1-) Choose any of the following exchanges and develop a basic guide on how to use it, indicating whether it is decentralised or centralised.
Huobi
KuCoin
Waves Dex
Below is my homework submission post.
Exchanges are mainly used to render aids and services for cryptocurrencies and there are currently a lot of this exchanges available for traders and investors to use. This exchanges provide a market and a platform for cryptocurrencies to be bought and sold, and without the existence of this exchanges we wouldn't be able to appreciate the value of these crypto assets.
In simple terms, the statement above is saying that the exchanges makes traders and investors to get to know the real value of the assets they are owning or holding. Exchanges are generally categorized into two which are the Decentralized exchanges and the Centralized exchanges.
As you can see above, I have been given three different exchanges with the opportunity to choose one of them and do a detailed writing on it. Among the three, I have decided to choose one of the centralized exchange which is the Huobi Exchange and I would be explaining to your understanding everything about this exchange.
Huobi exchange is a centralized exchange or platform where we can exchange our cryptocurrencies(buy and sell) at a charge or fee. The Huobi institution began its operation in the year 2013 and it was founded in Seychelles. The name of the man who founded this exchange platforms called Leon Li and as I speak now, the Huobi exchange is among the top and most prominent cryptocurrency exchange platform in the world. Leon Li is a financial technology student, and before he launched the Huobi platform, he used to work as a computer engineer at a company called Oracle.
When Leon Li founded the Huobi exchange, their headquarters was first situated in China but along the line, they left China because of the decision of the government to stop the exchange of cryptocurrencies especially Bitcoins in his country. One of the aim and target of the company at it's founding stage was to be the most recognized and dominated platform to trade in cryptocurrencies within China but it wasn't possible because of the government interference.
As I speak now, the Huobi company has now started operating in more than 100 countries and it has its offices in all this countries. Some of the countries we can find the Huobi offices are the United Kingdom (UK), Canada, Hong Kong, Brazil, South Korea, Australia and Japan.
The Huobi exchange platform is one of the first platform which was created to trade cryptocurrencies and there are a whole lot of cryptocurrencies investors and traders can trade on this platform with their trading pairs. This platform has a very high trading volume which makes it one of the biggest and largest exchange for cryptocurrencies since it's establishment in the year 2013. The trading pairs on the Huobi platform or exchange are many which makes it one of the best platform to trade and exchange our cryptocurrencies.
Just like any other centralized exchanges who have tokens to their names, the Huobi exchange also created a native token for the platform called the Huobi Token, abbreviated with HT. The Huobi Token was created in the first month of 2018, that is five years after the establishment of the Huobi company. This token has several trading pairs and it is used to exchange and trade with other currencies only on the Huobi platform but not on other centralized exchanges available. One thing about this token is that, it cannot be mined but it can rather be bought or sold. We all know that most of the cryptocurrencies we have in circulation are being mined but this Huobi token cannot be mined. The platform where we can buy and sell the Huobi Token is the Huobi exchanges available as I already made mentioned.
There are big plans for the Huobi exchange currently because the company has made it known to it's users that they are in the process of moving it from centralized to decentralized exchange where there wouldn't be any third party involvement in performing transactions on the platform. They have also made it known that the name of the company would change after they have completely transform it from centralized to decentralized exchange, and the new name would be Huobi Chain. After that, the platform native token would be merged and incorporated into the blockchain.
The Huobi exchange platform has very wonderful features which are easy to understand and use without any form of difficulty. This platform is very nice and attractive which makes it simple for newbies or new traders to explore the platform with ease. I would be giving you a guide as to how to explore and use the platform without any difficulty below.
Step 1: The first thing to do is to visit the official platform of the Huobi exchange and we can do so by clicking on [Huobi.com](
As you can see in the screenshot above, this is how the official page of the platform is and you can login to the platform if you are an old user. If it is your first time, then you need to sign up in order to explore the platform.
If you already have an account, you need to log in by using your Email or phone number and the password you used in registering and if you don't have then you need to follow the process in order to sign up.
Step 2: After you are done registering, you then have to login to the exchange platform to access it. Login on the platform is located at the top right, click on it as shown in the screenshot below and put in the Email/phone number and Password you used in registering.
In the screenshot below, I have successfully login to my Huobi exchange account and the part I highlighted is a bar that list the services on the platform and we can explore them through this bar.
There a lot of items on the exchange but I would be looking at the most important and relevant items on the platform. Follow me and see how you can explore the Huobi exchange platform after logging in to your account.
- Deposit feature: The first item I would be discussing on the platform is the Deposit feature and we can explore this feature by clicking on it as shown in the screenshot below.
After clicking on it, a new page would open where a search box would be made available to search for the cryptocurrency you want to deposit. Kindly type in your preferred crypto and it would pop up.
Copy the address and send the crypto to that address to be deposited in your wallet. Above is a screenshot of how the deposit page looks like on the Huobi platform.
- Buy Crypto feature: The buy crypto feature is the second feature on the Huobi exchange platform and we can explore it by clicking on it as shown in the screenshot below.
This feature allows users to be able to buy or purchase any cryptocurrency of their choice by using fiat money or currency for the purchase. The platform provide users who are card holders or bank accounts owners the opportunity to buy crypto using them. Users can also purchased cryptocurrencies from merchants who are recognized and registered on the platform through a process known as Peer-2-Peer (P2P).
- Markets feature: The next feature I am going to explore and discuss is the Markets feature and we can explore it by clicking on it as shown in the screenshot below.
After clicking on this feature, a fresh page would open listing the cryptocurrencies users can trade(buy or sell) on the exchange. This cryptocurrencies are not just listed but they are grouped into five different categories which are the Pioneer, Huobi New, Huobi Next, Huobi Main and Huobi Inno. Traders can use one cryptocurrency to exchange with another currency in this section and also, users can view the Future markets by clicking on the Futures feature at the top of the page.
- Spot trading feature: The spot trading feature is the fourth and one of the most important feature on the Huobi exchange platform. Most of the traders on the platform are more concentrated and focus on this feature because they can store their assets here and sell them later when the price appreciates.
You will see a list of items shown after clicking on the spot trading feature and these items are the Exchange, Margin, Trading Bot and the Brokerage also known as OTC. The Exchange feature allows users and traders to use the cryptocurrencies they have to either buy other cryptocurrencies or sell them for other cryptocurrencies. The Margin feature allows traders to trade cryptocurrencies by using leverages.
Users usually borrow some funds from the exchange or a third-party to aid them trade in large quantities in order to gain a lot of profit. The trading bot feature also gives users the opportunity to perform or carryout trade by using trading algorithms on the platform. Brokerage or Over-the-counter (OTC) feature allows users to perform trade on the Huobi exchange platform digitally.
- Derivatives feature: Derivatives is the next feature I would be talking about and it is also the fifth item on the Huobi platform. We can explore it by clicking on it as shown below in the screenshot.
After clicking on it, a list of items appear and these items are the Coin-margin futures, Coin-margin swaps, USDT-margin swaps and the D-Warrants. This derivative feature is purposely created for traders who would like to trade in the Futures market. This futures market is more or like the margin trading, and they also use leverages in trading. Usually, a consensus or agreement is made between two traders to carryout a trade in the future.
- Finance feature: The finance feature is the next item on the list and the sixth one of course. This feature provides users with DeFi services on the Huobi exchange platform. It also has features such as the Huobi Earn, Crypto Loans, Primepool, ETH 2.0 and then staking. This feature gives users the opportunity to stake their tokens and gain some benefits from them. Liquidity is also made available to the liquidity pool when users lock their tokens or assets for some period of time in the Primepool feature.
With the Huobi Earn, users can earn extra by using a variety of products made available by the platform. Users also have the opportunity to earn Ethereum on the platform through the ETH 2.0 feature. Users who also wish to take loans on cryptocurrencies from the exchange or from third-parties can do so through the Crypto Loans feature.
- Balance feature: The next feature is the balance feature and it is the seventh feature on the Huobi platform. This feature allows or enable users and traders to have a view of their account details on the exchange platform. There are several account details we can view in this feature and some of them are our deposits and withdrawal (Exchange Account), Fiat Account, Pool Account, Warrant Account, Quant, Derivative Account, Margin Account, Collateral Account, Buy With Credit Card and My Points Card.
These accounts I listed above are different from each other and they do not function the same because they all have their purpose and individual characteristics. It is very important and necessary for traders to have a deeper understanding on how this accounts works. Having a deeper understanding about how it works means knowing the functions of each of the accounts listed above. Let's take an example;
The exchange account is used for checking your transactional details such as the deposits you have made in the account and the withdrawals you have made. This means that, users can deposit money or cryptocurrencies into this account and the data would be recorded in these account in case of future reference.
- Orders feature: We are now at the eighth feature on the Huobi exchange platform and this feature is the Orders feature. Just like any other feature, we can explore it by clicking on Orders as shown in the screenshot below.
This features allow users to view the orders they have placed to purchase or sell cryptocurrencies on the platform. It shows the user the status of the placed order, whether the order has been executed successfully or it is still pending. It also shows the amount of money or cryptocurrency used to place the order and the price at which the user place the order. This feature also include items such as Fiat Orders, Derivative Orders, Exchange Orders, Margin Orders, Loan Orders, etc.
- Wallet feature: The next and last last feature I would be discussing on the platform is the wallet feature. We can explore it by simply clicking on it as shown in the screenshot below.
This feature is used to store our crypto assets and it can store as many as you want to store. Immediately after depositing your currency or changing your fiat money to crypto, the asset can be viewed in the wallet option. The platform also allows users to set their fingerprints to open the wallet and this because of extra security. They want protect users assets or funds in the best way they can.
The last thing I decided to discuss is the Huobi Trading Platform because I think it is necessary and important to do so. We can have access to the Huobi Trading Platform by clicking on the Trade feature. After clicking on the trade feature, it would take you to the exchange platform where the trade can be carried out.
For those using computers or laptops, there would be a drop down of items after clicking on it. Click on the first feature and it would take you directly to the trading platform. I have given a screenshot below showing how the Huobi Trading Platform look like.
Let's talk about the screenshot above because we can see some features in it. Some of the features we can find on the platform is the trading chart, a list of cryptocurrencies, an order book, the buy and sell options, the limits, Stop-limit, market, trigger order and the timeframe.
Exchanges play a major role in the success of cryptocurrencies because they provide a platform where traders can buy and sell their crypto assets with low fees and at a faster rate. This exchanges are categorized into decentralized exchanges and centralized exchanges. Decentralized exchanges are not controlled by a central authority whilst centralized exchanges are controlled by a central authority.
One of the centralized exchanges is the Huobi exchange and we can trade our cryptocurrencies on this platform with ease. We can also decide to store our assets in the Spot trade option for the price of the asset to rise before we sell. Although trading cryptocurrencies is very profitable, I would encourage new comers to be very careful because the market is risky as well because of how volatile this assets are.
Thank you.
Cc: @dilchamo