Steemit Crypto Academy Season 3: Week1 |A world of Wallets and Exchanges , by @allbert | Homework done by @attiyasghar

Hello fellows. How are you all?

This is @attiyaasghar, here I am going to share my homework post on topic " A world of wallet and Exchange" given by respected professor @allbert

1- 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 (in terms of fees).

What is wallet ?

Wallet in crypto world is a application which provide safes to our precious currency. |In crypto world it is all about your valuable currency, and there is always a high risk to be get hacked, So high level of security eliminate the chance of hack. You can store your worthy holding in your wallet for a long time, also wallet offers some physical wallet.

Functions

There are some main functions of wallet are followings

• On the time of creating account on “Wallet” you have deal with“12 SeedPhrases”. It is the standard protocol which helps to safeguard your account on a high level.
• Multi-Currency Wallets can be add within this Wallet. In my case I’ve added Tron, XRP, Ethereum, BSC or Ethereum Classic and many more.
• Wallet has a “Dapp Browser” in it where you can have accessibility to the small exchanges, like “Pancake” and “Uni Swap”.
• You can sell and buy your digital currency from wallet to wallet & wallet to exchange.
• Wallet is divided into two categories according to their purposes. “Hot Wallet” and “Cold Wallet”.

Pros of Wallet

• You can Store your worthy currency for long term.
• It provides the advance level of security to our currency that can not be hacked at any condition.
• A Few small currencies that are not listed in “Coin Market Cap” you can sell and buy prior it will launch to market.
• You can “Stake” and “Unstake” your digital currency in pool.
• Wallet is basically split up into two types according to their purpose. Like “Hot Wallet” and “Cold Wallet” which is used for the hold currency practically.

Cons of Wallet

• A very terrible disadvantage of wallet is if unfortunately you lost your “Seed Pharses Keys” you will never be able to recover those keys over again.
• Like Exchange you cannot trade P2P instantaneously.

What is Exchange ?

Exchange is a platform which creates an association among the Currency Holders Worldwide. Here you can sell and buy your token ( Currency) at the moments. Furthermore exchange allows you to own a
that wallet will be less in level of security

Function of Exchange

• You can sell and buy your currency on the spot.
• You can hold your money for future and can trade when there is a wholesome rate.
• You can make P2P (Person to Person) transactions. Like you sell your currency to person and can get money in our account.

Pros of Exchange

• Every currency has their own charts
• Here you can read graphic statics for the currency fluctuations. Which currency is going downward trend and which is going upward trend.
• You can set a stop loss, where you can set a level of you desired amount. If a currency depreciating and hits that point, your currency will sell automatically.
• You and apply indicators on the chart, it will indicate the market’s fluctuation.
• There is reward center option it means If someone creates
• An account by giving your referral you will get reward on his/her transection.

Cons of Exchange

• Your holding currency is not in your control.
• There so many coins which not been listed in exchanges
• Some of exchanges where liquidity is too low which results high cost.

Deference Between Wallet and Exchange

Wallet	Exchange
There is involvement of Seed Phrases that make a trust that your account will be secure enough.	At the time of creation you are requested to provide some personal information ( KYC ) like your identity card, your passport, and Driving License etc.
Wallet is too secure like there is no risk to be hacked.	Wallet into exchange helps to hold your currency but it less secured
You can hold and store your currency for long term.	You can sell and buy currency instantly on the moment.
We can add more than enough wallets into our wallet.	In exchange you can trade with couple currencies.

2- 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?

Well first of all lets discuss about the security. As we know exchange is not as secure as wallet is. Keeping your all money in a single account is too risk as there too many advance level of hackers are int the market. Also there is a risk of losing password, one of my best friend just lost his password for bitcoin account now it has become very difficult to recover that password for her. It is the main cause we should need more than one account. Nonetheless having all eggs in one basket really suits here.

As I have already mentioned that there are some cryptocurrencies which are not listed on all exchanges, so having more than one account helps you find the currency which is more convent for you and you can make your trade very effectively

We know that the term liquidity plays an vital role in exchange when it come in the point of view fee cost. If the availability of liquidity is not enough so automatically transection cost will be high. So having more than one account reduces this kind of expenses, because you can go for the other account.

When we are newly welcomed to this community it is very easily to handle one account. But after wards when your portfolio reaches thousands of dollars so you have to need more account in order to handle your account.

3- What are better? Wallets or exchanges.?

Well as far as i know I prefer both of them according to their functions. The summarized function of Wallet and Exchange somehow similar to each other but are different as well. When it comes up with term “Trading” will surely go for the Exchange, because I can make Spot Trading, Future Trading and P2P trading. You are in association with thousands of currency holders so you can trade comprehensively, and top of that in exchange currency fluctuates every seconds so you can invest or can withdraw and can make profits in the while. These are some major points that encourage you to go for exchange

But In wallet case the main purpose to invest in wallet is its high level of security. If you are establish account holder with handsome currency. It always make you worry to secure your worthy currency. So need a carrier where you can store your money with having fear that might God forbids your will be hacked. As trust wallet offers Seed keys and account holder is only one who has accessibility of those keys. Furthermore as we know we can sell and buy the currency prior it will introduce to the market.

4- Create an account in a wallet and in an exchange of your choice and show screenshots of the process

First off all you have to visit official Trust walletyou can see a download option over there, But iam android user so that's why i select play store

• First of all i am going to play store and search trust wallet and press to install

• After installing trust wallet download in your phone .

• Open trust wallet app and Create a new account,

• After press the create a wallet button then new page will open select the privacy policy and press continue button.

*In the next step you can back up you 12 phrase . if you can lose you 12 word then you never access to your wallet.

• The next is verify 12 phrase and press continue.

• Congratulation you successfully create your trust wallet.

Right now i am create a account on account onBinance exchange . First off all you can go Binance official website

• First off all you can press the register now button

• After that you can put your information.

• And then OTP will send it to you email address

• After confirming OTP you have successfully Create Binance account. Next step is verify your KYC information.

• After verify KYC information that is first look of Binance wallet.

Conclusion

In this assignment we have learn the basic function of wallet and exchange.Their advantages and disadvantages plus the differences also indicates their importance. Both platform play a vital role in the world of blockchain. As wallet is the application offers store and security. And exchange is the application provide an association among the user where you can trade globally

Regard
@attiyaasghar