Assalam-O-Alaikum everybody and welcome to this post. Hopefully, all of you will be good, and may Allah bless all of you with the best days and times.

Once again this is my homework task in week 3 season 2 of the Steemit Crypto Academy. This is my homework submission for dear sir @yousafharoonkhan from our beloved country Pakistan. Today our topic of discussion is Decentralized and Centralized Exchanges, How to use uni swap, best Cryptocurrency Exchanges of 2021.

From Professor's Post

There are some questions asked by the dear professor as the assignment of this week. So I will try my best to explain each question in this post.

(01)

Decentralized Exchanges:

Decentralized Exchanges are crypto exchanges in which one can sell or buy his own crypto assets according to their own decisions and willingness. In decentralized exchanges, the users or traders are not responsible to follow the rules and regulations set by the exchange developers.

In decentralized exchanges, there is no involvement of any central authority in the transactions and payments. The exchange developers only act as a transporter or a relator between the buyer and the seller. The central authority only links them both and they can do their transactions (buy or sell assets) according to their own wishes.

In these exchanges, the traders or the investors have a free hand to utilize their assets. They can invest or transact their assets whenever they want and they do not need the permission of the central authority to do these actions. The funds are under the control of the users.

The most common and most used decentralized exchanges are:

• MDEX
• MDEX (BSC)
• Uniswap (V2)
• PancakeSwap
• OpenOcean

Centralized Exchanges:

The centralized exchanges are the exact opposite of decentralized exchanges. In centralized exchanges, the users cannot sell or buy crypto assets without the involvement of the central authority. All the transactions and funds are under the control of the exchange developers.

In centralized exchanges, the traders( buyers or sellers) do not have any free hand to manage their own transactions like the decentralized exchanges. The users are responsible to follow the strict rules and regulations set by the company or the developers.

In these exchanges, the third party (Central Authority) plays a significant role in the transactions and the funds management. One cannot sell or buy crypto assets without seeking permission from the central authority. All the funds are under the control of the exchanges.

Some top centralized exchanges are:

• Binance
• Huobi Global
• Coinbase (Pro)
• Kraken
• Bithumb

(02)

Difference between Decentralized and Centralized Exchanges:

Now in this segment, we will discuss the differences between decentralized and centralized exchanges. So let's discuss them. I will represent the difference between both in the form of tabular data.

Source

Decentralized Exchanges	Centralized Exchanges
=> In decentralized exchanges, funds are under the control of users that are working.	=> In centralized exchanges, the funds are under the control of exchanges (central authority)
=> There is no compulsory process of verification in these exchanges. The users can trade whenever they want without any complex verification.	=> There is a very complex and complicated process of verification and the users cannot trade in these exchanges without being verified.
=> In decentralized exchanges, no fee or tax is charged on making transactions. It is free of transaction fees.	In centralized exchanges, the buyer and seller both are charged with a transaction fee as per the rules and regulations.
=> Decentralized exchanges are considered more secure than centralized.	=> The centralized exchanges are less secure than the decentralized exchanges.
=> The working principle of these exchanges expands through a chain network called a blockchain. Thus, there are no chances of fraud or scams.	=> The working principle of these exchanges is only based upon a central authority or organization. So, there are more chances of scams.
=> It is not compulsory for the users to follow the rules and regulations of the exchange developers.	=> The users must have to follow the strict rules and principles of the exchange developers.
=> It is impossible for hackers to steal assets from decentralized exchanges.	=> It is very easy for hackers to steal assets from centralized exchanges.
=> These exchanges do not have issues in the maintenance of assets throughout the year and one can make transactions whenever he wants the whole of the year.	=> It is possible in centralized exchanges that some issues could be fall in and users could find difficulties in making transactions.
=> The trading volume of these exchanges is less than that of the centralized exchanges.	=>The trading volume of these exchanges is more than that of the decentralized exchanges.
=> The liquidity of these exchanges is low.	=>The liquidity of these exchanges is high.
=> It is complex and complicated to use for new users.	=> It is very easy to use for new users.
=>E.g: Uniswap	=>E.g: Binance

So these are some major differences between these two types of exchanges. Hope so that now it will be easy for all of us to differentiate between these two types of crypto exchanges (Decentralized and Centralized).

(03)

Top Centralized Exchanges Of 2021:

So now we will discuss 2 top centralized exchanges of the year 2021.

1. Binance:-

• Binance is one of the most famous and best crypto exchanges these days. Binance is a centralized crypto exchange in which all the funds and transactions are under the control of the Binance developers and staff. There are a number of crypto-assets and their trading is available in the Binance Market. Besides all these assets the Binance exchange also has its own token known as Binance Coin (BNB) in the crypto market. BNB coin is also on the trending list of crypto assets.
• The market capitalization of the BNB is about 92B at the time.
• I like Binance exchange as it is one of the most commonly used crypto exchanges at the time. There are many interesting features in this exchange but I like it due to the P2P Order feature. It is also very easy and reliable for all cryptocurrency traders and investors.

2. Huobi Global:-

• Huobi Global is also one of the most common and most used centralized exchanges. Its central working unit is under the control of the Huobi organizers and it is also well-known and there is a number of crypto assets are available in this exchange for trading. One can get a better reward by working and trading on this exchange.
• Once get verified and then this exchange is very easy to use for all of the new users as well as the old crypto traders.

So these are two centralized exchanges that I like the most because of their significant features and simpleness.

(04)

Metamask Installation and Step-By-Step Screenshots:-

This is the practical segment of our today's lecture assignment task. In this segment, we will learn that how can we install the Metamask. So let's start our method step-by-step.

• First of all, go to your browser which you use, and in the search bar, search coingecko.

• Now, you have to go to this website.

• You can see the DeFi option in the top menu bar. You have to click on this option.

• Now, click on the Decentralized Exchanges (DEX) option as mentioned in the above screenshot.

• Here you will see a number of DEXs and you have to click on the Uniswap (v2).

• In the about of Uniswap, you will select the website option. This will bring you away from the coingecko.

• Now, click on the Connect Wallet option. As mentioned in the above screenshot.

• Now, select the Metamask.

• First of all, you have to add the Metamask extension to your chrome. So, you have to click on the Download Now option.

• Here, click on the Install Metamask for Chrome. You will directly move to the Chrome Web Store.

• Click on the Add to Chrome option.

• Click on the Add Extension option and the Metamsk extension will be added to your chrome shortly.

• You can pin the Metamask extension to your chrome extension bar.

• Now, click on the Get Started option.

• As we have to create a new wallet so click on the Create a Wallet option.

• Click on the I Agree option if you are agreed with all the instructions and rules.

• Now add a password to your Metamask wallet for security purposes. And mark the I have read and Agree option and then click on the Create option.

• Now secure your secret backup phase words as they are very important for the security and privacy of your wallet. Store these words somewhere on your computer.

• After keeping these words somewhere secure, you have to click on the Next option.

• Here you have to confirm the sequence of your backup words. And then click on Confirm.

• Now your Metamask account has been created and ready to link with Uniswap. Click on All Done.

• You can see the Uniswap name here. Just click on the Start Swapping option.

• Now, your Metamask account is ready to swap ETH to any of the tokens you may want.

So this is the complete method to install the Metamask and connect it with the Uniswap to do any swapping of any token or coin.

(05)

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

Now you have created your Metamask account and it is connected with the Uniswap decentralized exchange. In the Uniswap exchange, you can exchange any token you have in your wallet with any of the tokens you may want to buy or exchange.

• Firstly, you have to select the token which you want to exchange. And you have to select the token to which you want to exchange. As I want to exchange the LINK token with the AAVE token so you can see it in the above screenshot. By putting the values which you want to exchange, simply click on the Review Swap option.

• In the above screenshot you can see that I can exchange 1 LINK token with 0.7856225 AAVE token.

So this is the way to swap any of the tokens with another token according to your desire or need.

Conclusions

Centralized exchanges are exchanges in which the users cannot trade directly with each other without the involvement of the central authority. Decentralized exchanges are exchanges in which the users can buy or sell their crypto-assets whenever they want without the involvement of the company. Uniswap is the best-centralized crypto exchange that works by linking with the Metamask wallet of different tokens.

So, that's all about today's homework task. Hopefully, all of you will like this post and especially dear sir @yousafharoonkhan will appreciate my work.

Special thanks to dear professor @yousafharoonkhan for his amazing lecture and looking forward to his reviews to my this homework task.

Thanks all.

Best Regards: @steemlover63