INTRODUCTION

Greetings to my steemmate and the entire admin of this community and our able professors, you are all wonderful, your work are of good report in return this entire steemit is moving forward. This is my beginners' achievement 7. Am happy have moved this far, have gain a lot of knowledge here which am happy about. My prayers is may this community continue to move forward.

QUESTION

3-) 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.

What is an Exchange

Cryptocurrency Exchange can simply be define as a web based platform or app where a particular cryptocurrency coin can be converted to another coin or Fiat currency.
Cryptocurrency Exchange act as a middle man between the buyer of cryptocurrency and sellers.
With the help of cryptocurrency, Bitcoin can be exchanged to steem or other cryptocurrency. They play a major role in the running of cryptocurrency because without exchange, swapping cryptocurrency will not have been possible.

Types of cryptocurrency Exchange
Basically there are two types of cryptocurrency Exchange.

• The centralized Exchange (CEX) this are Exchange with a central authority, they have a central wallet which all users asset are store into. Most of these exchange are website based which allow members to create account and register with their email and password. If there is lost of passwords, the central authority can help recover it.
  One major impediment of this type of exchange is that they can be hacked or manipulated by the central authority.
  Example of this type of exchange include: Binance, poloniex probit etc.
• Decentralized Exchange (DEX) this are type of exchange run through a blockchain app known as Decentralized app dApp. This Exchanges are decentralized in nature as they do not have any central authority, no central account to store users asset. But interact with users wallet to perform it's activities, thus individual asset are still inside individual wallet. A good example of this type of exchange are justswap, pancakeswap etc.

Different between wallet and Exchange

Let's start by giving definition to the two terms.
What is Wallets?
Wallet can simply be define as software or app created for the purpose of storing cryptocurrency coins and token. Since cryptocurrency are digital in nature, it can not be keep like the traditional currency, thus it need a digitally created software to keep and store it for future used and this is where wallet comes in.

What is an Exchange?
Cryptocurrency Exchange can simply be define as a web based platform or app where a particular cryptocurrency coin and token can be converted to another coin or Fiat currency.
The following are the major difference between a wallet and an exchange.

Wallet	Exchange
A wallet is basically for storing cryptocurrency	An exchange is basically created to swap coin or token
Wallet are Decentralized in nature. Individual are responsible for the security of their asset	Excenge are centralized in nature, there is central account for storing users asset
Wallet are secure with private Key	an exchange require just email and password for security.
Wallet are for both short and long time storing of asset	Exchange has wallet which can only be used to store asset for short period of time for security reasons.
A wallet is more secure	An exchange is less secure and can be hacked

Advantage and Disadvantage of DEX and CEX

ADVANTAGE OF DEX
1.DEX are transparent all DEX use blockchain public registry and open source to be sure the process and data are opened to all, so every transactions can be easily confirmed.

1. Transaction under DEX does not need any centralized Authority. thus the process are very fast as it only happened between two users.
2. DEX uses blockchain technology to keep its data,this mean all data on DEX cannot be deleted or manipulated. With this DEX is more secure than CEX.

Disadvantages of DEX

1. DEX are extremely difficult to create due to its nature it require many protocols to reach consensus. it thus require someone with high level of programming skills to create DEX. this serve as a major problem to the creation of DEX.
2. Application are mainly independent. It requires individual with good knowledge of cryptocurrency to operate or perform a transaction under DeX

Advantages of CEX

1. There is always higher liquidity on a centralized exchange compare to that of Dex.
2. Easy to operate and understand, a vest majority of users use CEX for this purpose. Most CEX are very easy to operate even for new members.
3. Due to the fact that they are the most popular Excenge, the have higher volume of trade compare to Dex
4. They offer different trading pairs
   Disadvantage of CEX
   Due to there large numbers of users and volume, CEX which are primarily week remain the sole target of an hacker.
5. Since there are actor who act as administrator and Moderators, the data and members asset can be manipulated. Infact there have been cases of volume manipulations by some CEX.
6. Dues to large numbers of user, most of the CEX may experience downtime or slow transaction.

My Experience Using an Exchange

I have used many of the top cryptocurrency exchange, most of my experience are good as I have not lost asset into any exchange. But there have been issued of high withdrawal fee, trading fee and delay in withdrawal even some upto 24 hours.
There are also some issues of rejected transaction on Dex. I believe all this issue can be solved in future.

Conclusion
Both CEX and DEX are good way of exchanging cryptocurrency, the offer similar service but little different in their operation.
Wallet is also important for storing asset for a long time. This class has also widen my knowledge on those areas.
Long live Crypto Academy