Hello everyone, i am happy to be in attendance of this week's crypto lecture room. Here my homework task for the week.

Question no 1 :
Write the definition of Decentralized and Centralized Exchange in your own words.(definition should cover exchanges ,not system) only explain in your own words, after understand the exchanges

Decentralized exchange can simply be defined as any transparent and permissionless financial market place where traders are completely in control of their trades, without the approval of any central authority.

The beauty of decentralized exchange is that the trades are peer-to-peer, and it is trustless and takes very little time for the exchange to happen. So I don’t think I will be wrong if I say that any peer-to-peer swapping can also be called a decentralized exchange or decentralized trade.

A perfect example of decentralized exchange is atomic swap, which allows the quick exchange of different cryptocurrencies on the blockchain. This exchange is based on what is generally known as smart-contracts.

Centralized Exchange is a financial marketplace where an individual is not allowed to be in complete control of his assets. This means that if an individual wants to make a withdrawal, there is an intermediary that signs the transaction on behalf of this individual. When this person also makes a deposit of either fiat currency or cyptocurrency, he gives up control of the asset. And when he wants to trade, there is no on-chain transaction, rather, the exchange uses its own database to allocate assets to its users.

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Question no 2 :
Explain in your own words the difference between decentralization and centralization exchanges (answer should related exchanges ,not over all system.. (answer must be written in oun words, copy paste or from other source copy will be not accepted)

DIFFERENCE BETWEEN DECENTRALIZED AND CENTRALIZED EXCHANGE

• Issues of trust is not something to worry about when trading in a decentralized marketplace but centralized exchange, you need to trust the exchange that is in control of your money.

• Security issues with decentralized exchange is very sleek and can only happen if the trader unknowingly allows or gives hackers access to his wallet but in centralized exchange, hackers can easily cripple their system and sweep off the funds of traders.

• Orders are executed with smart-contracts in the decentralized exchange and that makes it a very transparent marketplace but in centralized exchange, orders are executed off-chain and that means there is no transparency.

• In the decentralized system, it is very easier for a trader to buy and sell cryptocurrencies because there are so many tools available for him to choose from but the direct opposite is the case of centralized exchange, tools are limited with some level of restrictions.

• Fee charges in decentralized exchange are sometimes free but in the centralized exchange, fee charges are much.

• Transactions are done on the blockchain in the decentralized exchange, making it permissionless but in the centralized exchange, the transactions are done, not on the blockchain. Traders needs the permission and approval of the central authority before they can trade or exchange because their funds are in the custody of a third party.

• Know Your Customer (KYC) verification is not required in the decentralized exchange but it is mostly always required in the centralized exchange.

• Traders are in complete control of their assets in the decentralized system but in the centralized exchange, there is no such as being in control of your assets.

• The decentralized exchange is known to be of less liquidity exchanges but in the centralized system, liquidity exchanges are very high in the centralized system.

• Exchanges in the decentralized system are peer-to-peer but in the decentralized exchange, there are third parties involved.

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Question no 3 :
write about any 2 best centralised exchanges of 2021 . why are they best in front of you? (Show screenshot of your verified profile to make verify that you are really using them, or also share any one trade that you made in last 24 hours )

My best two exchanges which I use often are Binance and Metamask.
The reasons I really like using Binance are because;

My Transaction History On Binance

• It is very easy to use. Meaning it is user friendly

• The fee charges are considerably low

• Being one of the famous and popularly used DEX, I can leave my funds there as long as I want and still come back and see it intact.

• The trading risk is really manageable on Binance

• Transferring funds from binance to another exchange takes less than 3 seconds to complete, and that make is very fast

Another exchange which my love for it bursts the roof is Metamask. My reasons for loving it are;

My Transaction History On Metamask

• Metamask has a very reliable customer support which is what trips me so much it.

• Because it is an open source exchange, the it is very transparent.

• It has a user friendly interface

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Question no 4 :
Install Metamask, and share step by step screenshot ,(Practicle step by step )

Downloading Metamask is really not a difficult thing to do.
Log on to the official website of Metamask which is https://metamask.io

Click on download now.

Download the chrome extension to get started.

I already have the extention installed in my device so i am to login

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Question no 5 :
How to use Uniswap exchange , and Swap/buy or swap/sell any coin (practicle step by step )

To use uniswap, you have to login to the website which is https://uniswap.org

Click on Use Uniswap

Click on select Token. And I will love to swap ETH for AAVE.

In put the amount of ETH I would love to swap for AAVE then connect to wallet to complete the transaction.

Conclusion.
Many years ago, the internet was struggling to to stand out and be accepted my the whole world. But now, the world revolves around the internet.
In the same way internet gained prevalence despite all odds, DEX will one day be accepted in the whole world as also a traditional way of exchange.

Thank Prof. @yousafharoonkhan for going through my work.