Crypto Academy / Season 3 / Week 1 - Homework Post for [@allbert] …Wallets and Exchanges
Am glad to be part of your class @allbert you have really made the homework more simple with your details explanations.
Answer to question 1:
Wallet: Just as the name implies, a wallet is an app or device that allow crypto currency users to store their asset safely. A wallet gives it user the full responsibility of the security of their asset by issuing seed phrase which can be used to retrieve your wallet on a new device.
Exchange: this are platforms that allow cryptocurrency users to trade their asset from a particular coin to another e.g steem to btc.
In other words, exchange are business organization that facilitate the conversation or swap of asset from one coin to another by charging a small fee.
An exchange allow it's member to create profile and thus assign wallets or memo to those profiles or account, this mean in each exchange account, there are also wallets to keep asset for a short period of time.
Difference between wallet and Exchange: The following are the different between wallet and Exchange.
- Wallet: this is use to store coin or token
Exchange: is use to swap or convert cryptocurrency a particular coin to another coin or token. - Wallet: you have full control of your asset
Exchange: you have a minimum control of your asset. - Wallet can be used to store asset for a long period of time
Exchange: should be used to store asset for a short period of time. - Wallet is decentralized in nature because is has no central authority,
Exchange is centralized with a central authority which monitor all your activities - Wallet this is fully secure and can't be hack unless you reveal your keys
Exchange this is not fully secure as there have been many report of hacking of top Exchanges over the years
Answer to Question 2:
Why I think people should have more than one exchange account:
There are good numbers of coins and tokens in the blockchain world, these coins are all looking for a favourable market and exchange, in a real sense, no single exchange can list all the available token and coin in it's platform, having this in mind a user who which to trade btc/sbd, trx/steem will have to have account with an exchange who have listed sbd, btc, trx and steem, main while finding a single exchange that lists this coins may be a huge task or mostly living a user with no option other than to have more than an exchange account.
In my own case, I have more than a single exchange account because I trade many coins, I love using Binance Exchange to trade my Steem to BTC and ETH while I love polonix Exchange for my trx to BTC due to their good volume and flexibility.
Question 3:
What are better? Wallets or exchanges.?
Evaluating the best out of Wallet and Exchange will be done base on security and function.
Security: When it's come to the issue of security, wallet gives more security than exchange, because an individual is responsible for the security of their asset but this case is opposite when it come to Exchange account, an hack in an exchange account may cause a lost of asset
Function: Exchange has a dual function which give it a better chance ahead of a wallet, an exchange account can serve the purpose of trading and holding, for a user who is looking for a short time holding of an asset, and at the same time what to perform some trading activities, an exchange account may be a better option.
Question 4 answer
How to create a wallet
For this purpose, we will be using trust wallet.
To create a trust wallet account, you will need to download trust wallet from play store,
Open the app and click on "create new wallet"
Click the box to accept the terms and conditions
The next screen show you the wallet recovery phrase, the words in most cases are 12 words. Kindly write down the words and keep it and click ''next". In the next screen repeat the words and click continue,
If you get the above, congratulations you now have a wallet.
How to create an Exchange account
For the purpose of this assignment, I will be giving a step by step guide on how to create a LaToken Exchange account on mobile phone.
To create Latoken Account, you will first need to download the Exchange app on play store, after successful installation, open the app on your phone to the main menu and click on login/ create account as see below
In the next screen, enter your valid email address, make sure it is entered correctly because ba code will be sent to it for verification
The next stage will require you to create a password, as seen below, do use a secure password that contain at least 1 uppercase, 1 Lowercase and 1 Number, repeat the password in the next Box and click on "sign up"
The next step will ask you to confirm your email, by now a code must have been sent to your email address from Latoken, open the mail and copy the code, then come back to your Latoken app to paste it as seen below and click continue
The new screen will require you to create a 4 digit PIN which will serve as additional security to your password, enter the pin of your choice and repeat the pin in the next screen and click on "sign up" as seen Bellow.
The next screen will display your account home screen as seen below, congratulations you now have an exchange account.
Conclusion: The importance of both wallet and exchange can not be underestimated in cryptocurrency world. They are both important and useful in there own domain, and every one in crypto currency must have the basic knowledge of the two.
Thanks.
Hi @ unyime thanks for participating in the Steemit Crypto Academy season 3.
Finally question four was well developed, with all the screenshots you used. However, remember that the images we use must be well referenced with the link to the site where they come from.
Thank you very much. Hope to improve next time.