STEEMKIDS CRYPTO ACADEMY WEEK 5/CRYPTOCURRENCY WALLET and EXCHANGES/10% to @steemkidss

I greet you all my dear friends. This is my assignment for this week's cryptoacademy.

Question 1

Discuss and Explain Exchanges in your own words. Give examples

Exchanges

Exchanges are platforms or applications that allows or helps users to make buying and selling transactions of tokens.
These exchanges which facilitate buying and selling of tokens also allows us to convert the normal Fiat currency into digital tokens and vice-versa.

The exchange platforms can be likened to the normal market or shopping mall where we exchange money for goods and services.

They are known as exchanges because they accept wire transfer, credit card payment or other forms of payment in exchange currencies.

They act as intermediaries between the buyers and sellers and earn through the fees for the transaction.

For example $50 can be exchanged for Bitcoin or any other digital currency using an equivalent value. Or Bitcoin can be exchanged for euterium ETH or steem of equivalent value.

Examples of exchange platforms are: Binance, Kucoin, Bitstamp, Bithump etc.

Question 2

List the differences between a Wallet and an Exchange.

Differences between wallet and exchange

Exchange	Wallet
It allows users to make buying and selling transactions	Wallet is where the crypto assets are stored but cannot actively be used.
Doesn't allow full access to your private keys	allows full access to your private keys
Fees charged for transactions in exchange are lower than that of wallet	fees charged in wallet are higher than exchange
An identity card is needed in an exchange to identify each user	Identification is not needed

Question 3

List some similarities between an Exchange and wallet.(Give an example of a wallet that have such similarities)

Similarities between wallet and exchange

• Both wallet and exchange can be used to accumulate and store cryptocurrency

• Some wallets can also perform the function of exchanging digital currencies to another currency.
  Just like exchanges, these wallets can be used for staking and freezing if crypto assets. Users also earn interests from this functions.

A few wallets perform the above mentioned functions though and the fees are usually very high.

Example of such wallet is the Pandora's wallet. This type of wallet allows crypto users to buy and sell crypto assets just like exchange platforms.

I have just attempted all assignment post for this week. I really benefitted a lot from this week's lecture.
I will keep trying my best to improve and learn more.
Thank you @steemkidss for providing this amazing classes.

Also thanks to anyone reading this post right now.
See you next week.

Special thanks to the steemkids team:

@ngoenyi
@goodybest
@peachyladiva
@mariajruizb
@brightobias
@psicoparedes
@eliany
@benton3
@graceleon

And the others. I say thank you to you all.