e,Crypto Academy Season 3 Week 1 Homework Post for (@allbert) - A world of Wallets and Exchanges by @bibsonhabib

Greetings steemians, in this homework submission post, i will be writing about wallet and exhange platforms. A homework post by professor @allbert. Lets get started.

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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 a Wallet?

In cryptocurrency terms, wallets are entities used to store or hold cryptocurencies. They maky be offline or online. They entail two types which are hot and cold wallets: where hot wallets are managed online and yhe cold offline.

Exchanges

In the cryptocurrency context, exchanges are platforms used to trade cryptocurencies. Most have options to buy and sell cryptocurencies. They also have online wallets to hold cryptocurrencies. Examples are binance, houbi, kraken etc.

Differences between exchanges and wallets

●Exhanges have low security levels whiles wallets have high level of security

●Exchanges demand most of your personal details and have some control over your wallet whiles in wallets you have control over your information and personal funds.

● Most exchanges used for the transfer and trading of cryptocurencies whiles wallets are used to store and hold cryptocurrencies.

●Recovery of logins or passwords are easy on exhanges whiles wallet passwords are not or very difficult to recover.

● The major use of exchanges is for trade or business, whiles wallets are used for safekeeping or holding of cryptocurencies for the long term.

● Exhanges are user friendly and there have user friendly interfaces. Wallet interfaces are bit complex.

Operations on exchange platforms

In exhanges platforms users deal with one or different cryptocurreny and earn profits by either joining a mining pool or investing in a particular cryptocurency. Some exchanges also provide leverages by which users can maximize their gains.

Operations on wallet platforms

The main aim of most users of a wallet platform is to get a very safe platform to store their crypto assets. This safety is somehow guaranteed since wallets provide private keys to its users, which is to be used to gain access. These keys are unique and no two are the same.
There are numerous examples of wallets ranging from mobile wallets, desktop wallets, hardware and web wallet, with hardware wallets been the safest to store cryptocurencies and also the most expensive among the four. Its fees starts at $100 and can go to as high as $200. These expensive fees enable the wallet service providers to provide the needed security for their crypto assets

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?

The importance of having more than one account are iterated below.

Security reasons

Using more than one exchange platform would ensure the secuirity and secrecy of crypto assets. Hackers would find it difficult to track your funds as they are diversified. The secuirity of funds are also guaranteed incase there are any secuirity lapses in one exchange platform.

Low fees

Some exchange charge little or no fees on transactions performed using their platforms.
An example of such exchange is binance. This is very helpful to beginners in the cryptoworld.

Low market price of assets on some exchanges

Prices of assets on some platforms are low as compared to others. This low prices enable investors buy at lower prices and make profits when the crypto prices increase. The IO exchange platform for example provides this low price service.

Low trading commissions

Commissions exchanges charge differ from one exchange to another. Hence users or investors who use different exchanges can study and determine the exchange with the less commission and therefore use that one for trading.

My exchange account platform

Currently i am a short term investor and trader and i therefore need the maximum security i can get for my crypto assets and also a trusted exchange platform that wouldn't steal my funds. I have found the above needed characteristics in the binance exchange platform. I have never suffered any fraud attacks nor encountered any secuirity lapses on the site. Binance also charge little to nothing on transaction fees with various payment methods, ranging from bank transfers to mobile money payments. I would therefore reccommend binance exchange to any investor or trader.

3- What are better? Wallets or exchanges.?

Depending on what the user seeks/ the specifications of the user , both wallets and exchanges are great platforms and is therefore up to the investor to pinpiont one that suits his/her needs

Wallets provide maximum secuirity needed for crypto assets and users exert maximum control over their assets. Wallets also provide animosity and can also be held both online and offline, unlike exchange platforms which are solely based online. In wallets one can also swap from one cryptocurrency to another which is not possible on some exchanges.
If a user desires the above characteristics he/she should chose wallets over exchange platforms.

For users who seek to trade in cryptocurencies, i would reccommend exchanges over wallets to them.
Exchange platforms are very fast and reliable when it comes to the transfer or trading of crypto assets. These platforms also charge low charges and fees for these transactions. Recovery of passwords or accounts is possible on exchange platform in case of loss, unlike wallets where recovery of logins are almost impossible or very difficult.
I would therefore recommend exchanges to users who seek the above specifications.

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

Under this question I would be creating an exchange account and the following steps indicates the procedures in creating the account.

1. First of visit the etoro website {etoro.com](https://www.etoro.com/)

2. Click on Create Account on the homepage interface.

3. Enter your *username, email, password and tick the terms and conditions then click on create account.

4. Confirm and enter the activiation code received from your email provided.

5. Click on Activate Account to confirm.

6. Click on Verify Account to verify your accounts.

7. Your account has been sucessfully created.

The following are steps in creating a wallet platform, i will be using matemask wallet platform.

1. Open play store on your phone

2. Search metamask in the search box.

3. Tap on install.

4. Which a good Internet connection, metamask will be installed on your device.

1. Click to open.

2. Set up your account. Create your username and password and get started on metamask.

In conclusion, wallets and exchanges are very key platforms which are needed on the crypto world. In this submission, i have learnt a lot, if not little about these platforms, and i hope these new ideas help me as well as other investors in the crypto market.

My warmest appreciate to professor @allbert for this wonderful homework as it has enlightened me more about wallets and exchanges.

Thank you for your precious time and attention.

Special thanks to all the steemitcryptoacademy professors for their hardwork and dedication