![image.png](https://cdn.steemitimages.com/DQmPR9QbBjU3y1HiqKMMenEnxT9etvjshissTpVxvcWXrW3/image.png)

>**EXPLAINING IN MY OWN WORDS WHAT AN EXCHANGE IS. DIFFERENCES BETWEEN AN EXCHANGE AND WALLET. ADVANTAGES AND DISADVANTAGES OF DECENTRALIZED AND CENTRALIZED EXCHANGES. MY EXPERIENCE WITH AN EXCHANGE.** **WHAT IS CRYPTO EXCHANGE** Cryptocurrency exchanges are platforms that are online based, where one can exchange or trade any kind of digital asset depending on it's market value. A popular known exchange platform is Binance. Tho, most times people tend to be confused on crypto exchanges, for crypto wallets. Crypto wallets generally allow the buying and selling of small range scale of known digital assets like the Etheruem and Bitcoin, whereby one can transfer to another exchange for trading for another digital assets e.g altcoins. Most crypto exchanges will generally restrict its users to buy and sell digital assets for another digital assets, but some permit trades of fiat currencies like the U.S. Dollars for cryptocurrency One example is the Kraken exchange which allows funds in JPY, CAD, USD, GBP and also supports Ripple, Litecoin, Etheruem and Bitcoin trades. There are two types of exchanges, Decentralized and Centralized, so one have to choose the one that works for them. - Decentralized exchanges In this type of Exchange, no need for third parties or mediator when performing operations, and information and data here are completely private. In other words the owner is the one in charge. There cost of operation is normally low...some examples are, Uniswap, Quickswap and pancakeswap. - Centralized Exchange The Centralized exchanges are the ones that are controlled by an organization, Nevertheless, they posses a reasonable wide market of liquidity and also volume. Exame are, KuCoin, Poloniex, and Binance. >**DIFFERENCE BETWEEN A WALLET AND EXCHANGE** ![cryptocurrency-wallets-vs-exchanges.jpg](https://cdn.steemitimages.com/DQmTcC75TAwGqAxGPTAirq2Q3kiaQUmMXsU41TbauzbBgTB/cryptocurrency-wallets-vs-exchanges.jpg) [source](https://www.cryptimi.com/guides/whats-the-difference-between-a-crypto-wallet-and-exchange) - A wallet provides is with security over our assets, grants access to sendind and receiving from another wallet, and also keep track of money in it. - An Exchange serve the purpose of multiple operations so as to acquire income, inclusion to the buying and selling of crypto assets. - should in case we lose the password to our wallet that means our money is gone, since we responsible for it but in some exchange there's room for password account password recovery. - Performing Operations in exchanges, normally take some time interval and also with high commissions charged but low commissions are charge using wallets and fast in performing operations. >**ADVANTAGES AND DISADVANTAGES OF DEX AND CEX** Advantages and disadvantages of CEX ADVANTAGES | DISADVANTAGES -|- As it is centralized, its been protected and controlled and so one can get a backup of their assets, should Incase there is a hack.| The issue of privacy is a problem here for some investors needs such on some operations. They hold comprehensive information in the order book, so viewing of buying and selling volume is allowed for any asset.| With them accessing our detailed informations about our account, they are open to hackers. They also have more volume and liquidity in the market, as they are easy to use and are mostly utilized by large investors.| Their commission charges are kind of high. They also have more alternative for carrying out two actions to bring about income.| They rely on third parties in performing operations. Advantages and disadvantages of DEX ADVANTAGES | DISADVANTAGES -|- It provides a users with complete access and control, that is to be in charge of their account details and transactions| They are not that easy to handle, they are kind of complex. It is not prone to hacking and it is not been monitored or controlled by any organization or body| The don't posses much market volume, not everyone uses it. The Commission charges are lower here| They user is the one in charge of their passwords, no third parties involved. In decentralized exchange, security is assured and as people are able to perform transactions with privacy| >**HAVE YOU USED AN EXCHANGE BEFORE? TELL US ABOUT YOUR EXPERIENCE** I have been hearing about Bitcoin and coins and the rest I never really understood anything of the crypto world then not until I joined steemit. At first I wasn't that easy but with time and the help of the Crypto Academy community I come to understand it better. Initially I was using roqqu, untill I was introduced to Binance after a brief tutorial via Steemalive community telegram channel. I decided to sign up and I started trading with Binance. So far so good I have learnt alot tho am still learning more about the cryptoworld in general. I encountered some difficulties then, I lost too..it wasn't that easy as a learner, but every day is a learning process, with the help of cryptoacademy assignment task I have learnt alot..thanks to Steemit for such a wonderful community..

Cc: @imagen