Greetings SoMee Family

Today I will be teaching you the difference between an exchange and a wallet

1. WHAT IS A WALLET?

A wallet is a case or safe that could be digital or physical, and used to store assets, information, or valuables they are basically two(2) types of wallets

i. Cold wallet
Ii. Hot wallet

A hot wallet is a wallet that is connected to the internet or could be called a digital wallet and vice versa, a cold wallet is a wallet not connected to the internet


2. WHAT IS AN EXCHANGE?

An exchange is a platform where currencies are being traded for another, in the place of cryptocurrency, it's a place where cryptocurrencies are being traded from one currency to another

It also reflects current market prices and can convert from one coin to another as the user wishes

3. DIFFERENCE BETWEEN AN EXCHANGE AND A WALLET

3a. Just like I explained above, the wallet offers high security since it gives your private key to you and is not accessible by anyone or even the organization, in the same vein, the exchange can also access your private key and you be hacked if mismanaged

3b. The wallets can not perform operations like buying and selling cryptocurrencies, but these operations can be carried out on the exchange platforms

3c. The wallets do not need a KYC registration of users, unlike the exchanges that need user identification to create a verified account.

I hope you learned a lot, no knowledge is a waste.

#AweSME #SME #SoMee #someeofficial #crypto #upvote #trading #learning

Greetings SoMee Family Today I will be teaching you the difference between an exchange and a wallet 1. WHAT IS A WALLET? A wallet is a case or safe that could be digital or physical, and used to store assets, information, or valuables they are basically two(2) types of wallets i. Cold wallet Ii. Hot wallet A hot wallet is a wallet that is connected to the internet or could be called a digital wallet and vice versa, a cold wallet is a wallet not connected to the internet 2. WHAT IS AN EXCHANGE? An exchange is a platform where currencies are being traded for another, in the place of cryptocurrency, it's a place where cryptocurrencies are being traded from one currency to another It also reflects current market prices and can convert from one coin to another as the user wishes 3. DIFFERENCE BETWEEN AN EXCHANGE AND A WALLET 3a. Just like I explained above, the wallet offers high security since it gives your private key to you and is not accessible by anyone or even the organization, in the same vein, the exchange can also access your private key and you be hacked if mismanaged 3b. The wallets can not perform operations like buying and selling cryptocurrencies, but these operations can be carried out on the exchange platforms 3c. The wallets do not need a KYC registration of users, unlike the exchanges that need user identification to create a verified account. I hope you learned a lot, no knowledge is a waste. #AweSME #SME #SoMee #someeofficial #crypto #upvote #trading #learning
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