Hello guys,
I am so delighted to be among those participating in week number 1 of the crypto academy season 3 lectures. I have attended the lecture delivered by our very own professor in the person of @allbert on the topic A world of Wallets and Exchanges. After attending the lecture, I will be writing my assignment task based on my understanding of the lecture.

Question

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).

What is a Wallet?
Many persons have several definitions as to what they understand about the term wallet. In my case I will want to explain wallet in a very simple term. So let's get started. In my case, I see a wallet as a software that is used to save, send and receive digital currency or token. Just like our various bank that we store our fiat, the wallet stores crypto. The wallet is made up of some secret keys that enables users to have control of their assets. Now, this secret keys otherwise known as private key should be kept very secretive so that others will not have access to it. This is so because once any other persons have an access to your wallet, your asset will be at risk.

In my little understanding, wallets can be classified in this format as shown in the table below.

S/No.	Based on Parameter	Types
01.	Controlling authority	Centralized & Decentralized
02.	Exposure to Internet	Hot & Cold
03.	Number of Crypto it can hold	Single Chain & Multi Chain

Explanation of the various types of the wallet
In a very simple language, I will be explaining briefly all the types of wallet mentioned above. First and foremost, lets consider the number one which is based on controlling authority.

Decentralized wallet can be seen as that wallet that enable it's users have complete authority. In this type of wallet, the user have absolute control and doesn't need to be scared of losing his or her fund unless if he or she doesn't keep the private key safe. Centralized wallet can be seen as that wallet in which the owner dosen't have complete authority over it. In this type of wallet there is a third party who controls the funds.

Hot Wallet refers to those wallet that have access to the internet. It is important to mention here that this wallet is not too secure, whereas a cold wallet refer to those wallet that has no access to internet. It is also important to mention here that this wallet is more secured when compared to the hot wallet.

Single Chain Wallet as the name implies single, it is a type of wallet that stores, send and receive only a particular crypto. Example of this wallet is the Bitcoin wallet etc. Whereas Multi Chain Wallet as the name implies multi, it is a type of wallet that stores, send and receive different crypto. Example of this wallet is Trust wallet etc.

What is an Exchange
Just like I earlier explained in the case of a wallet, same goes to exchange. Many persons have different definitions as to what they associate exchange to be. In my little understanding, I see an exchange as a digital market where trading activities is been carried out. That is crypto currency can be exchange for other crypto currency and also crypto currency can be exchange for fiat.

It is important to mention here that there are basically two types of exchanges I.e the decentralized and centralized. In the case of decentralized exchange the buyer and seller trade via a procedure known as P2P and no third party is included in the transaction. Whereas in the case of the centralized exchange, the buyers and the sellers have a third party that helps to perform the transactions for them.

Basic difference between Exchanges and Wallets.

The table below shows the basic difference between exchanges and wallet.

S/No.	Wallet	Exchange
01.	Wallet are used to store asset	Exchange are used for transaction, like buying and selling of crypto
02.	Wallet are protected using private keys and once misplaced can not be recovered	Exchanges are protected using password and once misplaced can be recovered by resetting your password
03.	Wallet are totally under the control of it's users	Exchanges are under the control of third party

Operations performed on wallet and Exchange
The basic operations that can be performed in wallet and exchange are as follows:

• Wallet is primarily used to store tokens
• Exchange is used for trading tokens and optionally, it can be used to store token at the same time.

Question 2

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?

In my opinion, the reason I think people should have more than one exchange accout are not far fetched. I want to use a life scenario to explain my point. When I first joined steemit in the year 2020, I was using Roqqu as an exchange wallet and for a while the entire transaction was successful but it got to a time where I made a transaction and couldnt get the money till this very period. So to avoid the risk of losing your coins it is recommended one should have more than one exchange account. Another important reason is that the prices of crypto varies in different exchanges so in having more than one exchange account you can buy from one and then sell in the other.

Question 3

What are better? Wallets or exchanges.?

In my opinion both wallets and exchanges are unique in their various ways since they all have their various functions. But to some extent when looking at the activities carried out on both wallet and exchange I can confidently say that for storage purpose I recommend wallet but in the case of trading, I recommend exchange. As earlier explained exchange can be used for both trading and storage so I see exchange as the best.

Question 4

Create an account in a wallet and in an exchange of your choice and show screenshots of the process.

Creating Exchange account

I will be demonstrating this using Poloniex exchange. The following steps is what I used

• Go to your browser and type https://m.poloniex.com/signup

• Enter a valid email and password and then confirm your password. You also click on the click to verify button then click on the check box to accept the terms and condition.
• Once you click on sign up, an email will be sent to you. Then go to the email and then on verify and then you will be redirected to the browser where you will be told that you account has been verified.

• Finally, enter your login details and then access the enter exchange platform.

Creating wallet account

I will be demonstrating this by creating a trust wallet account. Follow the step below as I lead us through the journey.

• First you can visit www.trustwallet.com as the official site.
  

• Secondly click which you wish to use in downloading in my case I will be using google play store.
  

• After successful downloading, click on create new wallet and then click on the check box to agree to the terms and conditions of trust wallet and click continue.
  

• A recovery phrase will be given to you, you are expected to screenshot it or copy it and keep it safe as the next step will require you to input the said phrase and then click on done.
  

• After that your wallet is set and ready to use.
  

Conclusion

Thanks prof @allbert for such a wonderful lecture I have really learnt a lot and I do hope to learn more from you shortly.