Crypto Academy is indeed a wonderful initiative by the steemit team and all crypto professors are doing amazing work to make the community learn more about crypto and blockchain.

We get different articles every week related to crypto and blockchain. This is helping us to learn and enhance our knowledge about crypto and there is a lot to learn.

This week crypto professor @yousafharoonkhanhas talked about decentralized and centralized exchanges.

Exchange is the first requirement if you want to perform a trade-in cryptocurrency and we have two options including decentralized and centralized exchanges. but these two are different in the kind of services and other services they provide so let's talk about quite in detail this topic in this homework assignment.

Q1 & Q2- Definition and difference of Decentralized and Centralized Exchanges

There are two types of exchange in the crypto space. one is known as centralized and another one is decentralized so now let's talk more in detail about both and understand the definition of both the exchanges.

Decentralized Exchange-

It is an exchange that provides complete access to the user along with the wallet key and they do not hold any of the control with them that means the entire authority is with the user an exchange is just a platform to hold or facilitate transactions. Uniswap is one of the best decentralized crypto exchanges offering a variety of tokens on their platform and it's easy to use. they charge a fee of zero point 3% on the transactions however because of Ethereum increased gas fee sometimes this charge goes very high and because of that small users are not able to perform the transactions.
We need not provide any sort of KYC for the account verification and award not like meta mask is good enough to go and all our transactions remain with us because there is no KYC and it's not easy for anyone to track our account easily.

While many things are good with decentralized exchanges but there are some things that are also not good and one of it is the limited service availability and very limited support in case of any transaction issue happens. nothing is perfect and everything required more time to make it better and I believe decentralized exchanges are quiet in the early stages and it will require a few more years for them to have a robust platform in place to offer a variety of services and great customer support. The user interface is very easy to use and simple but it is also with limited functionality and not so advanced unless far as I know then they do not provide applications as well for the mobile so if you want to trade then you only have the option to do with laptop or PC.

Centralized Exchange-

When we talk about centralized exchanges then in India WazirX is one of the leading exchanges.

Centralized exchanges offer a good amount of liquidity and a variety of tokens on their platform along with user support and even the option to add Fiat currency through the bank. this is something that is not available with decentralized and this is what makes the centralized exchanges a better option to go for. they also charge less fee like the one I use to charge only 0.10% fee on the transaction. KYC is a mandatory requirement with centralized exchanges and they provide good support as compared to word decentralized exchanges offer. here we get a variety of services and various modes to operate including an application for the mobile along with a web platform however we do not get the key of our wallet so there is a risk of losing funds if an exchange is not reliable. you might have heard the line that “not your key, not your account” and this totally applies here with centralized exchanges

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Q3- best-centralized exchanges of 2021

I'm quite new to trading and last year I had created an account in WazirX and this year I created an account in Bittrex so I am going to talk about both the exchanges here.

WazirX- I have started using this exchange a few months back and sharing my reviews and experience about it. KYC is mandatory with centralized exchanges how were some of them allow a limited amount of transactions with Nokia I see but in India this is not possible because all the exchanges are for QIC to enable the account for withdrawal and trade. This exchange is also not an exception and they follow the same rules and protocol for all their users.

This exchange charge a slightly less transaction fee which is 0.10% and there is an option to get a 50% discount on the fee if it is paid by their native token known as WRX. this is a good thing and I have enabled this option in my account so that they charge me less fee whenever I trade.

here is one of my recent transactions and paid the fee using WRX so it helped me to save money on the transaction fee.

Bittrex-

I have created my account recently in this exchange I never used for any trade because the interface is quite difficult as compared to another exchange and I think I need to learn about it more before I do anything here. I have shared this snapshot which shows that I have an account with the exchange however since there is no history.

It is one of the international exchanges which is something quite not easy for me so I am not feeling comfortable with this one. the other exchange has easy to use interface and I am familiar with the prices in INR currency but here there is no such currency option and most of the players are in either Bitcoin Ethereum or in USDT. these days when I'm spending some time every weekend to learn about the exchanges ways to trade and lots more about cryptocurrency so I hope that means next few months I'll be able to make myself much aware of these things which will help me to proceed with trading on Bittrex exchange.

Q4- Process to Install Metamask

Metamask is a leading decentralized crypto wallet and I have been using this for quite some time. when I was working on steemhunt and it was required so I had created an account on this exchange however I used it rarely because I'm not good at trading.

We need to open this link and install the wallet in the browser extension-

Link- https://metamask.io/download.html

Once the wallet extension is installed then you need to either import or create a wallet using below shown options

so now the wallet is created and it's showing the congratulations message.

Q5- How to use Uniswap exchange

I never used uniswap before but after going through the post shared by the professor I understood the process and it's quite easy so I am showing the process steps here one by one.

Open https://app.uniswap.org/#/swap

my metamask wallet is now connected with the Uniswap platform and this is how we can check it.

Here is the window that we need to use for SWAP and I select UNI token to get swap against ETH. Uni is the native token of uniswap exchange and it's showing the quote that includes transaction fee and price impact. This transaction will be routed through DAI as shown here.

this is the final step and once I confirm the transaction then swap will be done and this is how we process the swap transaction

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Overall it was a fantastic article that helped me to understand more about both types of exchanges. If you want to use your crypto for trade then having an account in exchange is a must however you choose one as per your requirement however I would suggest having an account in both exchanges. You choose the best as per your need.

Thank you so much @yousafharoonkhan for this nice article.

(Images are taken for post purpose only)