Assalam O Alaikum Everyone

I am doing good and hoping you all are doing the same. Today I am posting the homework given by the Professor @naqshraja1. I am glad to do this as I have learned alot from this lecture.

Question no 1

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What is the difference between Cryptocurrency and the traditional Financial system? What are the Pros and Cons of Cryptocurrency (Write at least five)

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Differentiate between Cryptocurrency and the traditional Financial system

• Cryptocurrency is the digital currency based on the blockchain technology and use decentralized networking system whereas, The traditional financial system used by the banks and used centralized networking system.

• Cryptocurrency requires the instant time for transactions and conduct online with almost no fees. Whereas, Traditional Financial system requires much time or days to make the transaction. Moreover, bank charge high fees for the operations to be made.

• Cryptocurrency has point to point transmission facility however, no cross border third party involved. And in Traditional

• Financial system intermediaries are involved when transferring money to a person living in other country.

• Cryptocurrency is easily accessible online or on the Internet And Traditional System requires the time to access any BANK or Institute.

Source

Pros and Cons Of Cryptocurrency

Pros:

• It is highly secured as, It is with no personal Information so have little no chance of stolen happened. * It charge little or no fee when transferring from person to person.

• You can easily trade Internationally.

• You are the individual owner of your accounts wallets. * You can easily make the Transaction at any time.

Cons:

• It has high potential of large losses.

• It can used for Black Market.

• It is volatile in nature.

• It is irreversible after transfer.

• It has no security after your loss.

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Question no 2:

What are the objectives behind the creation of Bitcoin?

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Objectives behind the creation of Bitcoin

• Objective of Bitcoin was to make the online cash version to remove the interference of social and governmental control.

• To make the way for people to transact their amount without any interference of state and bank.

source

Question no 3

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What are the differences between Wallets and Exchanges? Which is better in your opinion?

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Differentiate between Wallets and Exchanges

Exchanges

• It is a platform which makes you buy and sell your coins such as, Bitcoin, Dogecoin, Ether or many other cryptotokens Safely.

• Exchanges can makes you convert your crypto coins into currency and Bank further you can convert your currency such as USD into Crypto coins.

Wallets

• On the other hand, Wallet makes you able to store cryptocoins.

• It is a place where you can store digital currency safely. * It consists some codes in a form of key, Such as private key which allows the transaction or allows you to spend the coins you holded.

Opinion

I have a different mind set in different situation regarding wallets and Exchanges. For example If I need to just store the cryptocoins I'll must use the wallet software program because wallet is the safest and secure to store than the Exchanges further If I need to convert the cryptocoins into currency or vice versa I'll use Exchanges.

Question no 4

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Create an account on Binance and show screenshots of the process(if you already have binance create an account on Poloniex)

OR
create an account on Crypto Wallet and show the screenshots of the process (eg: Trustwallet, Exodus etc)

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Following are the steps of making trust wallet (Crypto wallet).

• Firstly you have to go for playstore & search Trust wallet(Crypto wallet).

• You will find the same APP as you can see in the below picture.

• Install the Application.

• After Installation, Open the application by clicking on open.

• You will see the wallet creation page.On which you will have some guidance and Instructions regarding Privacy and Security, By Trust Wallet

• Afterwards you will have the Button "CREATE A NEW WALLET"

• You have to click on that button for the next step.

• Now here you need to understand the terms and put the tick mark to continue for the further process.

• After that you have to click on continue for back up your wallet and to move next.

• After continuing the process you will have the recovery phrase which you have to copying somewhere save accordingly, As it is used to recover your account and for the security purpose.

• You can't even take the screen for that phrase as it's too secured.

• In the next step you have to put that phrases orderly.

• The last you need to Continue and your account will successfully create.

Thanks for reading and supporting & Special Thanks to Professor @naqshraja1 for the detailed and educative lecture. Which makes us learn alot.
Please leave reviews in a below comments section as it is my first home work.

Thank you

#naqshraja1-psp #cryptosp #steemexclusive #pakistan