Professor: @yousafharoonkhan
Course: Steemit Crypto Academy, season 2, week 3
Topic: Decentralized and Centralized Exchanges

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Question no 1 :
Write the definition of Decentralized and Centralized Exchange in your own words.(definition should cover exchanges ,not system) only explain in your own words, after understand the exchanges

• Decentralized Exchange

An Exchange which runs on the blockchain by no any central authority is a Decentralized Exchange. It works on peer to peer technology where there are buyers and seller only, no middle man there . Decentralized Exchange platform are non custodial which means it doesn't hold any balance of the traders , here traders have full control of their funds and their own private keys. while doing buying or selling activity users use their own wallet or private keys for the transactions. All the information of the transactions are secured into self executing smart contracts. User have the full control of his activity and transactions in decentralized exchanges.

• Centralized Exchange

An Exchange which is controlled by any authority is a Centralized Exchange. Centralized exchanges works as a middle man between buyers and sellers. Centralized exchange platform are custodians of user data and funds. It holds and have control over all the funds and the user activities. Centralized exchanges uses hot wallets which carries risks of thieft or hack, It runs on servers and sometimes users faces issue of server downtime . Most of the users use centralized exchanges as they are very much easier to use , very user friendly with good features. which is not available in centralized exchanges.

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Question no 2 :
Explain in your own words the difference between decentralization and centralization exchanges

• Decentralized exchanges are non custodial which doesnot keepor hold any fund of the user but centralized exchanges are custodial which have full control over all the fund and data of the users.

• Decentralized exchanges runs on blockchains and keep record of all the transactions on the blockchain and there is no risk of hacking and server down but centralized exchanges run on servers where users face issue of server downtime and we have seen many hacks in the past on the centralized servers and sometimes the owner of the exchanges run away taking all the funds of the users. In decentralized exchange platforms we keep our funds into our own wallet and private keys are stored on our wallet or device.

• Decentralized exchanges maybe little difficult for some users as it requires some technical knowledge and features are very limited but centralised exchanges provide very good user friendly interface for the trading and provides some extra good features which attracts the users most.

• Centralised exchanges use hot wallets where always versy high risk associated but decentralized exchanges doesnot use any kind of wallets as it works on non custodial mechanism. No fund is stored on decentralized exchanges.

• Decentralized exchange is free from authorities' manupulation and provides freedom to users but centralized exchanges can manupulate the market and data as they have control of everything.

• Decentralized exchanges are almost free for all and no KYC needed here but to use centralized exchanges we need to complete KYC form and also high trading fees is taken from users while doing transactions and trading.

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Question no 3 :
write about any 2 best centralised exchanges of 2021 . why are they best in front of you?

• Binance : Binance is my favorite crypto exchange. Binance is the world's top crypto exchange in terms of trading volume and users. It provides high speed, simple and user friendly interface for traders . It has a mobile application which is very reliable to use . It has lots of features like margin trading and futures trading along with Spot Trading. It lists good trusted projects after evaluating the team and the projects. Binance also has p2p marketplace for buying and selling of bitcoin or usdt to or from other users. Binace also provides services of buying or selling cryptocurrencies from our bank cards. I am a verified user on binance :
  
  For security reasons i have hidden my id.

• Huobi Global : Huobi Global is also my another favorite crypto exchange. In terms of volume and ranking it holds 4th rank accoring to the coinmarketcap. it also has very fast and beautiful user interface . it also has futures and margin trading features along with p2p marketplace for users where we can buy or sell our btc or usdt with different users. we need to complete our KYC in order to trade into huobi global. It also has mobile application which is very well designed and very convenient to use. I am also a verified user in huobi global : i have erased my some personal information for security reasons.

Question no 4 :
Install Metamask, and share step by step screenshot

• Metamask is available for desktops users and Metamask mobile app is also available for mobile users , you can download it from google play store for android and for IOS you can get it from app store. I am showing how you can download and install metamask into yourdesktop:

• to install the metamask on desktop open your chrome browser and visit or enter url: https://chrome.google.com/webstore/

• Search metamask and you will find the official metamask extention on the top, click on it.

• Now click on add to chrome and download the extension.

• after intallation you can see the metamask icon on the top and the metamask wallet setup page will open up
  now click on get started

• Now click on create a wallet

• click on i agree

• Now it will ask you to set password for your metamask wallet, choose your password, tick on I have read and agree to the Terms of Use and click on create.

• Now your wallet's Secret Backup Phrase will showup when you click on reveal and save the 12 words of Secret Backup Phrase securely . click on next after saving or keeping your Secret Backup Phrase securely.

• now choose correct order of provided Secret Backup Phrase in order to verify yousaved it correctly or not

• After confirming the Secret Backup Phrase into correct order you will get this congratulation page . Click on all done .
  

• Now your metamask wallet is ready to use

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How to use Uniswap exchange , and Swap/buy or swap/sell any coin

• Uniswap is the decentralized exchange where we can buy or sell ( swap) using metamask . To use uniswap visit https://uniswap.org/ and click on the top right corner "use uniswap"
  

• Now click on the connect to a wallet on the top

• Popup will appear , now choose metamask and approve the metamask to connect to the uniswap

• now you can see uniswap is connected to the metamask and wallet addrerss is showing on the top . Now we can use and swap any coins

• i am showing an example of swapping eth to 1inch token (buying 1inch token from eth) . Choose the eth and select the coin you want to buy . choose amount of eth you want to spend and you can see how much token you will receive .
  similarly if you want to sell your 1inch token choose 1inch to eth ( vice versa of buying) .

• Now click on swap and approve the transaction, you must have to keep some extra eth into metamask for the transaction gas fees . ( in my case i dont have any fund into my metamask so it is showing insufficient funds)

• Now you will receive your 1inch token into your metamask wallet.

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Thanks to the Professor @yousafharoonkhan for the lecture and clearly help us understand about Decentralized and Centralized exchanges, how to use decentralized exchange- Uniswap and best crypto exchanges, i really enjoy your all lectures where you explain all the things very clearly.

Thank you all steemians for reading !