Reference

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

Explain in your own words what an Exchange is

This is a website or digital platform that is normally authorised to exchange your cryptocurrencies for fiat money and vice versa, with the purpose of maximising profit in each transaction while keeping to the supply and demand principle. Other people do not intervene in these transactions, implying that it is a whole chain interacting with your values. As a result, the platform must provide security and trust for users to have a positive experience with all of their transactions.

Differences between Wallet and Exchange

Reference

It's easy to tell the difference between a wallet and an exchange. The distinction is that wallets are used to store cryptocurrencies that we already hold, whilst exchanges are websites or authorised digital platforms that allow us to create exchanges for fiat money or vice versa. The numerous sorts of wallets are another characteristic worth considering.

The scope	Exchange	Wallet
Beneficial	Carry out business transactions ( sale and purchase).	Our cryptocurrency can be saved and managed.
Functions	Having a bank account on the internet	It is used to store cryptocurrency..
Type of Connection	Some folks may not require internet access (Cold wallet).	The use of the internet is always essential.
Reinstate password	We have the capacity to store it.	We are unable to store it.
Your personal property	Exchange is in charge of our funds' storage and management.	The owner of the wallet is also the owner of the assets.

Advantages and Disadvantages of DEX and CEX

CENTRALIZED EXCHANGE (CEX):

It is a financial transaction in which the actions are controlled by trustworthy third parties, namely the fund managers, who are in charge of the conversations. This means there is no privacy when trading; instead, an entity will act as an intermediary, necessitating the necessity for and importance of trust.

However, before that trust can be established, the user must first complete a set of tests that will create the necessary scopes.

Advantage	Disadvantages
It's easy to use.	It is in charge of a centralised system.
There are several trading options available.	.There is no such thing as privacy.
It has a high liquidity level.	Hacking is quite likely in this situation.
You'll need fiat money to purchase crypto assets.	The commission may paid.
••••	All cryptocurrency will be stored by a trustworthy third party.

DECENTRALIZED EXCHANGE (DEX)

Because transactions are conducted from person to person (P2P), unlike the CEX, there are no third parties in the DEX. This means that no tests are required to establish confidence because privacy has already been established. In general, these exchanges are set up on a blockchain network utilising a smart contract.

Advantage	Disadvantages
Your cryptocurrencies are completely under your control.	Its use necessitates knowledge.
Privacy is necessary to carry out operations.	It has fewer operational possibilities.
The commissions are really low.	Both supply and demand are constrained.
There are no middlemen in this transaction.	•••
Improved security	••••
This is a safe and secure exchange.	•••••

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

I had no experience with exchanges or anything else related to cryptocurrencies prior to joining Steemit; nevertheless, owing to cryptoacademy's virtual classes, I have learned a lot and it has proven to be really valuable in my daily life.

My first transaction was completed in Orinoco (a fiat money payment gateway), and the truth is that I had no idea if what I was doing was correct because I didn't even know how to use the memo key, but I completed it satisfactorily, albeit at a very low price, and I felt like I had accomplished something incredible. When I returned a few days later to make another exchange, I saw that the price had gone up,

After a few classes, I had already managed to create an account on the Binance exchange, and it was truly a unique experience; I had the opportunity to break down the options one by one to become more familiar; it also has its own academy and chat for any questions that the user may have; it is incredible to be able to move around in that world where we can even choose the person with whom we will interact; it is incredible to be able to move around in that world where we can even choose the person with whom we will.

It's my Account

For the time being, I just use the Binance exchange, and while I still have a lot to learn, I am confident that with research, tasks, and practise, I will be able to accomplish.

Have a nice day

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Prof . @dilchamo

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