Dex, Cex, Popular Exchange and Trading Cryptos - Steemit Crypto Academy Season 4 - Homework Post for Task 7 By@prolee || #club5050..😃

Introduction

Exchange is very important when it comes to cryptocurrency in that an individual will always love to physically handle his or her asset and this can be done by swapping or exchanging it to fiat or physical currency.

Questions

>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.

Explain in your own words what an Exchange is.

Source

Exchange has so many meaning due to the fact that it can be used in so many ways to mean different thing and for different purposes. But, in relation to cryptocurrency exchange has to do with the ability or process in which a trader is able to trade his or her assets. By this, I mean the ability of the trader in buying and selling of assets when it is favourable for him or her.
Exchange to trader, mostly is all about getting assets when the price is low and selling when it is high to make gains or we can say it is buying of assets when it is in dip then sell it out when the price rises or pump which is always very interesting.

We can also say that exchange is all about swapping or substituting token to make great benefit, it can also be said as to be a situation whereby trader trade their assets digital to fiat currency.

We have 2 types of exchange which are very importan; the centralized exchange and the decentralized exchange. I will briefly explain it.

• centralized exchange.

Has to do with the exchange that has a third party involvement which monitors and assist the individual during transaction and sometimes the one to approve the transaction before it can be executed.

• Decentralized exchange

Unlike the centralized exchange, here there is no third party involvement in performing transaction, no approval needed by anyone.

We also have advantages and disadvantages of exchange to clearly see how it is impactful to the society

Advantages of exchange

• Exchange is very important to trader and it plays a great role such as helping the trader to be able to swap from digital assets to fiat currency and can use that to solve immediate problem.
• Help trader to make more profit, buying when the assets price is low then selling when the price pumps or rise.

Disadvantage of exchange

• Always bad when you put all your hope in the asset and it keeps dipping or depreciating, it can affect the trader psychologically and should emergency arises the trader will run at a lost.
  
  
  

Differences between a Wallet and an Exchange.

S/N	Wallet	Exchange
1)	Wallet is a place where trader save their assets and by this it means the assets is not to be traded	In exchange, it has to do with the ability of the trader to trade his or assets for profit making.
2)	Decentralized in nature which means there is no third party involvement or intervention during or when the individual is performing transaction	some exchange are centralized others are decentralized which means some there is no third party involvement while to others there is.
3)	Assets are being saved in wallet as digital assets no changing or trading	Assets can be swap or change to physical money.
4)	The security level here is high which means the individual assets is safe, no need to panic	Some have strong security system while others don't
5)	In term of staking, an individual will not be able to perform staking in wallet	In exchange, staking is supported.
6)	Private key is not shareable and is own by the individual	Third party can access your account any moment he feels like.

Mention the advantages and disadvantages of DEX and CEX.

Advantages of Centralized Exchange

Source

• There is involvement of third party here which means if the individual encounter any issues there is someone to attend to him or her.
• Here, the individual is limited to transactions which mean it also helps the individual to manage assets because he will be limited once he exceed his limits.
• This type of exchange is simple and easy in that the individual can easily perform transaction by entering the banking hall and do whatever transaction he wants.
• Can be done by all in that the individual does not need to have knowledge about cryptocurrency before using.
• An individual can easily retrieve and recover wrong transaction should the individual makes a mistake during transaction with the help of KYC.

Disadvantages of Centralized Exchange

• The security level here is very low because you are dealing with human and your transaction is being monitored, it may even be monitored by your enemy.
• The rate at which individuals are charged during transaction is always high imagine being charged for sms, card maintenance etc.
• You don't have any privacy here since there is a third party that knows the transaction that takes place in the account.
• The individual trust level here is low because he knows that someone is monitoring his or her transaction.
• There is always time wastage it may be due to bank network or long queues in the bank which may take time before it reaches your turn.

Advantages of Decentralized Exchange

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• The security level here is high, in that you are the one that control your account and transactions is being performed at your will.
• The rate at which individuals are charged during transaction is always low no matter how big the coin volume is.
• You have privacy here since there is no third party to know the transaction that takes place in your account.
• The individual trust level here is high because he knows that nobody is monitoring his or her transaction.
• There is always no time wastage.The speed at which transaction is performed here is very fast.

Diadvantages of Decentralized Exchange

• There is no involvement of third party here which means if the individual encounter any issues there is no body like third party to attend to him or her.
• Here, the individual is not limited to transactions which mean the individual can spend the funds anyhow and at his will.
• This type of exchange is not simple and easy to perform in that you need to be conversant with it, if not very hard for you.
• Can not be done by all in that system since the individual need to have knowledge about cryptocurrency before using.
• An individual can not easily retrieve or recover wrong transaction should the individual make a mistake during transaction because there is no third party.
  
  
  

Have you used an Exchange before? tell us about your experience.

Yes, I have and the name of the exchange is roqqu

[Screenshot from roqqu application]

To me roqqu is an interesting exchange application in that, I can use it to perform all of the things which I will be explaining;

• Deposit
  In roqqu you can deposit using your credit card and from there you can use it in purchasing any coin of your choice.

• Withdrawal
  To withdraw in roqqu you must have a raven account which you will always withdraw the money to. All you know is put your Raven account name and the money will be cash out to your raven account. Other methods listed are not yet supported
  

  
  
  [Screenshot from roqqu application]
  

• Buying and selling
  Here you can buy and sell coin.

• Coinswap
  You can also swap coin here from one coin to another
  

  
  
  [Screenshot from roqqu application]
  

• We also have price alert, you can exchange coin to airtime, you can save your coin and there is also a space for history in which all your transactions are recorded.

• The circle space is for you to chat with a customer care incase of error or issues.

• We can use this exchange application to deposit and withdraw cryptocurrency just to copy the receiver address and the sender address depending if you are sending or receiving.
  

  
  
  [Screenshot from roqqu application]
  

It is a very cool exchange application since it pays very fast without delay and have a standby customer care.

Conclusion

The lecture is very educative, it has really made me know and understand what exchange and wallet is all about, not that alone also the 2 type of exchange which is very important.

Thank you @dilchamo

#club5050....😃