Good evening Professor @yousafharoonkhan, decentralized and centralized exchanges, have been a fundamental topic in the world of cryptocurrency exchanges, so I have followed in his footsteps in his lessons. Here is my homework for week 3.

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

They are exchanges that work with cryptocurrencies and the Bolckchain through smart contracts. When a person who owns cryptocurrencies and want to make a business of coin exchanges do it directly with the person who will do the business of buying or selling exchange, no intermediary is needed. Only the seller and the buyer negotiate at an agreed time. Eliminating the risk of bankruptcy or currency theft. The exchange is in charge of making the decision of the results of the negotiation. When the negotiated exchange is going to be made and person A does not start the negotiation, the contract returns the negotiated cryptocurrencies to person B. In other words, the ownership of the cryptocurrencies is not lost.

Centralized Exchange

They are exchanges that also work with cryptocurrency exchanges. It allows to exchange with other resources, the negotiations that are made at the exchange rate of the moment, are stored internally in a database and are under a private key that the exchange has in the blockchain. There is no real access to our cryptocurrencies, that is, the exchange functions as the middleman. There is now an intermediary that must be trusted to handle our cryptocurrencies. In case of coin theft or the company goes bankrupt there is no defense of your coins, i.e. there is no security.

Question no 2 :

Explain in your own words the difference between decentralization and centralization exchanges (answer should related exchanges ,not over all system.. (answer must be written in oun words, copy paste or from other source copy will be not accepted)

One of the main differences between decentralization and centralization exchanges is centered on the presence of an intermediary at the time of conducting a business or a transaction. The security of our business depends on the presence or absence of this intermediary. The Centralized Exchange has an intermediary that is the Exchange itself, therefore the negotiations between the seller and the buyer are not secure due to the possible hacking or bankruptcy of the company. While in the decentralized Exchange people are owners of their cryptocurrencies, in this way when they do their business of cryptocurrency exchanges they do it directly with the people who want to make the negotiation of buying and selling, that is to say, they do not need an intermediary. Their business is more secure.

Other differences are: In order for a person to join the Centralized Exchange they must undergo KYC (Know Your Customer), i.e. this promises security, assurance and meet standards. A verification process is carried out to avoid corruption terrorism etc. e.g. Bitfinex, Bittrex, Bittrex. Bitfinex, Bittrex. In the Decentralized Exchange you operate without these cumbersome requirements, and 24 hours a day at any time. As an example we have the Decentralized Exchange Bitsquare, EtherDelta, which you do not need to register to start using it.

It is also interesting to refer to volume as a difference between these two platforms. Volume indicates risk and also goes hand in hand with liquidity, the higher the volume the exchange and liquidity providers make more profit. As for the volume of the Centralized Exchange, the trading volume is high as well as the liquidity, while in the Decentralized Exchange, the volume and liquidity is increasing, many users today request the decentralized platform.

Question no 3 :

write about any 2 best centralised exchanges of 2021 . why are they best in front of you? (Show screenshot of your verified profile to make verify that you are really using them, or also share any one trade that you made in last 24 hours ).

The 2 chosen were: Bittrex and Binance.

Bittrex is a centralized US exchange, operating since 2014. It has a high volume of supported cryptocurrencies. It also works with fiat money. Its disadvantage charges high fees 0.2% per transaction.

Consider that, Older people and retirees have somehow been involved with technology and many are willing to face innovation, it also offers security when you do not want much risk.

Bittrex is a centralized US exchange, operating since 2014. It has a high volume of supported cryptocurrencies. It also works with fiat money. Its disadvantage charges high fees 0.2% per transaction.
It considers that, Older people and retirees somehow have been involved with technology and many are willing to face innovation, it also offers security when you do not want much risk.
I also found it interesting, because it is managed with the Steem cryptocurrency, with which we are familiar.

Binance is one of the most important, although I have no experience in it, I can notice that it has many favorable and attractive functions due to the diversity of cryptocurrencies it has. It is also possible to manage with fiat currencies.
I am in a learning process that I find it interesting and make any investment in the platforms, but my capital is still not enough yet. But I do like these platforms to manage them in the near future, this motivation and knowledge I am acquiring with the academy.

Question no 4 :

Install Metamask, and share step by step screenshot ,(Practicle step by step )

• Step 1.
  Through CoinGecko, I search for the website to install Uniswap (V2), under "Decentralized Exchange (DEX)".

• Step 2
  When you open it and click on Connect Wallet, the option to install MetaMask will appear.

• Step 3
  This will be saved as an extension in Google Chrome.

• Step 4
  Proceed to install and add to Chrome

• Step 4
  We are welcomed to MetaMask where we are made aware that it is a decentralized website.

• Step 5
  We create a coin purse.

We are asked to create a password

It asks us to create a password and then shows us the source of liquidity among them, Uniswap.

• Step 6
  We can now exchange any token.

Question no 5 :

How to use Uniswap exchange , and Swap/buy or swap/sell any coin (practicle step by step )

The exchange I can show you up to this step, as I do not have the funds to show you a real example. I would have liked to make it concrete.

CONCLUSIONS

There is currently a large number of users requesting the decentralized exchange platform, which indicates that it has been growing in recent years.

Centralized exchanges are still good, but some features make them insecure and with little privacy.

It was a pleasure again to participate in your task, thank you very much for contributing with knowledge in this wonderful initiative as Crypto Academy is.

Greetings and blessings.

@suralla