Steemit Crypto Academy | A world of Wallets and Exchanges | Homework task for @allbert

On this occasion, I will try to take a class at Steemit Crypto Academy. I am interested in joining this class because there are many new lessons that I will get here. I will do homework task from professor @allbert. Lesson discussion about A world of Wallets and Exchanges. Lets try...

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)

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Wallet is a means that many people use to store cryptocurrencies. Wallets have an important role in keeping cryptocurrencies safe and preventing theft or misuse of irresponsible people. The main factor that people use wallets is because of the high level of security and giving full control of all activities that will be carried out by the owner.

This is evidenced by the creation of an identical wallet with a code or phrase that allows only the owner to know. And also the owner can recover the account in case of forgetting. In the world of cryptocurrency, having a wallet is one of the important points for success.

Exchange is a means that many people use to trade cryptocurrencies. Trading can be done with everyone involved around the world. Exchange services such as trading and depository are very helpful for many people in life. The main purpose of using an exchange is to make a profit. But all of that definitely requires analysis and strategy.

To carry out the trading process, cryptocurrencies need to be deposited and stored in the exchange. But this is only suitable to be done temporarily and in the amount needed only. Because the internal exchange wallet has a low level of security. In the world of cryptocurrency, having an exchange is the key for success.

The difference between a wallet and an exchange in terms of the main function is very clear. But for some people or those who are not experienced in the cryptocurrency world, they only use one app or platform because they can both store and trade cryptocurrencies.

Of course, each platform continues to improve the quality and interest of its users with the latest and best innovations. In this case the supporting features that speak and play a role. All the supporting features are helpful but not as good as the main function of the app or platform.

Where the wallet can be trading cryptocurrencies with a feature called swap. However, this is not recommended because it is expensive. It is only suitable for use in an emergency or unexpected situation. And the exchange has an internal wallet which is a support feature as one of the stages of the cryptocurrency trading process. However, it is not recommended to store large and long cryptocurrencies because this is only a step in completing the trading process until get a profit.

In terms of fees, Wallets are highly recommended in storing cryptocurrencies in the long or short term. This is because fees are pegged to blockchain fees. However, for other transactions, the fees can be expensive because it is only a supporting feature such as swap.

And Exchange is highly recommended in trading, staking, lending, and other transactions about profiting from cryptocurrencies. This is because fees are pegged at the fees of each exchange. The determination of transaction fees comes from exchanges and it definitely varies.

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?

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I think everyone should have multiple exchange platforms. Each exchange has different features, characteristics, security levels and advantages. The use of multiple exchanges is very helpful and beneficial when it comes to cryptocurrency transactions in the long and short term.

The reason is because of the availability of different types of cryptocurrencies, transaction fees, prices, maintenance, speed, appearance, and trustworthiness. All of these are very important to consider. Where if one exchange is problematic or does not match, there will be a replacement that is ready to be used.

In this case I have an exchange account like binance, bittrex, dan poloniex. Binance is the exchange I use until now. Several reasons might be worth giving, such as the availability of a lot of crypto, cheap transaction fees, updated markets, secure wallets, profitable trading features and methods, rarely maintenance or problems, friendly appearance, and I am familiar with and comfortable. All aspects and matters contained in the exchange are taken into consideration. Everyone has their own exchange that has been used frequently and brings a lot of profit.

To be successful in the world of cryptocurrency, the development of knowledge and experience is the main factor that is very influential. All of this can not be separated from the involvement of the exchange in the trading process and generate profits. Having multiple exchanges is one of the advancements. This is one of the keys to success because you can rely on many places to complete the required process and have a backup too. This is especially useful in an emergency.

3. What are better? Wallets or exchanges?

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In my opinion, wallets and exchanges are equally good. The two are interconnected and support each other. This is based on the difference in the main function of the two. Where everyone who jumps into the world of cryptocurrency already understands and has a lot of experience about the risk of loss.

Here the wallet is the best solution for storing and maintaining large amounts of cryptocurrency for a long time. And also the exchange greatly affects the amount of profit that will be obtained. The number of services that exchanges provide in order to increase and manage cryptocurrency is very helpful.

So here I will choose a wallet and an exchange without choosing one and compare them because both I own and have an important role in managing cryptocurrencies. This is a view in terms of usability and utilization of the same as well.

It is clear that the use of wallets and exchanges based on their main function is the most appropriate. So I can pick and place something according to my needs where it is best. Wallets and exchanges are equally important points for success in the cryptocurrency world.

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

Wallet (Coinbase)

• You have to create an account and register for a Coinbase wallet. Here I choose the first option.
  

• You have to review the coinbase wallet terms of service and privacy policy. Before using this platform you are expected to agree to all available policies. Here I accept it.
  

• You must enter a user name that is available and not yet in use by other users. This username is your identity to help other users find you and make transactions with you.
  

• You must set your privacy preferences. Here I choose the first option and this is a recommendation. You can choose public to allow other users to find you and make transactions with you.
  

• You can add security features to keep your wallet safe. This is intended so that not anyone can open and make transactions on your wallet without your permission. Here I choose use the first option and it is a recommendation.
  

• Your coinbase wallet account has been created and ready to use. There is a send and receive option which will be an option for your transaction.
  

Exchange (Hotbit)

• You can visit the Hotbit site and register.
  

• You can click and send the verification code to the email. Then you can fill in your email and password.
  

• Registration code has been sent to email.
  

• You can log in by filling in a valid email and password.
  

• Your hotbit exchange account has been created and ready to use.
  

Conclusion

The use of wallets and exchanges is very important in the cryptocurrency world. Based on the main function, the wallet is used for storing and the exchange is used for trading. Security level and fees are factors that are looked at and considered in cryptocurrency management. Where the wallet is suitable for storing and is not recommended for swaps. And exchanges are suitable for trading and not recommended to store.

Having multiple exchanges is also highly recommended because it is very good at doing a lot of transactions to avoid obstacles or mistakes that might occur. This is all to make all the processes in terms of profit and keep the cryptocurrency running smoothly and successfully.