Crypto Academy Season 3 Beginner's course - Task 5: Dex, Cex, Popular Exchanges and Trading Cryptos by @staryl.

Maximum regards Steemians.

Today I will love to attempt the fifth task and I hope I do well in it.

Explain in your own words what an Exchange is. Differences between a Wallet and an Exchange. Mention the advantages and disadvantages of DEX and CEX.

Explain in your own words what an Exchange is.

Source
in a layman's understanding, exchange refers to a process of taking one thing for another. In the crypto world, we either take crypto and make a deposit of Fiat money and vice versa.
Exclusively an exchange can be specified as an online platform that supports the sale of digital currency (crypto). Exchange can take place in two ways either with digital currency or Fiat money. In most countries these days crypto is been regulated and this resulted to exchange platforms not been able to accept bank transfers, debit cards e.t.c from users living in such a country for example Nigeria, mostly trading in such a country is carried out using P2P.
An exchange can as well be seen as a house and in it the trading of cryptos is carried out. This house is where cryptocurrency financial value are derived.
Furthermore full details of digital currencies based on it supply, demand, market volume e.t.c can be found on an exchange.

Differences between a Wallet and an Exchange.

The difference between a wallet and an exchange has been kind of confusing but thanks to this class.

Wallet	Exchange
1. You can keep digital currencies for long time in a wallet	you can only keep digital currencies for a short time.
2. Wallets are used to ensure safety of digital currencies	Exchanges are used to speed up the buying and selling.
3. Restoration of misplaced private key is not possible	Restoration of misplaced private key is possible.
4. Only storing of assets is carried out in a wallet	selling, buying and storing for a short time can take place in an exchange.

Mention the advantages and disadvantages of DEX and CEX.

_{advantages of DEX.}

1. Dex is Decentralized
2. Sovereignty as users on Dex are given full control over there assets.
3. Dex encourages privacy as it does not ask for users personal information such as Date of birth or even identity card.
4. Transaction fee is not expensive.
5. Tight security measures are carried out on Dex.
6. Hacking it is almost impossible as it is built on a blockchain.

_{Disadvantages of DEX.}

1. Low liquidity because of low trading volume.
2. Lost of private key prompts to loss of all assets as it cannot be recovered.
3. Slow transaction speed is experienced on Dex as transactions done will firstly be broadcasted on the network then furthermore validated by miners

_{advantages of CEX.}

1. You can exchange cryptocurrency for Fiat money and vice versa on CEX.
2. High liquidity because of high trading volume.
3. It's user friendly.

_{Disadvantages of CEX.}

1. It is centralized.
2. Users are expected to abide by stipulated rules.
3. This type of exchange can be tempered with, that is to say it can be hacked.

Have you used an Exchange before? tell us about your experience.

As I am new to the crypto world, I don't really know much but I would improve with time but for the course of this class I had to explore the binance exchange by sending in Tron from my trust wallet.

_{a screenshot of the transaction, sending from my trust wallet.}

_{My Tron balance after the deposit was made from trust wallet.}

Conclusion.

In conclusion a Dex is hack proof since it operates on a blockchain and every information carried out on a blockchain cannot be tempered with.

• Thanks Prof for this enlightenment on Dex and CEX.