Crypto Academy Season 3 | Intermediate course | A world of Wallets and Exchanges - by Professor @allbert

Hello everyone, I am much excited to participate in this week's crypto academy homework task by professor @allbert. This week is all about A world of Wallets and Exchanges. And I will be making my submissions based on the question that has been asked by the professor.

I will like to use this opportunity to congratulate the new professor of the crypto academy, especially professor @allbert.
The first question I will be tackling is below this writing, which is the question asked by the professor of this course.

Question One: 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).

Wallets.
I will define wallets or explain wallets as storage for cryptocurrencies. We can further say that wallets perform the function by storing public or private keys required to buy or sell other cryptocurrencies, that notwithstanding, it provides some kind of digital signature authorization to every transaction made. We ca further say that, these digital wallets are in a form of devices, it could be a program running on an application or even an online website or a service which is being offered by the crypto exchanges. Wallets can be classified into two which are the hot wallet and cold wallets.

Where we can say that, Hot wallets in simple terms are those having some kind of connection to the internet whiles the cold wallets are those that runs offline. They do not have any connection to the internet.

The operation performed in wallets, I give a clear example. For instance, I have a toke say Ethereum which is work $1500. And the current price of Ethereum is less, so I have decided to keep it for the next few months and when possibly the price of Ethereum goes high, I seel my token. In this kind of situation, I will be needing a wallet to safe my token for safe keeping.

Exchanges

Before I delve into what exchanges are in the cryptoworld, I will give an overview of what an exchange is. These are said to be a form of market place, in which commodities, security and derictives and also other form of financial instrument, all this are traded on this exchanges. The major of most pressing function of these exchanges are to make sure there is fair, safe and oderly trading.
Exchanges are also global inture, where people can make exchanges of their Stokes to other people around the globe.

In the case of exchanges, where I will want to swap my token with other tokens, like selling steem for BTC, I will have to employ and exchange like Binance, Huobi and other exchanges available. Some of the exchanges are not available in certain countries specially when you want to sell for fiat.
So operations performed on exchanges could be selling Steem for BTC, Eth for BTC or vice versa.

Question Two: 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?

This question is more or less like a life experience. There are reasons why one must at least have more, if not two but three exchange accounts. The reason being ;

• A practical example is, sometimes you could want to deposit steem to Binance, but there are mostly cases of which they will say there is an upgradement for that matter it is disabled. So in this case, you will need the assistance of other exchanges such that you can make your deposit.

• Also, not all exchanges has the same charges when making transactions, or swapping cryptocurrencies. For instance selling STEEM for BTC on Binace could have higher charges compared to other exchanges like Huobi. So sometimes you need other exchanges to make these comparison first before making this transactions. No one will want to make loss in the crypto world. Everyone always want to make profits for that matter it is very necessary to have more than one exchange account.

• Moreso, some changes do not support all cryptocurrencies. For instance, in the case of Huobi, you can exchange STEEM for fiat. So it means that, this cannot perform all transactions you need. So you will have to depend on other exchanges as well. Not all exchanges are brokers, so definitely you can make all kind of transactions on certain exchangers. So it is necessary to have more than one exchange account.

A clear example is, there was a case where binance was disable for deposit, in this case you can use Huobi for your transactions but cannot sell for fiat. So you will have to make other form of swapping then send to BInance before converting to fiat.

It is necessary to have multiple exchange accounts because, they both work hand in hand. They support each other although they are running on separate platforms, but looking at how you can combine them for use sometimes will make it an undeniable fact that, you should or must have multiple exchange accounts.

Do you have an exchange account

Yes, I have an exchange account. I have a Binance account which I use most often and also I have another exchange account which is Huobi. which I use when Binance is undergoing maintenance sometimes. Binance is one of the most simplex exchange platform you can find in the crypto world. Not because is simple to use, but also gives opportunity to every country to make their transactions at anytime and anywhere. Huobi for instance is not a breaker based, so you cannot sell your tokens for fiat. So you will have to make a transfer to Binances to convert for fiat. So Binance really stance out as its uniqueness glows.

Also, when making your transactions on Binance, it gives you the opportunity to know the transactions speed of all traders and inversters on board. And also gives you the necessary details of such traders. You can see that, sometimes you can get the contact info of the trader you want to sell your token to, in other to make faster transactions. This is the more reason why I choose Binance over all exchange accounts.

Qustion Three: What are better? Wallets or exchanges.?

This is a very tough question to answer, but to me I will say that, exchanges are the best. Even though wallets are good and has a major role it plays. But the work exchanges does carry out is uncomparable. Wallets are only known for keeping tokens for a long term plan based. Aside that, it does not perform any other form of transaction. But considering exchanges, they can also serve as storage for keeping tokens. I sometimes keep my stem in my Binance account. So they serve as storage as well as wallets. So to me I will say exchanges are good and the best for the significant function or rolethey play.

question Four: Create an account in a wallet and in an exchange of your choice and show screenshots of the process.
In the crypto previous lessons with professor @yousafharoonkhan where in one of hislecture we learnt about "Decentralized and Centralized Exchanges, How to use Uniswap, Best Cryptocurrency Exchanges of 2021 Submitted by"
As part of the lecture, he thought metamask which is an example of a crypto wallet, so since I am familiar with that, I will be using metamask as my chosen wallet and I will be teaching how to create an account in a wallet on metamask.

I am using a laptop, so I will be using the windows version of the metamask and specifically the chrome version.

Step-by-step approach

Step One
log into MetaMask through the Metamask.io web address. Then click on the "Download" to download

Step Two
We will download it into the Chrome browser, IOS and Android devices. I prefer the Chrome browser. Then click on the '' Install MetaMask for Chrome '' section below.

Step three
We click on the marked indications ( add to chrome extension)

Step Four
MetaMask has been added to the Chrome browser as an add-on. Then click on the MetaMask logo.

Step five
Click on "Get Started" to proceed.

Step Six
Click on create wallet to proceed, we are not interested in importing as for the first time

Step Seven
After going through the warnings, we click on the "I Agree" option.

Step Eight
We create a password consisting of 8 characters, then confirm our password. and accept the terms and proceed.

Step Nine
Read thoroughly what you see in the picture, a 12-word password will appear. you need to keep that password securely in order to regain access to the account.

Step Ten
After saving the words somewhere, we confirm the words in order. Then we click on the place I marked.

Step Eleven
Created the account successfully. All done to proceed

Step Twelve
We log into the wallet. We can interact with the exchanges shown in the picture via the MetaMask wallet.

My wallet is ready,

Creating an exchange account on Huobi. I chose Huobi for the purpose of this course.

First of all log onto the site of huobi with the link provided. https://www.huobi.com/en-us/register/

On the home page, the firs page that will appear, you will have to select register if you are registering for the first time.

Above are the screenshots you will need follow to creat an exchange account on Huobi. All steps has been followed and practically shown.

This was a very great and interesting class. The professor did so well by summarizing all what was needed in his lecture note. It did guided me in making my research. Thanks to you professor.

All aspect of the questions asked by the professor has also been answered. And practically questions also demonstrated and shown in my summary.

Thank you for reading my post.