Crypto Academy Season 3 | Homework @allbert -Task 1: A world of Wallets and Exchanges| by @shahab1998

HELLO STEEMIT members, I hope you all are fine and doing well, so this is my homework given by the honorable professor @allbert, First of all, thank you so much, professor.

Crypto academy professors are doing their utmost to help steemit users learn about a variety of topics by sharing their expertise and information in order to help them make better use of this environment and helping us to not only learn but also enhance our skills here.

QUESTION 01: Explain differences between wallets and exchanges as well as mention which operations should be performed in an Exchange and which operations should be performed in a wallet

WALLETS:

Just like real world, In cryptocurrency there are also wallets which are made to keep our coins safe and secure. Wallets can also be used to transmit and receive tokens from different wallets. Wallets are built to maintain our tokens safe. It stores all of your assets/token information and is the safest place to keep your tokens.
There are mainly two types of wallets. One is Hot wallet in which the wallet stays connected to the internet means it is always online and the other one is Cold Wallet which is more secure than the hot wallet as this wallet is mostly offline and not connected to the internet.

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EXCHANGES:

After Wallets, Let's discuss Exchanges so basically, Exchanges are one of the essential apps in cryptocurrency which allow us to convert our crypto cash into cryptocurrency. You can't control the exchange because you're in charge of your wallet that's why wallets are deemed far secure than exchanges and that's the reason people still prefer Wallets more than these exchanges although all buying and selling are happening on these exchanges that's why exchanges play a vital role in cryptocurrency.

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DIFFERENCE BETWEEN WALLET AND EXCHANGES:

• One of the main differences between wallets and exchanges is different blockchain networks can be readily added to our wallets while in exchanges we can only add those coins which are currently registered on that exchange.

• Another big difference and plus point of Wallet is that wallets are far more secure than exchanges, Exchanges are also secure but wallets are more secure than exchanges.

• Wallets are less interactive and has less user-friendly application and there interface as compared to exchanges.

• Another main difference between Wallets and Exchanges is that transfer speed in wallets is very fast while transfer speed in exchanges is slow as compare to wallets.

• Exchanges are mainly used for buying and selling of cryptocurrencies while Wallets are used to save assets and tokens.

• Key in Wallets is really important if a person loses his key so he will lose his access to his wallet while Exchanges can be recovered easily.

• Another difference is that exchanges are used for daily usages while wallets are used for term storage.

OPERATION PERFORMED IN EXCHANGES AND WALLETS:

The operations that are commonly performed on exchanges is buying and selling of coins and also the charges which are deducted by exchanges are very expensive which a user has to pay to the host and reason of this is that exchanges are centralized which means managed by an authority so therefore commissions were added to each transaction. As a result, swaps are more expensive.

The operations that are performed in wallets are mostly they are used for storage purposes, assets are easily stored in wallets, and are much more secure in wallets than in exchanges which a plus point of wallets. Also, Wallets are also used to conduct digital money transactions. Wallets have a private key which is a level of security but if it is lost so you cannot access your wallet.

Question 02: In your own words, Why You think people should have more than one exchange account?. Do you have an exchange account? and Why that specifically?

According to me, people should have multiple exchanges accounts and this is very common. There are multiple reasons why people have many exchanges accounts. Reasons are few exchanges have transaction fees very high as compare to other so user mostly shifts on that exchange who is offering low transactional fees.

Another reason is there are many exchanges which only deals with those coins which are registered on it, so let's take an example of Binance Exchange, we can only buy and sell those tokens which are registered on it, If a person wants to buy newly launched token so he has to use another exchange like Trust wallet to purchase that respective token.

Another reason of having multiple exchange account is security, as exchanges are less secure so people usually prefer those exchanges which are more secure and people transfer there funds and asset onto those coins which offer more security as safety is of the most important factor.

I mostly use Binance as my main exchange, one is Binance Exchange is one of the most commonly used exchanges. I usually use Binance but when I want to purchase newly launched coins or want to purchase penny coins so I use trust wallet for it.

QUESTION 03: 3- What are better? Wallets or exchanges.?

Wallets and Exchanges both have their positive and negative aspects, Exchanges are commonly used for daily usage and trading while Wallets are used for long-term investment and saving of assets.

Wallets are best for those who wish to keep their assets safe should utilize a wallet, which is a secure tool for holding digital currencies. while on other hand those people who trade on daily basis Exchanges are best for them especially the exchange which is mostly used is Binance Exchange it is best for trading and buying and selling of cryptocurrency.

And if we talk about security so as discussed above wallets are more secure than exchanges because they have a private key for the security of wallets and this is also a plus point of wallets.

It's impossible to distinguish between what's excellent and what's awful. I don't believe that one is better than the other; both have positive and negative qualities but I choose and prefer Wallet more than exchange because of its security, low transactional fees, and high speed, And I will prefer wallet over exchange any day.

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QUESTION 04: Create an account in a wallet and in an exchange of your choice and show screenshots of the process.

I am choosing Trust Wallet and creating an account on it, Creating an account on Trust Wallet is very simple and easy. You just have to install it from Google Play Store/ App Store and then open it. Open you will open the application this below screen will appear with two options. Select "Create New Wallet" .

After that a screen will appear with terms and conditions mark it and press continue.
Then enter those special keys in the box which were given before this screen.

After that, we will get a pop us that WALLET IS SUCCESSFULLY CREATED

And in this way wallet is successfully created.

Now, the exchange I am choosing is HOTBIT exchange, creating an account on this exchange is very simple and easy just follow the below steps.
Open Hotbit app, in the sidebar there will be an option of CLICK TO LOGIN,

After clicking that option, below there is a create account option select it.

Enter Email, password, and confirmation code in it and then press Register.

Then it will send verification code to verify it.

After verifying the code account will be created successfully as shown below.

CONCLUSION:
Professor @allbert Thank you so much for this wonderful and informative lecture. This lecture helped me clearing my concept about Wallet and exchanges as we know that both platforms carry hazards, and we must constantly be willing to take risks but with that, we must consider Exchanges for trading and buying and selling, and for long term saving we must use Wallets as they are more secure and safe.

That's all, This is my homework professor @allbert I hope you like it, and once again professor thank you so much for this informative lecture, This post is totally plag free.

Please share your valuable feedback.

@allbert
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