STEEMKIDS CRYPTO WEEK 5 | CRYPTOCURRENCY WALLET AND EXCHANGES ASSIGNMENT | by @jabuking04

Hello amazing members of Steemkids, I am glad to participate in the crypto academy this week.

DISCUSS AND EXPLAIN EXCHANGES IN YOUR OWN WORDS. GIVE EXAMPLES.

An exchange is like a market where trading and exchange of digital currencies take place. But here, the market is in a digital form. People come to Exchanges to buy or sell cryptocurrencies for other cryptocurrencies or maybe for fiat money.

With Exchanges, you can change your fiat currencies into cryptocurrency or you can change your cryptocurrency to fiat currency and move it to your bank account. Some Exchanges may allow a person to buy cryptocurrency only and will not permit withdrawal of cryptos to your wallet, while others may permit that.

Examples of Exchanges are Binance, Coinbase, and Kraken.

LIST THE DIFFERENCES BETWEEN A WALLET AND AN EXCHANGE?

There are a lot of differences between a wallet and an exchange and they include:

• A wallet permits you to store all your cryptocurrency safely while an exchange permits you to buy and sell cryptos or even change fiat currency into digital currency.
• With wallet, you are in full control of your private key, while exchanges do not permit you to have full access to your private key.
• Wallets generally do not contain features that allow you to buy or sell Cryptos or even trade on them, but exchanges offer such features.
• A wallet owner can access his wallet at anytime, but an exchange platform may be down due to maintenance and when the platform is down, the user cannot access it until when the platform is up again.
• A wallet user does not need to be known because he does not need to identify himself, but in exchange, you have to identify yourself.

LIST SOME SIMILARITIES BETWEEN AN EXCHANGE AND WALLET ( GIVE AN EXAMPLE OF A WALLET THAT HAVE SUCH SIMILARITIES)

• Just as you can use your wallet to access your cryptocurrencies and keep it together, you can also use your exchange to do that too.
• Just as an exchange allows one to trade, sell or buy Cryptos, there are some wallets that can allow you to swap your coins and even do staking which can earn one interest from doing those functions.

An example of wallet that has such similarities is Coinbase wallet. We also have Pandora's wallet.

CONCLUSION

I have been able to know the major differences between wallets and exchanges. And the knowledge is worth it.

I am very grateful to @benton3