Crypto Academy Season 3 Beginners' course – HOMEWORK: Task 5: Dex, Cex, Popular Exchanges and Trading Cryptos //For Professor:@imagen //By: @zeeshanakram//

Hello steemians how are you. I hope you are all well. I am very happy that i am participating in the lecture of Professor @imagen which is about centralized and decentralized exchanges (DEX and CEX) was an impactful one. SO lets start:

Question:

Explain in your own words what an Exchange is. Differences between a Wallet and an Exchange. Mention the advantages and disadvantages of DEX and CEX. Have you used an Exchange before? tell us about your experience.

What is exchange?

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An exchange is just a way or place where people can trade. The stock market is more like a market where people buy and sell assets.In the world of cryptography, whether to shop using cryptocurrencies or fight for money to trade with different cryptocurrencies depends on how the exchange works. The money changer plays the role of a middle man between buyer and seller. By facilitating trading, they earn their wages on transaction fees.
Different cryptocurrencies can also be exchanged on the exchange. For example, 200 Steam values ​​can be exchanged with Wikipedia for the same value. Cryptocurrencies are also called Martial Currency. It is negotiable.

Kinds of exchange:

There are two kinds of exchange

1. Centralized exchange
2. Decentralized exchange

1. Centralized Exchange:

Centralized currency transactions, such as the traditional stock market. It is controlled by an individual or group, acting as an intermediary between the seller and the buyer. Central Exchange is always recommended for beginners as it is so easy. In a centralized exchange, more fees are paid during the transaction, this is the device that receives the fee platform.
Examples of Centralized exchange are (Binance, Bitstamp, Bitfinex).

2. Decentralized exchange:

Decentralized exchange is a very complicated exchange system. This does not include any third-party processes that lead to peer-to-peer transactions. It does not accept trading currencies for cryptocurrency transactions. An interesting aspect of decentralized exchange is that it is not anonymous at the highest level.
Examples of Decentralized exchange are ( Compound, BurgerSwap, Tokenlon).

Differece between Wallet and an Exchange?

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Exchange:

Exchange is fast. It costs less and avoids many problems. In the exchange process, the user can acquire digital assets or fiat money. Exchanges can be made from anywhere in the world and can be traded at any time. The exchange rate is lower than traditional methods. Currency purchases are made with the help of credit or cash cards or virtual wallets such as PayPal. The exchange does not have full control over the user's wallet as the central authorities enforce rules and regulations for the exchange.

Wallet:

A effective wallet is a scheme designed to store cryptocurrencies. Users can exchange cryptocurrencies stored in the wallet. In the modern world, people use virtual wallets to trade because they have trouble doing traditional trading methods anyway. Transactions with a virtual wallet are faster and easier. Virtual wallets are secure because traditional transactions cover several disadvantages. Wallets can store your cryptocurrencies. The private key in the wallet does not go to a central authority whose privacy is protected. The owner has full control over his wallet.

Advantages and Disadvantages of DEX and CEX?

Advantages of DEX:

1. Decentralized exchanges provide a high level of privacy and anonymity. Account details never appear.
2. Users' private keys are never backed up in the operating system, so there is usually no hacking of an account where the user discloses their private keys.
3. DEX offers peer-to-peer exchange without any third party involvement starting Monday.
4. Trading costs are lower than CEX.

Disadvantages of DEX:

1.DEX does not accept Fiat currencies for trading digital currencies, so it is a bargain for those looking to exchange Fiat currencies for any credit currency of their choice.

1. DEX is very complex, especially for beginners. Users are expected to continue this series and work well on this platform.
2. Dex does not have sufficient liquidity due to low trading volume because most digital currencies are traded on CEX as it is easy to use.
3. Unlike CEX, users' private keys in DEX are not backed up. If the user's keys are forgotten or lost, the user will damage all their assets.

Advantages of CEX:

1.CEX is especially easy for beginners.
2.In case the password of the CEX Platform backup users' personal information is forgotten, the user can easily recover it from the operating system.
3.CEX has high liquidity due to the large amount of songs.
4.Transactions are controlled in CEX, which makes it difficult for scammers to work independently.

Disadvantages of CEX:

1.Trading costs are higher than DEX.

1. CEX has its own third-party transactions, so there is no privacy between seller and buyer.
2. CEX is one of the victims of hackers and when the operating system is hacked, all users are affected.

Have you used an Exchange before? Tell us about your experience?

Yes i used it was Binance Exchange.
2 monts has passed since the beginning of the cryptography business. The first cryptocurrency I started with Ethereum. But before I started, I went through a series of training sessions with a friend who was more than willing to guide me on this corrupt journey. He worked hard and made some interesting bucks in cryptography and that's what made me happy. I met the binary exchange where I started trading.

1. Create account:

First of all i made my account on Binance i made my account on my mobile number and then after putting mobile number i set my password. See below

2. Login:

After that i click on login of this account. After login i see my tools in the account like Dashboard, security, payments. The mobile number was also showing on front on which i create my account.

Check Balance Details:

After That i see balance details and there were option of Spot and P2P.

Click on P2P:

By the way, I use P2P wallet to transfer my personal money to Binary Exchange. I actually used LDR (Pakistani Rupees) to exchange US dollars. After clicking on P2P i see option of Buy, sell and transfer. After that i see account detains where was option of enter amount. See below

My first experience with Binance was a great one making this exchange my favourite, although I would like to explore other exchanges over time. The first transaction I made at Benson was the sale of Atrium, which was very easy and fast. In fact, I got a loan in less than ten minutes. And with that experience, I became more and more confident in the exchange, and since then I say that I grew up in a truly corrupt world and am still open to learning.

Conclusion:

In this lesson, I needed to understand the different types of exchanges and the differences that arise between them, and this is about their process and also about other exchanges that can be used for trading, apart from the binaries I always use. While this
Finally, I say that any cryptocurrency trader should be familiar with two types of exchanges (centralized and decentralized exchanges) and whatever cryptocurrency he chooses should be traded on the exchange.

Thanks to Professor @imagen for this informative lecture.

Thanks to :

@imagen

Regards By:

@zeeshanakram