Steemit Crypto Academy Week 11: Homework Post for Crypto professor @yousafharoonkhan | Decentralized and Centralized Exchanges,How to use uniswap,best Cryptocurrency Exchanges of 2021
Hello, Steemians. I'm here again to learn from the crypto professors and I am happy that I've read the lecture of crypto professor @yousafharoonkhan and I would attend to the task associated with the lecture.
Definition of Decentralized exchange and Centralized exchange
Decentralized Exchange
In simple terms, decentralized exchange is regarded as an exchange that offers independence of transaction to users thereby eliminating the presence of middlemen in transactions. Every nodes of decentralized exchange works on their own without awaiting response from any central server and this enable users to make transactions like buy or sell without involving middlemen.
Centralized Exchange
Centralized exchange can be termed as an exchange with high liquidity and volume of assets which offers a platform whereby users have access to large pairs of assets and this enable users to trading various assets. In contrary to decentralized exchange, transactions on centralized exchange involves middlemen before users can complete any transaction and also involves KYC verification to be able to perform most of trading options on the exchange.
Decentralized exchange and Centralized exchange
| Decentralized Exchange | Centralized Exchange |
|---|---|
| More complex for users to navigate through | It's very easy for users to use |
| Liquidity is lesser when compared to Centralized exchange | Liquidity on exchanges is very high as there are thousands of asset' pairs that enable users to easily trade a pair of their choice |
| Users have their account private keys which put them in charge | Users are only allowed to create password while the exchange's authority keeps the private key to the account |
| No formal verification is needed before use | Some verifications are needed before users can fully explore the centralized exchange |
Two best Centralized exchange of 2021
Binance Exchange
Binance is with no doubt the best among the centralized exchanges at the moment and it's my favourite. Binance exchange was created by the CEO, Changpeng Zhao in the year 2017 and not long after the creation, Binance also created their own cryptocurrency (BNB). BNB initially worked on the Ethereum blockchain before it was migrated to own blockchain (Binance Chain). Some of the reasons I've chosen Binance as my favourite are; Low transaction fees, High liquidity and volume (Numerous trading pairs available), Binance is very easy to use, Binance allows me to stake my BNB to supply liquidity to farm other cryptocurrencies, ease of savings and so on.
My Verified account- Binance Exchange
Latest Transaction- Binance exchange
Huobi Global Exchange
Another wonderful cryptocurrency centralized exchange is Huobi Global which is an exchange that originated from China under the CEO, Leon Li in the year 2013. Huobi global has remained one of the best among the available centralized exchange that offers wide cryptocurrency trading that made available very large numbers of trading pairs for crypto investors. Huobi Global has their own crypto, Huobi Token (HT) with an equivalent price of 18.63 USD to 1 HT as at the time of writing this article. Why Huobi Global was selected as my second exchange are; It provides large number of trading pairs which gives it high liquidity, Transaction fees on this exchange is relatively cheap, Availability of discounted Point card that can be used to pay for transaction fees on each trade made and so on.
How to Install MetaMask
I am going to show the process of installing Metamask in the list of steps below;
- My Firefox browser will be used to install Metamask to my computer.
- Visit www.uniswap.org
- And selected "Use Uniswap" by the top-right of page.
- On Uniswap home, I have to select "connect wallet" to start the procedures involved in installation of the Metamask wallet.
- The next action is to click "Install Metamask" then next to "Download now".
- Next is to Download Metamask for Firefox.
- On the next page, I will have to click on "Install Metamask for Firefox".
- The next action is that I clicked "Add to Firefox".
- And I confirmed the action by clicking "Add".
- After Adding the extension, then I moved to click on Metamask extension to visit Metamask.io to import or create wallet. Then, I clicked "Get Started" on the next page.
- I selected Create wallet and I agreed specifications to proceed to the creation of account proper.
- The next thing is to create password (minimum of 8), re-confirm the password, check the box "I have read and agreed to the Terms of Use" and click "create". Secret Backup phrase is the next thing.
- Clicked to reveal Secret Backup phrase and clicked next.
- Confirmed the Secret Backup Phrase. The wallet was created and I hit the button "All Done" then to "Start swapping".
- Now, I have the swapping phase where I can select tokens for swapping.
How to Use Uniswap to Swap/Sell
- The first step is visiting Uniswap exchange app.uniswap.org/ through my Metamask wallet's browser.
- I connected the wallet to Uniswap.
- I have my wallet connected to the Uniswap exchange and the next thing is to switch to swap.
- Selected the token I will be exchanging my ETH for. I.e ETH - AAVE.
- Put in the amount of the ETH I am exchanging for AAVE.
- Then, I will proceed to swap the asset to get the desired output.
Swap page
Conclusion
Decentralized exchange has given the convenience of transacting in the cryptospace without the involvement of middlemen whereas Centralized exchange involves transactions (sell or buy) done with the involvement middlemen. It's great to learn from professor @yousafharoonkhan and also to have gained user experience.
First respected student Thank you very much for taking participate in Steemit Crypto Academy Season 2, Week 3 course class..
I have read your assignment very satisfactorily
you explained well, but you did not swap the coin on uniswap exchange that was necessary ,but over all your work is good, thank you very much for taking participate in the class
Grade : 6
Thanks for the review.