STEEMIT PAKISTAN CRYPTO COURSES SEASON 1 | BEGINNING OF THE BEGINNING: CRYPTOCURRENCY. WALLETS AND EXCHANGES| by @naqshraja1

Good evening my students. Before starting with the first lecture of the Steemit Pakistan Crypto Courses Season 1 let me introduce my self. I'm one of the newly elected professors in this community and I'll be with my students all the time for any sort of help that you need.

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This week, I decided to teach you from the beginning. So that all of us here should have the basic idea of the Cryptocurrency, altcoins, fiat currency, wallets exchanges etc. So lets start.

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CRYPTOCURRENCIES

Cryptocurrency is a Virtual Currency which means we cannot touch it like the normal currencies for example you can touch and feel the 1000 rupee note but you cannot touch bitcoin. Cryptocurrencies were invented on the basis of decentralization. And decentralization was made possible through Blockchains

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The main motive of Cryptocurrency was to abolish the traditional financial system in which third parties were involved. For example you want to send money to your mother in a different country. You will have to go to a bank, then talk with the bank personals, then make transactions, then sign papers. After that the whole transaction will take some time and even some cases it will take some days for the money to reach your mother in a different country. With this lengthy process there is also bank fees deducted, you will have to pay taxes and etc. So you see what is happening? In the traditional financial system which was done through banking a third party is involved and for you to transfer you HAVE to get involved with a third party which is in most cases banks.

source

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Cryptocurrency on the other hand is a digital currency which does NOT need any mediator for the transfer. You can directly send your asset to anyone through your mobiles or computers. The cryptocurrency transfer system involves a P2P Transfer which means peer to peer which basically means that you can directly send your asset to anyone you want.

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The transfer is done through your wallets which will require your public and private keys. The public key is for the address of the account and the Private key is used for the transaction of the asset. In the Crypto world, the keys are very important. If you loose the key to your wallet you will NOT be able to recover it.

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ADVANTAGES

• No intermediaries needed. Direct P2P transfer

• Very quick transactions

DISADVANTAGES

• High volatility in the Crypto prices.

• could be used for money laundering as there is no central authority involved.

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BITCOIN

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source

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It is impossible to talk about Cryptocurrencies and not about Bitcoin. Bitcoin is the king of the Cryptocurrency world and it was the first Cryptocurrency to be ever launched.

Bitcoin was created in 2009 by Satoshi Nakamoto. It is the world's largest Cryptocurrency as there no other competitors even close to Bitcoin. Bitcoin has unique transparent nature, due to which the chances of fraud in bitcoin are close to none. The bitcoin cryptocurrency works on a Decentralized blockchain. It is not controlled by a central government, a bank or any central authority etc. It is spread, traded and stored all within the blockchain. Bitcoin has been a very successful Cryptocurrency since its invention.

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Bitcoin was indeed a benchmark in the Crypto World as well as the financial world. The main reason Bitcoin was originated was to overcome the Traditional Financial system which was not possible without the involvement of intermediaries. Bitcoin on the other hand provided P2P system which facilitated people alot

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ALTCOINS

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All the crypto assets which were launched after the creation of the Bitcoin are known as Altcoins

Altcoin is basically a combination of two words that is, alt refers Alternative and the coin refers to cryptocurrency

The altcoins were launched to overcome the issues found in the bitcoin such as the transaction issue. Bitcoin transaction takes 10 minutes to take place whereas in some altcoins it takes less than a minute to do so

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Here is the picture of all the top altcoins. Note how all the altcoins are still way beneath the Bitcoin level.

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FIAT CURRENCIES

FIAT currencies are normal currencies which are issued the Government of the respective country. Such as the USD, PKR, EURO etc

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WALLETS AND EXCHANGES

Lets talk about one of the most important things in the Crypto World, that is Wallets and Exchanges.

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WALLETS

Wallets are the safes for your crypto assets where you store your assets. There are two types of wallets:

• Cold Wallets: Cold wallets are those kind of wallets which stay offline. These type of wallets are less prone to hacking as they function offline.

• Hot wallets: hot wallets always stay online. You can recieve, send and store your crypto assets in it. These type of wallets are more prone to hacking as they are online.

example: Trust Wallet, Exodus, Mycelium

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EXCHANGES

Exchanges platforms in which you can trade your crypto assets. In exhanges You Do not have the control of the exchange as you're in control of your wallet. That is one reason why wallet is considered way safer than exchanges.
On Exchanges you can buy and sell Cryptocurrencies from the live markets. There is also a wallet within an Exchange which you can use by signing up on the exchange platform.

Examples: Binance, Coinbase etc

screenshot of my binance account

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Differences between Wallets and Exchanges

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Wallets

• these are mainly used to secure your assets

• Highly secured

• You cannot trade on wallets

• if you loose the key, it cannot be recovered.

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Exchanges

• mainly used for trading of assets

• Comparatively low level of security

• you exchange account key can be recovered.

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PROS AND CONS OF WALLETS AND EXCHANGES

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Pros of wallets

• highly secured. Cold wallets have very little chances of hacking.

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Cons of wallets

• you cannot trade on wallets

• the interface of wallets is not user-friendly

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Pros of Exchange

• exchanges have their built-in wallets which can be used for securing assets.

• can do trading.

• user-friendly

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Cons of Exchanges

• Comparatively less secured.

• more prone to hacking.

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CONCLUSION

The origination of the cryptocurrency in this world has been a really huge step. Infact, it will change the world further in the upcoming years as it has already influenced it as well.

Bitcoin is the King of the Cryptocurrency. Even when the prices of the Bitcoin are declining it is still above the prices of all the Crypto assets.

When trading in the Crypto market it is a very important point to keep in mind that you should keep your assets safe. For that Wallets come in handy and as well as exchanges. Some people think that if they are using an Exchange app they wouldn't need a wallet. But both of these applications are very important in the crypto market. If you have both Exchange and wallet you'll be less susceptible to hacking or any other risks that might occur.

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HOMEWORK QUESTIONS

1.) What is the difference between Cryptocurrency and the traditional Financial system? What are the Pros and Cons of Cryptocurrency (Write atleast five)

2.) What are the objectives behind the creation of Bitcoin?

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

4) 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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RULES

• It is mandatory to set 20% beneficiary to @steemit-pak

• Homework should be posted in the Steemit Pakistan Community

• NO Plagiarism.If you're found copying work you will NOT be rewarded any marks.

• Deadline: Monday morning 12 pm PST

• The assignment Post should be a Minimum of 300 words

• use clear watermark on the screenshots you use.

• use the tag #naqshraja1-psp #cryptosp #steemexclusive and #pakistan in your first four tags.

• comment you assignment post link in the comment section

• mention me somewhere in your assignment post

• if you have any questions regarding the lecture, feel free to ask in the comment section.

• top two posts will get booming upvote.

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Cc;
@steemit-pak
@hassanabid
@haidermehdi
@salmanwains

Regards,
@naqshraja1