STEEMIT PAKISTAN CRYPTO COURSE SEASON 1 | BEGINNING OF THE BEGINNING: CRYPTOCURRENCY. WALLETS AND EXCHANGES | By @kinzaghauri
Hey Everyone!
Hope everyone is doing well. This is officially my first post on Crypto, and MAN, AM I EXCITED!!
Crypto Courses have never been my cup of tea and so it took a lot of learning to finally be able to start somewhere. This course by @naqshraja1 got me a very excited because it's exactly what a beginner needs to understand the basics.
So, Lets dive right into the topic:
BEGINNING OF THE BEGINNING: CRYPTOCURRENCY. WALLETS AND EXCHANGES
Questions
1.) What is the difference between Cryptocurrency and the traditional Financial system? What are the Pros and Cons of Cryptocurrency (Write atleast five)
Answer 1)
Crypto Currency
A medium of exchange, that is completely Digital and Virtual in all aspects.
The main difference, however, between the two systems is whether they are managed by Centralized or De-centralized structures. Conventional Financial System requires a third medium to be involved in the transactions done by the two parties, which limits and poses a lot of disadvantages for both the parties.
Cryptocurrency , on the other hand, does not require any 3rd party or anything for that matters. The transactions are done directly and immediately between the two parties. All of it is managed through a Blockchain.
| CryptoCurrency | Conventional System |
|---|---|
| -Virtual Currency | -Real Currency |
| -No intermediary required | -Intermediary Required |
| -Decentralized | -Centralized |
Pros and Cons of Cryptocurrency
| Pros | Cons |
|---|---|
| -Does not require a third Party for exchange | -Not Accepted everywhere |
| -Transaction can be done in minutes and even seconds in some cases | -Extremely Volatile in Nature |
| -No Transaction Fees or Taxes | -Potential for Greater Loss |
| -No Inflation | -Transactions can not be reversed |
| -Can be sent anywhere in the World | -Lack of Awareness |
2.) What are the objectives behind the creation of Bitcoin?
Answer 3)
-The first and foremost objective of bitcoin was to remove the intermediary from within the two parties.
-The conventional transaction takes a lot of time to transfer money, which was reduced to almost negligible while making of bitcoin and other cryptocurrencies.
-Banks charge you money for storing your assets and transferring money, which also changed and was one of the objectives for making bitcoin.
-Another objective of making bitcoin was ease of transferring money anywhere in the World.
3.)What are the differences between Wallets and Exchanges? Which is better in your opinion?
Answer 3)
| Wallet | Exchanges |
|---|---|
| -Block chain Wallet can be defined as anything where you Hold your Private Keys and Store your Assets | Cryptocurrency Exchanges can be defined as Platform where you can exchange your Cryptocurrency for another cryptocurrency by selling off the previous currency |
| -Examples: Exodus.io , blobkchain.com | -Examples: Binance.com , Coinbase.com |
| -Extremely Secure | -Comparatively less secure |
| -Can only store, not trade | - Can trade easily |
In my opinion wallets are a better option as they have high security and privacy. The coins are safer in wallet as they can not be de-listed from the wallet by any exchange rule.
4.) Create an account on Binance and show screenshots of the process(if you already have binance create an account on Poloniex)
Answer 4)
Open Binance.com and Click on Register
Conclusion
I would like to conclude by saying Cryptocurrency is taking over the world and soon each and every person will realize the importance of it. The ease and sense of security that comes with Cryptocurrency is something that we will never be able to achieve with Conventional Banking System.
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Hello @kinzaghauri, I’m glad you participated in the 1st Week of Steemit Pakistan Crypto Courses. Your grades in this task are as follows:
Recommendation / Feedback:
This is good work but you have not used proper markdowns in this post. Also you have not mentioned atleast 5 differences. Always mention atleast 5 differences, pros and cons etc. Nevertheless this is good work from you.
@naqshraja1
Steemit Pakistan Crypto Courses
Would keep these things in mind for the next one. Thank you