Steemit Crypto Academy Contest / S1W2 – Reviewing Centralized Exchanges by @mohammadfaisal

Hey everyone! I hope you will be enjoying Crypto Academy by the steemit team. I am also here to participate in the crypto contest by the @crypto-academy which is about the Centralized Exchanges, and if you want to participate on this contest you can also participate easily as there are no any hard requirements and you can do it.

---

Join Contest:- Steemit Crypto Academy Contest Season 1 Week 2 - Reviewing Centralized Exchanges

---

_{Image Made by Me by} ^Canva

Discuss briefly Centralized exchanges and its Benefits to crypto users.

I want to discuss and define the Centralized system before going through the Centralized Exchanges.

Centralization means an organization or company in which the owners and other higher authorities have the power over every decision. The centralized system is opposite to that of Decentralized. In these organizations, individuals cannot do anything except accepting the orders of higher authorities.

Centralized systems have a main and central system through which they control each and everything and give different orders and the workers have to accept them. These systems also work like chains but in the chain, the main center is one and everyone has to follow the central system.

Centralized Exchanges are the exchanges which are used by the people to buy and sell their assets. These exchanges announces the current market price each moment and then they allow the users to buy and sell their assets at that price.

The Centralized Exchanges are the third parties or middle men who hold the assets of the persons. They trust in that middle man and the trades are done and controlled by that middle authority.

Daily life example of the Centralized Exchanges is a bank in which we give our assets to the bank and then the bank care, handle and manage our assets and keep them safe and sound. As we can stake our assets in the banks and can earn passive income or interest, Similarly we stake our crypto currencies in these Centralized Exchanges and can earn passive income.

Benefits of Centralized Exchanges

• Centralized Exchanges are stable because the decisions only come from the head office.

• There are proper rules and regulations provided by the higher authorities and everyone has to follow them otherwise they cannot survive here.

• There is unity in launching any project or in any decision.

• The Centralized Exchanges can easily make their basement in the start as well because all the authorities are only under the main head system.

• Decisions in Centralized Exchanges are simple because there is no need for consultation of anyone such as from the lower authorities.

What do you look out for when choosing an exchange to trade your crypto assets?

It is a universal rule that whenever any investor wants to do any investment or want to do business with any other person. One must looks out the benefits and drawbacks of that third party.

Similarly we look out some important things in order to use any exchange for the trading purpose. So here are some important things to be noted while choosing a crypto currency exchange.

• Firstly the crypto exchange should be reliable. We should do a complete research about the company owners and their share holders. Check the trading volume and the staking volume of the different crypto currencies.

• Then look at the terms and conditions of the exchange and read them carefully and understand their rules before investing or doing trading in that exchange.

• Then it is the time to look out at the transaction fee or trading fee of that exchange. So we should always choose an exchange which charge you low trading fees.

• The other major thing is that some crypto exchanges also offer some bonuses, so if we want to do trading then we should chose those exchanges which give you some rewards.

• Then keenly observe the community that how large is it and how many traders are actively using that exchange.

• The choice of the exchange also depends upon on the ease of use. We always prefer those things which are easy to use and easy to interact. So we should choose those crypto exchanges which are user friendly.

• Then we should look out whether the crypto exchange is offering insurance of your investment in case of any loss or hack of the exchange.

• Then there is need to check the security system of the exchange. The KYC offered by the exchange. We should look out if the exchange is offering us the two factor authentication, especially Google authentication.

• After that check the withdrawal limits and conditions as well as of the deposit limits. All the restrictions and verification of the deposit and withdrawal process.

• Then check how the exchange is verifying your identity. Some exchanges required your national identity card and your clear picture for the verification.

• Another important factor is that some have different prices than the original market. So we should always choose that exchange which offers moderate price range.

• Then check the number of crypto assets offering that exchange and the trading pairs of the assets. More the trading pairs an exchange has more efficient and reliable that is.

Review your favourite centralized exchange and explain its unique features

_{Reference goes}^Here

I am using binance exchange, the world's largest crypto currency exchange with almost 600+ crypto currencies and a lot of different markets. It has a large community. It is supporting almost 180 countries. It is my favourite exchange because of the lowest transaction fees.

_{Reference goes}^Here

It is user friendly and it is easy to use. The interface is simple and anyone can easily use it and easily understand it. It has a navigation tool as well.

_{Reference goes}^Here

It's security is also strong. Whenever you log in they send you an alert via email. And they send you verification code your mobile number and without putting that code you cannot log in. So others cannot access your account.

It has 2 factor authentication system. It also has Google authentication that you can enable band make your account more secure. The community of binance exchange is very large.

Binance exchange has the lowest trading fees and it is the another reason people give preferences to this exchange.

Binance has a launchpad from where new coins are launched at the discounted price. We can participate in the binance launchpad by staking our assets in that initial coin offering.

Then binance supports P2P trading which is the wonderful thing. We can buy and sell crypto currencies in our country currency and there is no any fees. We can also buy crypto with our credit card directly.

Is there anything about your favorite exchange you will like to be changed? Discuss.

We know that there is nothing which is perfect, similarly binance is also needs some changes according to my opinions to make it better for the users.

It has been seen that the accounts of different people were banned without any authentic reason. It is the greatest drawback of binance. And it should be resolved in order to make it better and provide an amazing experience to the users. As it is a Centralized Exchange so no one can claim his account back and cannot interact with the higher authorities.

So binance should overcome this thing and there should be a proper portal and channel through which users should be guided in order to protect their account from bring banned. And they should warn the user at least three times and users should be given time to resolve his or her issue except to ban the account directly.

Verification Process of binance also should be easy. We know that the KYC process of binance is really tough and you have to provide your personal documents which are enrolled in your Government sectors.

Sometimes it gives useless and random errors whether the documents and other things are perfect. Sometimes it ends it's facial verification without processing and give output of verification failed.

And the verification process is also time taking. Indeed in some cases they verify your identity immediately but in some cases they take a lot of time and at the end give verification failed process.

So it should be changed and it should be automatic, in order to give users better experience and make their work easy.

Separate Country Chat Portal should be launched for each country so that if users face any issue can discuss there in the general chat of their country. In this way the traffic and users will increase and it will help to make it better.

What shortcomings do you see on centralized exchanges and how do you think user funds can be protected since we don’t have access to our wallet private keys?Exchanges

Some of the Shortcomings of the Centralized Exchanges are given below:

• In Centralized Exchanges the working of the is slow.

• In a centralized exchange decision are done by the higher authorities and slower the speed of work due to delay in decisions.

• we cannot use the nodes of the Centralized Exchanges.

• The control all over the exchange is not proper if any error occurred in the exchange then it took a lot of time to do it right and the whole system will remain close due to the centralization system.

• Another major disadvantage of centralization is the burden of work which is only over a single group.

How do you think user funds can be protected

We know that in the decentralized exchanges there is a private key which is yours and no one have that key. And your funds are safe and sound untill your key is in your pocket.

In the Centralized Exchanges there is no any private key but these exchanges have introduced two factor authentication systems and verification codes and these codes are changed all the time on each log in and each transaction.

Your account in the Centralized Exchanges is linked with your email and your phone number. And whenever you log in they send code to your email as well as to your phone number. And without putting those correct codes there you cannot access your account.

So your funds are safe and sound because no one have any access to your personal email and phone number.

In order to increase your security you can also enable Google authentication which is another great thing for the security purposes and to safe your funds.

Now the question arises if the exchange is hacked then what will happen ? For this problem you should not keep your all the funds in one exchange. Always keep your funds in different exchanges and in this way you will be able to save your funds.

Conclusion

Centralized Exchanges are playing an important role in the era of crypto. They offer buying and selling of the crypto currencies at the market prices. And without the Centralized Exchanges crypto world is empty, because without these Centralized Exchanges we cannot buy and sell our assets easily. And we can face problems in tradings.

But you should be careful in order to choose any centralized exchange. So firstly look out the benefits and drawbacks of any centralized exchange and check that exchange according to your requirements and then use that one and do trading.

Always secure your account by spying high security by activating two factor authentication. And in this way you will be able to safe your funds.