[Dex, Cex, Popular Exchanges and Trading Cryptos] - Steemit Crypto Academy S5 - Homework Post for Task 7

Exchanges are the virtual licensed platform where cryptocurrencies can be traded. Thus buying and selling of crypto.
Exchange platforms are virtually for trading crypto-assets; nevertheless, exchange platforms supply users with wallets to save their cryptos.
With cryptocurrencies, trends are what keep investors going to make use of an exchange platform. At times, traders go into trade accepting crypto assets after knowing the crypto trends and prefer swapping from one cryptocurrency to another, which is commendable. This kind of trade is achieved on an exchange platform.
With exchange, We have the centralized exchange (CEX) and decentralized exchange (DEX).

some centralized and decentralized exchanges are:

CEX	DEX
Binance exchange	SushiSwap
KuCoin exchange	PancakeSwap
FTX exchange	Compound

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Differences between a Wallet and an Exchange.

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Wallet	Exchange
It is basically for keeping crypto assets	its fundamental use is for trading on crypto assets
It offers very high security	it provides relatively high protection compared to Wallet
It's costly compared to exchange	it’s less expensive compared to Wallet
It’s not complicated	it’s difficult and quite complex.

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Advantages of Decentralized Exchange (DEX)

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• privacy:
  No requirements for confidential information to access your account, making everything anonymous.

• Reliable Security:
  The private keys are being held by the user only, and so hacking gets complicated, making it reliable. It’s tough for hackers to get through your account because the platform does not keep your private keys, making online accessibility unavailable.

• Low transaction fee:
  It offers a low fee rate to significant or minor transactions since no third parties are involved.

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Disadvantages of Decentralized Exchange (DEX)

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• risk of account loss:
  Because users themselves handle the private keys to their crypto wallet, one will lose an account when the user loses the keys to the wallet; thus, you cannot make the account recovery unless with the keys.

• Unacceptance of fiat payments:
  The unacceptability of fiat payments on the platform makes investors who trade with fiat currencies uneasy.

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Advantages of Centralized Exchange (CEX)

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• Scalability is high:
  A large number of transactions can be at a time without slowing the transaction cycle.

• Transaction is faster:
  When compared to a decentralized exchange, a higher fee is charged though transactions are quicker.

• user-friendly interface:
  It offers new users to the platform a friendly and straightforward way of trading in cryptocurrencies.

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Disadvantages of Centralized Exchange (CEX)

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• security:
  security is not entirely reliable because an organization governs the system. The keys and passwords to the account are also backed up on the platform, making hackers able to access an account.

• intermediaries:
  centralized exchanges require a third party to complete transactions.

• Users don't get complete control over their assets since the private keys to the account are possessed by the exchange.

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Have you used an Exchange before? tell us about your experience.

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I honestly don’t use exchange intensely, and besides, the only exchanges I have used before are the Binance and the Houbi exchange.

However, I started using these exchanges due to the steemit crypto Academy community, where professors give weekly lectures and leave assignments. Because of the weekly lessons professors give, where some relate to exchanges is how I learned about exchanges.

At the start as a new user of exchange, it was tricky to use because the interface was quite complicated, although there were procedures from the crypto professor.

These exchanges offer multiple pairs of cryptocurrencies, which assists traders in making easy transactions to prevent lots of fees.

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Thank you.@qudus