Grassroot Crypto Education (Vol.7) - Exchange & Decentralized Crypto Wallets: Create a new Decentralized Crypto Wallet

Introduction

Hello to all the kids in @steemkidss and other users reading this article today and I hope everyone is doing okay. Our education has entered volume 7 today and it's a great pleasure to have come this far, thanks for also participating this far. Last week, we looked into the topic wallets in cryptocurrency and today again, we would look at some classifications of wallets and the purpose of each of them. Both to be discussed are Exchange crypto wallet and Decentralized crypto wallet.

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Exchange Crypto Wallet

One of the classifications we would be looking into today is the exchange crypto wallet. Before we open the basis to this classification of crypto wallet, a bit of what exchange means should be done. Exchange in cryptocurrency is referred to as a trading platform that enables crypto traders to trade different types of crypto assets as listed on the exchange trading platforms.

Having understood exchange, exchange crypto wallet is the classification of cryptocurrency wallet hosted by an exchange for the use of traders to store and trade different types of cryptocurrencies. Before you own an exchange crypto wallet, you must have registered with the crypto exchange supplying some of your details; email address, password, identity number and so on.

Some of the details supplied would enable you to get verified as a new customer on the exchange and increase your access to the exchanges' products based on the level of verification you have enrolled for. A few examples of exchanges are; Binance, Hotbit, Coinbase, Poloniex, Bittrex, and so on. When it's said to be an exchange, it's always meant for a centralized exchange like the ones mentioned earlier. There are decentralized exchanges as well, you would understand this subsequently.

Key Highlights of Exchange Crypto Wallet

Exchange wallets are most suitable for users that are interested in trading crypto assets.

Users are provided with a wide range of assets even the ones from different blockchains for storage and trading.

Exchange wallet is controlled by central authorities, which means an action like, your request to withdraw from the wallet pass through authorization from the exchange's central server.

It's not always suitable for long term storage of assets as centralized exchanges that host them are mostly prone to attack.

Users don't have full control over this type of cryptocurrency wallet.

Decentralized Crypto Wallet

Decentralization is one of the breakthroughs in the crypto ecosystem, no doubt, we have spoken about decentralization in one of the previous lessons where we highlighted that all decisions are controlled by you and not controlled by an intermediary. As such, Decentralized crypto wallet is the classification in the crypto ecosystem that enables users to store their crypto assets with total control over it and advanced security.

In decentralized crypto wallets, users have the private keys to the wallet which gives them full control over their stored assets. As such, the private keys can be the known alphanumeric combinations as discussed in the previous lessons or seed phrase (normally 12 - 24 words) which can be used to reimport the wallet into a new device at any time. In this case, users' withdrawal from the wallet can be done any time of the day without waiting for a central authority to grant access to the funds.

In addition, this type of crypto wallet has eliminated the existence of intermediaries in transactions. Some of the examples of decentralized crypto wallets are; Trust Wallet, Coinbase Wallet, Electrum Wallet, MetaMask Wallet, Exodus Wallet, and so on. Let's take a look at some of the highlights of a decentralized crypto wallet.

Key Highlights of Decentralized Crypto Wallets

Users have full control over assets stored in a decentralized crypto wallet.

There is the elimination of third parties which leads to faster transactions with no middlemen hand to cause delay. In other ways, transactions are not routed through any central server.

Users have the private keys to their wallet and this can be used for reimport purposes in a case where a user gets a new device or when theft of his/her phone occurs.

It's less prone to attack as long as the user protects his/her private keys. This makes it safer as compared to exchange wallets.

No document is required to create this type of wallet. In that case, everyone can create as desired, thanks to decentralization.

It's more suitable for long term storage of crypto assets as the user is in total control of the wallet. But it's less suitable for trading.

How to Create a Decentralized Crypto Wallet

In this part of the lesson today, you will learn how to create a decentralized crypto wallet and the one we would be creating is Trust Wallet, a product from https://trustwallet.com/. I will be using mobile for the illustration as I believe most of the kids are more comfortable with their mobile phones at the moment. Let's get started.

Visit https://trustwallet.com/ and select get it on Android for Android users. As a first time user, click on download at the Google Play Store. See the screenshots below.

_{Source: https://trustwallet.com/}

_{Source: Google Play Store}

Launch the newly downloaded Trust Wallet and click on create a new wallet. Now, check the box to acknowledge that you know that the loss of your recovery phrase makes you lose your assets and click the continue button. See the screenshots below.

On the next interface, your recovery phrase would be revealed, write it down in a paper, do not share with anyone because that's the key to your account and whoever has it has your wallet, take note. Click the continue button. On the next interface, tap to input the phrase in order and when you are done, click done. See the screenshots below.

Now, your new Trust Wallet account is ready and you can start using it for storing crypto assets. See the screenshot below.

Conclusion

In conclusion, the decentralized crypto exchange has a distinctive difference as compared with the exchange crypto wallet, giving the owner of the wallet full control over their assets with the elimination of central authority. In this piece today, I have also shown you how to create a decentralized crypto wallet such that many minors won't be hindered by any document that exchanges request before you can create an account. I hope you enjoy the lecture today and the next one is going be great as always as we continue to explore the world of cryptocurrency.

Homework Task

Discuss Exchange Crypto Wallet and Decentralized Crypto Wallet. What are the differences between the two?

Which of the wallet's classification mentioned above do you prefer? Create a new Trust Wallet account, include the steps and screenshots. Note: Blur your recovery phrase.

Guidelines

Write an article of at least 250 words. Keep your explanation as simple as possible.

Include the tag #grassroot-education7, #crypto, #steemexclusive, and your club status among the first 4 tags. Also, tag me @fredquantum in your homework entry.

For Verified Steem kids alone. And the kids must be the ones that have not been participating in the Steemit Crypto Academy.

I will check your articles and drop comments on the entries submitted now till 11:59 pm UTC, 5/03/2022.

Cc:-
@steemkidss