Crypto Academy Week 2 Homework Post For @gbenga
Hi everyone,
I'm a newcomer to the community. I'm trying to learn all the course topics. I'm quite unfamiliar with some topics and have a hard time solving them. Course teacher @gbenga posted an article 3 days ago. Cryptocurrency Exchanges and Cryptocurrency Market Capitalization.
Crypto money exchanges have been used both as a payment tool and as an investment tool in recent years, and their popularity continues to increase day by day. We are trading both with real money and cryptocurrencies in crypto money exchanges. Exchanges are included as intermediaries and receive transfer fees from users for trading and transfer transactions. In other words, the stock markets become partners with your coins and your real money, as you make sub-sales in the long term without spending too much effort.
There are 3 types of cryptocurrency exchanges: Spot, Dex and Derivatives.
Stock exchanges in the top 10 in the spot category. I got the data on coingecko.com.
There are 7 exchanges with 10 points. In my opinion, some of the exchanges on the list do not deserve 10 points. Binance has managed to rank first with its high transaction volume. There are huge differences with other exchanges in terms of transaction volume.
Uniswap (v2) provided the highest volume in DEX-type decentralized exchanges. PancakeSwap follows him. PancakeSwap is supported by the Binance exchange and we will see it in a much different position in the future. Images and ranking belong to coingecko.com site.
Binance has managed to be the best in the derivatives category. Then comes the cointiger. The data and ranking also belong to the visual coingecko.com website.
After giving information about the operating exchanges, let's move on to the wallets section.
The types of wallets where you can store your digital assets are desktop, web (online) mobile (smart phone) and hardware (hardware) wallets.
Desktop Wallets: You can download desktop wallets to your computers and use them that way. You may lose your funds if you cannot protect your computer well. Security vulnerabilities have been detected in Desktop wallets recently and you will lose your funds in the face of attacks.
Web (online) wallets: You can store your funds in web wallets, but special passwords are not yours. Funds that do not own private passwords will not belong to you either. So it is clear that it has disadvantages in use.
Mobile wallets: These are also similar to desktop wallets. If our mobile device is damaged, the security of our funds will be compromised.It will be very simple to shop through these wallets at mobile wallet compatible workplaces.
Paper wallet: It stands out as the most interesting of all wallets. They are very easy to use and secure wallets. In fact, we can say that it is the process of printing your private and public key on paper, and you do not need to be online while doing this, when you want to buy cryptocurrency, you just need to show the QR code on the paper, and to send cryptocurrency, you need to enter your private key in one of the other wallets. This recipe is the useless and disadvantage of the wallet.
Hardware wallets: In the blockchain ecosystem, they are wallets that allow you to prove that you are the owner of a digital asset, and store your private key cold in a chip in a device similar to a USB memory and ensures that it is never online. It is the most secure wallet type among all wallet types. The most important point is that when setting up your wallet, you will be given a 24-word seed through the wallet, that is, your private password. It is very important that you write this password down on a piece of paper and lose it rather than store it on a computer. If you lose it will mean the loss of your funds. The most popular of these wallets is Ledger. I got the above image source from the ledger site.
When I first learned about the crypto money market, I used centralized exchanges. Even if I am going to trade fast, I use a centralized exchange. If I will hold a coin for a long time, I use a hardware wallet. I recommend using decentralized exchanges instead of central exchanges.
I shared my article on twitter. Respects.