Steemit Crypto Academy Season 2,week 3//CENTRALIZED VS DECENTRALIZED EXCHANGES// Submitted to@yousafharoonkhan
How are you sir? Am sure you are doing great @yousafharoonkhan.
Introduction
For an introduction, I would say exchanges brings a connection between the cryptocurrency buyer and the cryptocurrency owner. The exchanges charges a fees for bridging the gap. By so doing, it makes it easier to purchase cryptocurrency but the blockchain is designed to be open sourced and so decentralized exchange were setup to removed the need of the middleman.
Question 1
What is Centralized and Decentralized Exchanges
Centralized exchanges are those that are managed by a company. This exchanges act as a middleman between the buyers and the cryptocurrency owner. This usually involve some amount of trading fees to connect you to the cryptocurrency owners. Examples of such exchanges are Binance, Coinbase, poloniex, etc.
Decentralized exchanges on the other hand are exchange which connects the buyer directly with the cryptocurrency owner. With such exchanges the middle man which usually controls the transactions just like centralized exchanges is not needed and as such will help reduce transaction fees.
Question 2
Difference between decentralization and centralization exchanges
Decentralized exchanges as earlier said removes the need for the middle man making it more efficient. They operate a peer to peer connection, decentralized exchanges gives users the ability to have full possession of their private keys and therefore full access to their funds. One major concern with decentralized exchanges is liquidity, this is why many investors full in love with the centralized exchanges.
Centralized exchanges are do not give users full access to their private keys and therefore security is bridged. They act as a middle man, there increasing the transaction fees encountered during trading. Liquidity on centralized exchanges are more than the decentralized because there are Alot of market makers which can attract a reasonable amount of takers.
Question 3
write about any 2 best centralised exchanges of 2021 . why are they best in front of you?
Two best centralized exchanges are Binance and Coinbase.
Binance Exchange
Binance isn't new to the cryptocurrency ecosystem, we hear about it, take about it everyday. It was founded in 2017 with altcoins trading in mind. They have been very successful in what they do. There has not been any incidents of security bridge on the Binance platform, making it one of the safest platform in the world today.
Trading Fees
Binance offers a very low teadibg fees up to 0.1% for both Marker and taker side. BNB which their native coin can impact on trading fees bringing as low as 25%.
Type of Cryptocurrency
Binance offers a larger number of cryptocurrency available in the cryptocurrency ecosystem today. The offer more than 100 types of Altcoins and more are still been listed.
User interface
Binance has a very user-friendly interface, making it possible for anyone to trade on it.
Liquidity
Liquidity at Binance is also very high, so that investor's funds are keep safe incase of price fluctuations.
Coinbase
Another very good and one of the best exchanges is Coinbase, just like binance, it was founded in 2012, 3 years after bitcoin codes was released. It is the most frequently used exchange in the United States and is licensed to operate in over 40 U. S. States. Coinbase offer traders and investors secure custodial wallet to store their cryptocurrencies.
Trading fees
Coinbase has a considerable high trading fees, the fee ranging between 0.99 to 2.99 depending on the exchange rate rate per dollar.
Type of cryptocurrency
At coinbase, your have a high range of Altcoins to choice from.
Trading interface
Trading interface is very user-friendly and anyone can be able to trade on Coinbase.
Liquidity
It is very secured and has a very high liquidity for to protect customers assets.
Question 4
Install Metamask, and share step by step screenshot
Using a mobile app, you search Metamask on goggle play store
Download and install
Set up wallet and save seed phrase
Wallet is ready for use
Question 5
How to use Uniswap exchange , and Swap/buy or swap/sell any coin
Uniswap can be found on the decentralized exchanges (DEX) section of the Metamask wallet
Select coin you intend to swap to, connect your wallet and complete the trade.
Conclusion
This has being an interesting and rather practical lectures.
Thank you sir.
First respected student Thank you very much for taking participate in Steemit Crypto Academy Season 2, Week 3 course class..
I have read your assignment very satisfactorily
you explained every step very well
thank you very much for taking participate in the class
Grade : 6