Wallets And Exchange
We are all too well familiar with the term wallet and exchange especially if we are here on steemit we must have heard the term even if don't fully grasp what it means but for most of us we do clearly understand, we know the concept of what we do in exchange and wallet though sometimes it can get confusing especially to newbies.
Sometimes we may not be able to clearly separate what is the difference between a wallet and an exchange in the crypto space.
Wallets are used mainly for keeping our cryptocurrencies safe and secure, we use it for storing of our crypto asset to ensure it's protection and a blockchain wallet is completely decentralized which means no one can gain access to it except us since in a blockchain wallet we are in charge of our set of private keys. While,
Unlike a blockchain wallet used mostly for safekeeping of our asset an exchange is used for actively taking part in the market buying and selling constantly trying to take advantage of the market volatility and make gains easily this is what we do with an exchange we trade with it one crypto against another and even a crypto asset against fiat currency and we can easily link our local banks to an exchange but unlike a wallet an exchange is centralized.
In an exchange we don't really possess our set of private keys but rather they are with the exchange who allows us exchange to our asset with a given password and they are able to know and monitor our accounts activities.
So clearly when it comes to storing of our cryptocurrencies a wallet is more preferable because we have the keys and hence we have absolute and definite control of the asset in it while an exchange is best for the intraday trading of cryptocurrencies.
In an exchange we also have a wallet inside but it's not as safe as a blockchain wallet which is decentralized because an exchange is centralized and controlled by a central server an any successful attack on that server will lead to a loss on our precious asset.
A wallet is also different from and exchange in that most exchanges can choose to delist coins at will at any time depending on their policy but that is not the case in a wallet.
So these are some basic difference between an exchange and a blockchain wallet, an exchange is basically for trading of cryptocurrencies while a wallet is to ensure the protection of our assets.
When it comes to fees an exchange charges us little fee when trading it all depends on the exchange we are using and the volume of what we are trading and if we trading one coin against another there is usually small fee being charged.
When it comes to fee a block chain wallets fee varies to me according to the crypto assets since a blockchain wallet is mostly used for storing crypto currency we could send and receive cryptocurrencies in our wallet, now while it takes no fee to receive sending out it's a different story we are being charged depending on the blockchain wallet let's say if we are sending BNB smartchain it will be lesser but if the transaction is through Erc-20 that's on ethereum network the fee is usually higher also depends on the amount we are sending.
Yes we can definitely have more than one account or even wallets it's up to us.
They are many crypto exchanges today like binance, bybit, kucoin, coinbase, huobi, kraken etc just to name a few and all this exchanges varies slightly in some aspects but generally used for same purpose though some more suited for crypto trading that's why I feel we should have more than one exchange.
We can have an account in multiple exchange as we want reason being that the service we don't see in this one maybe present in another and some pairs are not available in some exchange while other exchange may have it and different trading fees and different experience and interface, so in my opinion I believe for these reasons we should have more than one exchange atleast to have a chance to explore.
When we have used different exchanges it will give us better opportunity to know which it's the best and which is prefered in a particular area or not.
Personally I have an account in different exchanges like huobi, kucoin, binance, bybit, bitgate and roqqu too so yes and I like that its good really but the exchange I use more or visit often among them is binance because that's where I do most of my trading.
My binance and huobi account proof below.
Well ofcourse I would like to mention some reasons why binance is my preferred exchange;
Well what good thing I love about binance is there P2p trading this help me sell my asset and receive money on my local account so easy and faster.
Very easy to use and their binance lite feature makes it even more easier for a newbie to get around before moving to advanced mood
One of the exchange with the highest volumes traded per day, the exchange has massive liquidity
Low cost of trading
There is a wide variety of crypto asset to trade both on futures and spot or on margin.
Well that's very interesting but honestly if we are in to cryptocurrencies really, then we would know that we can't pick or choose between and exchange and wallet ofcourse granted we as individuals may have our preference depending on our interest.
Today many people I know don't really hold chucks of crypto asset but trade every day mostly Usdt pair now for this people ofcourse they would prefer and exchange like bybit or bitgate wholly for trading crypto derivatives while we also have others who doesn't really trade day in day out but believes in cryptocurrencies and it's longevity and wants to hold for long, do this person's they would prefer a wallet which would ensure their assets is safe while they go about their day.
So at the end of the day it all depends are we holders or intraday traders or do we do both.
If we are merely interested in trading the violatility in the crypto market ofcourse we would choose exchange over wallet but if we are long term holders and strong crypto ethusiasts a blockchain wallet would appeal to us more but for others who do both, trading and holding they know both are important.
Personally for me I feel both an exchange and a wallet are of use to us and need both to fulfill every purpose on the space.
I will be creating a kraken account and the steps are pretty easy and straight forward.
Like the images above depicts I lunch the app after downloading from goodgle playstore then I at the page there where it shows welcome to kraken I clicked on create account before since I didn't have one with them.
I input my email address on the next page then I input my preferred username which is favrite and then I out my choiced password which has to be atleast 12 characters long and contain one number and a special character with one capital letter.
Now after my password I choose my country which is Nigeria then I click on create account, was sent an email containing a code to verify my email which I did and my account was activated successfully and that was how I created th account, easy peasy.
Creating a wallet is quite easy, here I will be creating tronlink pro wallet, after lunching the app I clicked on create wallet instead of import then on the next page I input my account name or wallet name and my password and that's that, account created but then I will have to back it up.
So that's my tronlink pro account, this is a blockchain wallet on the tron trx network.
Indeed both wallet and exchange is of vital importance and it's good for us to know how to get around both as these will enable us to enjoy it and make use of both well to their full potential in our journey in crypto space.