---

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

Creating Meta Mask Wallet

For a wallet I have choose meta mask wallet and I will show the steps of how you can make meta mask account step by step.

STEP #1

• Firstly you will have to download the Metamask app from the google play store or directly from the google chrome.
• Once you install the meta mask a new tab will appear, click on the get started button to start making your account.
• On the new page click on create a new wallet and continue to another page
• The first step you will have to complete is to create a password for your wallet.
• Create a very strong password and click on create password to continue.
  

STEP #2

• Next step will be securing your wallet through a secret recovery phrase.
• Click on the 'start' button to make your wallet more secure through this secret recovery phrase.
• You will be given a secret phrase and you will have to write it down on a page with yourself.
• Than in the next step they ask you to enter the phrase again with a correct order.

STEP #3

• When you complete the recovery phrase now you have successfully created your meta mask wallet.
• Click on the I Agree button to agree all the terms and conditions of meta mask.

---

---

Creating FTX Exchange

For an Exchange I have chosen FTX exchange and now I will show you how you can create FTX Exchange with easy steps.

STEP #1

• To create your FTX wallet search for FTX and after it opens click on the sign up button to create your wallet.
• Start by entering your Email and password.
• Click on the ' I agree to FTX Terms of service' to continue.
• If you want to know more about how to start your activities on FTX simply click on the feature overview to take a tour.

STEP #2

• Now if you want to start deposits and start trading you will have to verify your account.
• Click on the wallet and scroll down here you will see the verification button.
• Click on the verification button and in the box you will have to enter all your information.
• You will click on the submit information button and after your submit your information, you will get a verification email and after that you can continue trading and deposits on your exchange account.

---

---