STEEMCRYPTO-ACADEMY/SEASON3/ WEEK1/ HOME-WORK POST FOR ALLBERT/ A WORLD OF WALLET EXCHANGES
Hello professor @Allbert thank you very much for this wonderful lectures of yours trust me I have really learnt alot keep it up, Let me kick-start my home-work.
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 wallet
Before I proceed to answer the question it will be nice we know what wallets and exchange is all about. A cryptocurrency Wallet can be defined as an aparatus programed in such a way that cryptocurrencies, private keys, can be stored and used for crypto transactions, the functions of the various keys are vital if you misplace your keys you may end up loosing all your tokens in the wallet, crypto wallets offers great role of assisting in encrypting and signing various transactions.
what is exchange
When we talk about crypto exchange it's simply a business strategy that gives customers the lime light to trade cryptos or digital currencies in place of other assets, be if Fiat, physical money or other digital currencies.
Difference between wallets and exchanges
| Wallets | Exchanges |
|---|---|
| It is used in holding and storing cryptocurrencies of any kind | it is basically used in trading different cryptocurrencies of any kind |
| Wallets requires private keys in order for you to sign transactions | it requires mobile numbers, password, or email address to sign transactions |
| Wallets are used to sending and receiving cryptocurrencies | it assist you in converting your Fiat currencies |
operations performed in wallets
A digital wallet in this case refers to a software electronic device, or online service that allows investors or businesses to make transactions electronically, this involves transferring of token from one wallet to another, through wallets address.
Companies and big films that need to collect consumer data for their marketing needs can easily benefit greatly from digital wallets. They can easily know the way and manner that their consumers carries out operations all they need do is to connect the wallets, whatever operations they carry out will reflect on the connected wallets.
Digital wallets gives you that edge to connect your business located in the rural area, and it will be monitored closely.
You can use your wallets to storing some vital inform about your self for example you can hold your movie tickets, in your wallets, and also you can hold your digital ID card in your wallet too.
operations performed in exchanges
Crypto exchanges is not an App, but you can send a crypto currency to a third party to he's/her crypto wallets it can now be converted to any digital currency of their choice
Digital currency is independent prior to the currency exchange it basically faciltates trading activities in that particular currency.
You as an investor can purchase any digital currency of your choice through a digital exchange
Digital exchange can have the ability to become brick, meaning it can exchange a traditional payment system prior to the digital currency been used.
Some well known Decentralized exchanges gives a push to facilitate a P2P crypto trading Decentralized exchange faces lots of scalability.
Aside holding and storing your tokens in the wallet so many wallets of rescent allows staking, be it pool staking or any other staking, and in some cases a fee of around 1.0 or 2.0 is initiated/charged depending on the platform and the transaction, and after you place your stake there will be some fees associated with the charges, network fees and all the rest.
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
When we talk about exchange account it's been divided into two the centralized exchange, and the Decentralized exchange exchange. For the centralized exchange we have some cool categories under it we have the coinbase, binance, kraken, and Gemini, all these mentioned exchanges are been controlled by private individual's, companies, the platform gives room to transact different cryptos.
All this exchanges requires toroll identification and registrations, the various exchanges that I have listed above offers good trading capability, volumes, and liquidity, any centralized exchange doesn't aline with the philosophy of Bitcoin in this case they operate via their private server, since it's been controlled by a central authority.
I think people should have more than one exchange because of the nature of the both exchanges, be it centralized and Decentralized, there are some transactions that can be carried out in a centralized exchange that can't be done in a Decentralized exchange so it's very possible and good to have the both exchanges.
A Decentralized exchange has no control over it, but each computer system used by the individual is been controlled by that individual himself, so if one computer system switch off you can easily use another one and the network will keep on moving.
As we all know in a Decentralized exchange system you can have multiple accounts because it's not controlled by anyone, same too is applicable to a centralized exchange, for me I have two steemit accounts, every transactions I makes there is intact things can be deleted and informations there remains safe and secured. But in a centralized exchange you can easily blog and at the same time delete whatever you have blogged.
It is very necessary People have both exchanges, simply because they offer Different features, and out people deserves the best.
Do you have an exchange Account and why that specifically??
I have both exchange accounts, be it centralized or Decentralized exchange account, for the centralized exchange I have binance and for the Decentralized exchange I have two Decentralized account, as we all know binance is one of the best leading exchange account so far it's services are so simple and eazy to access, it's totally the best in tense of trading capability and so many other exciting features it possesses.
For the Decentralized exchange I have two account the first one Is steemit, and the second one is HIVE account, the both Decentralized account are very similar in tense of the way that it's been programed. Hive works exaltly as the steemit exchange account.
What are better? Wallets or exchanges
This question is optional regarding and depending on the individual themselves, but for me I think exchanges is better and I will state my reasons for choosing this, when will talk about cryptocurrency exchanges we are talking about a business strategy that gives individual's the opportunity to trade cryptos in respect to tjeir digital currencies and Fiat, all in the name of making money, as we all know everyone here out native is to make money in the end.
Exchanges gives you the opportunity to do that, while wallet you can safe and secure your token, and of rescent they are now adopting staking and all the rest. But for me I think exchanges is the best for me. This steemit platform here where we are blogging is a Decentralized exchange we blog and in the end we make some cryptocurrency and we sell then off, and cash is in our pocket in the end.
Create an account in a wallet and in an exchange of your choice and show screenshots of the process.
Nice question here I will be showing screen shots of how I'm going to be creating a Dash wallet
- First visit google play store and search for Dash wallet it will pop up, click on it and first install the App on your device.
- Installation of the App won't take lots of time but at least the minimum of 4mins, after that the App will open and other procedures will take center stage.
- After you are done with the installation you open the App and click on create wallet. Another phase will pop up.
- Here you will be asked to choose a four digit PIN, after you are done with that a phase will pop up where you will be mandated to copy down some worlds that will be used to securing your wallets, you can use then whenever you want to logg in. It's more like your keys.
What you need do next is to write down the phases more like your keys, and keep it in a safe place.
After you are done here the next phase is the final phase after that your wallet will be created.
In this phase your wallet have officially been created and you are now eligible to carry out transactions here.
If you logg out logging in again you will have to provide those stuffs you copied down, they are more like your keys.
Creating an account in an exchange I will choose Poloniex exchange.
To create an account firstly visit google play store at the search axis click on Poloniex and proceed with the procedures.
Install the App and proceed to opening it, here Poloniex app will open and you have to sign up if you don't have an account before.
- In this case I will click on the sign up botton because I don't have an account before now.
After you are done creating your account, a notification will be sent to you on your Email, and you will confirm it there.
After you must have sign in all your details you will then logg in using the App, and another phase will pop up.
- At this point your account has been officially created, and you can go on in carrying out your transactions.
Conclusion
This is the time I will use to summarizing all what I have been writting since, from my lectures you will understand that wallets, are basically used in holding different tokens of your choice.
In wallet you can do staking, and also you can do staking pool, and your APR, will be stated in there. There is a lot different in wallet and Exchanges, wallet can't perform the functions of an exchange. And vice versa.
Creating a wallet is very simple if you follow the procedures, and also creating an exchange, is also very simple what you need to do is to pay keen atten and thus follow the procedures.
From the lectures you will understand the different between centralized and Decentralized wallets, and their various functions, you will also understand that centralized system means controlled by someone, while Decentralized is been not controlled by anyone.
Cc:@Allbert