This week, professor @yousafharoonkhan touched upon a very useful topic. He asks us to answer the following questions as well.
He wants us to explain what centralized and decentralized exchanges mean.
He wants us to talk about the differences between centralized and decentralized exchange.
He wants us to write the 2 best central exchanges of 2021. He wants us to write down his reasons. He wants us to show any trade we make on the approved account.
He asks us to walk you through the installation of Metamask, a decentralized wallet.
He wants us to show you how the decentralized exchange Uniswap is used and any coin exchanges.

P

The professor wanted to push us a little bit to get a good grasp on the subject. I read the course article once again and now I am writing my homework.

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

Crypto coins entered our lives in 2009 with Bitcoin. Cryptocurrencies should have a value, a marketplace to be bought and sold. A few years after the invention of Bitcoin, cryptocurrency exchanges were created. These cryptocurrency exchanges created were centralized exchanges. So they were stock exchanges controlled by a center. On these exchanges, users can deposit cryptocurrencies and withdraw cryptocurrencies. In doing so, they should have obtained approval from the central exchange. There is no need for approval when trading. Trade is often done against users, and sometimes it is also traded against the exchange itself. There are addresses of your assets in central exchanges, but your passwords are not given to you. Therefore, they are also responsible for the security of your assets. I can make the following definition for central crypto money exchanges. '' These are the marketplaces where cryptocurrencies are bought and sold, where you need to get approval from the central structure for most transactions you will make on the platform. ''

Buying and selling cryptocurrencies on central exchanges is actually against the spirit of cryptocurrencies. Because it is against the working principle of crypto money and crypto money should not have a connection with central structures. However, we can see this as a transitional phase. There will be a transition from centralized exchanges to decentralized exchanges.

A certain group started to think. Why do we buy and sell decentralized cryptocurrencies on centralized exchanges? They realized that there was a contradiction here and started working on the creation of decentralized exchanges. Maybe they thought about this. First, centralized exchanges are established, then transition to decentralized exchanges. Buying and selling decentralized cryptocurrencies, on dcentralized exchanges would be very difficult at first glance.

I think this is the reason. Blockchain technology has developed and it is thought that decentralized exchanges should be formed. I can make a definition for decentralized exchanges. `` They are marketplaces where traders can buy and sell cryptocurrencies without any authority. ''

There is no need to be a member or authenticate to be able to trade on decentralized exchanges. Decentralized exchanges are interacted with cryptocurrency wallets such as MetaMask, TronLink. This wallet acts as a bridge. Traders can, for example, convert a token in a MetaMask account to another token on decentralized exchanges.

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)

(1) In central exchanges, generally the control center is the exchange. In decentralized exchanges, the control is entirely with the traders.

(2) You must verify your identity in order to trade and withdraw money at central exchanges. (Some exchanges do not need authentication and your limits are low). You do not need any authentication for decentralized exchanges.

(3) Commission fees in central exchanges are high. There are fewer commission fees on decentralized exchanges.

(4) Liquidity / volume is high in central exchanges. Liquidity / volume is less in decentralized exchanges.

(5) Central exchanges are easy to use. Decentralized exchanges are difficult to use. A cryptocurrency wallet is needed to interact with the platform.

(6) Centralized exchanges are popular because they were established many years ago. Decentralized exchanges are not popular because they are just being created.

(7) The reliability of central exchanges is not high. The central exchange owner can steal all your funds. The reliability of central exchanges is high. No one can steal your assets as long as you can protect your password well.

(8) You trade in central exchanges against users or against the stock market. You trade against users on decentralized exchanges.

(9) You can trade with real money, credit cards and cryptocurrencies on central exchanges. You can only use cryptocurrencies to trade on decentralized exchanges.

(10) Central exchanges may sometimes be closed for maintenance or we can use the stock exchange in a limited way. There is no restriction or maintenance work in decentralized exchanges.

(11) There are many types of cryptocurrencies that we can buy and sell on central exchanges. There are few types of cryptocurrencies to buy and sell on decentralized exchanges. Diversity is more in central stock exchanges.

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 )

There are two exchanges I use frequently. These are Binance and Huobi. I like to use but also the country I live in Coinbase Coinbase does not serve Turkey.

Binance: Binance is one of the most popular exchanges established in 2017. I chose it very much in 2021. My reasons for choosing it are as follows.

1. Steem Listing: I spend most of my day on the Steem blockchain. I can say that I am committed to Steem, I do my best for Steem's development. That's why it is important for me that the exchange I use lists Steem.

2. Volume: Binance is one of the exchanges with the highest daily volume. Since the volume is high, there are small differences between the buy / sell prices. There are big differences between buying / selling in stock markets with small and insufficient volume.

3. Customer Service: Binance customer service is highly relevant. They are willing to solve even the smallest problem.

4. Reliability: Binance exchange is one of the most reliable exchanges in the industry. They are constantly taking measures against security attacks.

5. Crypto currency diversity: A large number of crypto currencies are listed on the Binance exchange. I don't need to be a member of another exchange to buy or sell crypto.

6. Low commission: Those who have BNB on their account pay less commission fees on trading transactions. This aspect of Binance is remarkable.

As you can see in the picture, my Binance account is confirmed. I haven't done any trade in the last 24 hours but I want to make a trade symbolically.

For 14.15 USDt, I purchased 11,772 WIN, each of which is 0.0012023 USDT.

Another exchange I prefer the most is Huobi. Now I will explain why I prefer Huobi.

Huobi: It is one of the popular exchanges established in 2013. It is headquartered in Seychelles. Now I will explain why I prefer Huobi.

1. Steem Listing: Binance also lists Steem but unlike Binance, it lists Steem in USDT trading pair. Buying or selling Steem in USDT pair is an important advantage for me.

2. Fast Transfers: Transfers are very fast on Huobi stock exchange. When sending any coin elsewhere, Huobi completes transfers without waiting for the customer.

3. Coins Not on Binance: Many coins are listed on Binance, but some coins that are not listed are listed on the Huobi stock exchange. I buy and sell these coins on Huobi.

4. Volume: Huobi is an exchange with a high volume, although not as much as Binance.

5. Gifts: Huobi exchange occasionally sends USDT to customers' accounts as gifts. Of course, provided you meet some conditions.

My Huobi account is approved. In order to withdraw money from the Huobi exchange, your account must be approved.

Question no 4 :
Install Metamask, and share step by step screenshot ,(Practicle step by step )

Metamask is the cryptocurrency wallet users use to interact on the Ethereum blockchain. It only supports tokens running on the Ethereum network.

Step 1:
We log in to MetaMask via the Metamask.io web address. We click on the "Download" place on the top right.

Step 2:

We can download it to the Chrome browser, IOS and Android devices. I prefer the Chrome browser. Then click on the '' Install MetaMask for Chrome '' section below.

Step 3

We click on the place I marked.

Step 4:

MetaMask has been added to the Chrome browser as an add-on. Now it is time to fix MetaMask where the limbs are. Then click on the MetaMask logo.

Step 5:

Click on "Get Started" to proceed.

Step 6:

Now we have 2 options. We can restore our previous account from the place on the left. To do this, we need 12-word seed phrases that we had before. We can open a new MetaMask account from the place I marked on the right.

Step 7:

After reading the warnings, we click on the "I Agree" option.

Step 8:

We determine a password consisting of 8 characters, we confirm our password. We accept the terms and click where I marked.

Step 9:

We need to read the warnings in the picture thoroughly. When I click on the place I marked, a 12-word password will appear. I need to keep that password securely in order to regain access to the account.

Step 10:

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

Step 11:

We create the account successfully. We click on the place I marked at the bottom.

Step 12:

We were able to log into the wallet. We can interact with the exchanges shown in the picture via the MetaMask wallet.

You can also perform Swap transactions in the MetaMask wallet. For example I want to convert (trade) 1 ETH to Link.

I cannot perform this transaction because I do not have ETH in my account.

Question no 5 :
How to use Uniswap exchange , and Swap/buy or swap/sell any coin (practicle step by step )

BUY

Step 1:

We login to the Uniswap.org website. I'm sure this address is correct as I have used it before. We click on "Use Uniswap" at the top right.

Step 2

We make the necessary arrangements in the places I have marked. I will convert 1 ETH to 2180 BAT. To do this, I have to choose a wallet. I click on the "Connect Wallet" option.

Step 3

I choose MetaMask as my wallet.

Step 4

I select the wallet address and click on the marked place below.

Step 5
I click on the place I marked to go to the next step.

My transaction failed because there was not enough ETH in my account. I don't think it is right to trade on Uniswap due to the high transaction fee on the Ethereum network. In the Ethereum network, transaction fees should come to a reasonable level.

SELL

Selling on UniSwap is similar to buying. I will only change the token locations. During the purchase I tried to buy BAT with ETH. Now I will sell BAT, buy ETH in return.

Uniswap decentralized exchange understands that I do not have any tokens in my MetaMask account and does not allow me to perform the sell. It is necessary to log out of the MetaMask wallet to show the selling process. This time I will sell the BAT tokens I have purchased, I will buy ETH.

Step 1

As you can see in the picture, I marked all the details. I will sell 2169 BAT tokens. In return, I will get 0.99 ETH in exchange. To do this, I need to click on the '' Connect Wallet '' option.

I have to pay 6.57 BAT commission.

''Step 2''
I need to be connected to the wallet to make the sale.

''Step 3''

I select the wallet address and click on the place I marked.

''Step 4''

I click on the place I marked to move on to the next step.

The connection was established, but the sell did not take place as there were not enough BAT tokens in my account.

The commission for transferring BAT tokens from another exchange to the MetaMask wallet is high. Clearing in UniSwap is again commissionable. These commissions are high for small traders like me.

Conclusion

The professor examined an important issue in detail this week. Thanks to him, we learned the subject in the finest detail.

Decentralized exchanges are much more advantageous than centralized exchanges, but for some reasons they are not yet preferred. I think decentralized exchanges will become more popular soon.

Binance and Huobi are my preferred exchanges. I have shown an example of trading from both exchanges in the last 24 hours.

We need wallets like MetaMask to access / interact with decentralized exchanges. Soon most traders will have to use wallets like MetaMask.

UniSwap is the most popular decentralized exchange. I demonstrated how clearing transactions are handled on the UniSwap exchange.

Thanks again to the professor for this useful course.

Cc:

@steemitblog
@yousafharoonkhan