Steemit Crypto Academy Contest / S1W2 – Reviewing Centralized Exchanges by @nancygbemi
Hello Steemians
Greetings my lovely Steemians! Welcome to the month of May, I trust you all are doing good, I want to sincerely thank the organizer of the great contests Steemit Engagement Challenge for the opportunity to participate in Crypto Academy Season I Week 2 talking about Reviewing Centralized Exchange let's get started.
Before I will Review Centralized Exchange we need to know what Cryptocurrency Exchange is all about and the types too.
Cryptocurrency Exchange is also known as DCE digital Currency exchange which is a computerised medium that authorize exchange of digitalize asset from users for various cryptocurrencies or fiat currency.
Cryptocurrency exchange serve as negotiator amid a buyer and a seller and earn through transaction fees and also exchange brings liquidity in a standardized trading environment which is secured.
The reality of exchange platform as enable in contemporary years the mass usage of cryptocurrencies as long as it's able to exchange, lacking big adversity in cryptocurrencies fiat money around the universe with low rates and its better than traditional method and its attractive.
Exchange as provide the storage of cryptocurrencies in various wallet and also buy visual currency with bank transfer, credit card, debit card, p2p and PayPal with user in platform and a method to make cash above cogitative marketplace. The two types of exchange are Centralized and decentralized, so after talking about cryptocurrencies exchange lets talk about one of the type Centralized Exchanges
Discuss briefly Centralized exchanges and its Benefits to crypto users.
Centralized exchanges(CEXs) is a company that accommodate cryptocurrency commerce on a full scale, using a comparable business model to historical asset exchange just like stock exchanges. in centralized exchange the organization has adequate control over all Businesses that take place on the medium/platform. We the user we don't have the avenue to the private key of their account, that mean we place high confidence on the exchange administrator as Businesses can be process through mechanisms distribution and authorized by fundamental Authority.
Centralized exchanges normally provide an extra services, like crypto asset custody, that is the user deposit their crypto asset before it can be traded or before trading take place and example of centralized exchanges are poloniex, Bittrex,Coinbase, Bitfinex, kraken and Binance( which is presently the biggest exchange)
Centralized exchanges keep digital order books, which are open buy and sell orders comprising of prices and volume, they make Known the recent market price fixed on the last price an asset will sell and they also combine buyer and seller.
Benefit of centralized exchanges
Dependable:- Centralized exchanges is really dependable because it provides security when it involves transaction and trading and also reliability.By aiding the transaction through an advance centralized medium and there's excessive level of comfort in centralized exchanges.
For digital currency investors the Centralized Cryptocurrency exchanges is a very dependable medium for transacting whereby they buy and sell cryptocurrency holdings.
Friendly usage:- Centralized exchanges provide starter investors a friendly, intimate way of investing and trading cryptocurrencies. Against the using of peer-to -peer transactions and Crypto wallets which is complicated, Centralized exchanges user can see his/her account balances, log into his/her accounts and generate transactions through utilization.
What do you look out for when choosing an exchange to trade your crypto assest?
There are several things to look out for when choosing an exchange to trade your crypto asset like liquidity, trading fees, Reputation, security assets choice etc but I will explain three.
I Look out for Liquidity:- The first move in investing in cryptocurrency is to grasp liquiditys function in Crypto, Dealers demands liquidity so they can make trade at any convenient time without touching the market too much, that is an exchange should have a volume high enough of orders passing through it's order books on any stated day.
I Look out for Trading fees:- Exchange get their money by removing fees from most or all the transaction done, Trading fees means a covered cost to Buying Cryptocurrency. For example Binance has their exchange Tokens, The token established these exchange and make use of them to allow owner's deduct trading fees.
I Look out the Reputation:-
It's important for anyone focusing at cryptocurrency exchange site should contemplate looking at it's online Reviews. it is necessary the individual do research on what past and current user of a specific exchange have said about it.
Review your favorite centralized exchange and explain its unique features
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My favorite centralized exchange is Binance and Binance is presently the biggest exchange
I love using Binance because it's safe and secured. Binance is a computerised exchange where Cryptocurrencies is traded by users and most common cryptocurrencies are traded. It is founded in 2017
Binance is a blockchain that is preeminent and
make infrastructure for cryptocurrencies with a financial product suite that includes the biggest digitalize asset exchange by volume. Binance is dedicated to raise the freedom of money for users, and feature an unmatched portfolio of crypto products and offerings including Education,data and research, trading and finance, investment and social good.
Binance makes available Crypto wallets for trader in order to keep electronic funds and also Binance have blockchain based token.
In Binance he/she can earn interest using cryptocurrencies due to their supporting service.
- One of the unique feature of Binance is the switching between Pro and Lite(one-click Switch)
Trading and buying Bitcoin is quite easier with Binance Pro while not easy with Binance Lite. I love this feature because you can switch at anytime Base on your internet speed and trader levels.
- Earn quiet income through staking in Binance.
- Referral program by inviting friends.
Binance give straight transaction with your Civil currency and communicate your language ( Local support system).
Binance support p2p
Is there anything about your favorite exchange you will like to be changed? Discuss.
I will love them to change the minimum amount of trade in Binance, they should make it lesser than 10$ and it's will increase the rate of transaction if it's been reduced. It will help a beginner that just started trading so he/she won't get losses
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?
Shortcomings on centralized system
The centralized exchanges are independent organization,so the money is in their hands is in product a loan which an investor gave to them.contrarily there's a loan, since we've not hear any news of the bankruptcy of any exchange...
Theres a high possibility that it might happen in future again.
Another shortcomings is strict Regulations, Centralized exchanges is authorized by government, so because of these they have to obey all the government rule. Data of exchangers can be accessed by federal agencies and its not a good deal for investor who need privacy.
how do you think user funds can be protected since we don’t have access to our wallet private keys?
All I will say is that centralized exchanges can be hacked so it's good to keep cryptocurrencies in a decentralized wallets where he/she as power over his/her money, private key is to protect and control the account, safeguarding it from wrongs hands, centralized exchanges help to hold the key and can be hacked and the user is left with nothing.
Woow you have done well in explaining about the Binance exchange platform in an in-depth manna which is quite easy to follow. I see many of us use this Binance exchange because it's also my number 1 top centralized exchange because of its numerous advantages to it's users which also in turn offers alot of features to it's users
Thanks once more for this great article dear
Exactly sir,Alot of people uses Binance because it's the top centralized exchange and it has unique feature.
Thanks for the compliment sir best of luck to you dear friend 💃💃
You have done well in helping me know what crypto exchange is all about.
Thanks for reading through my post 🙏
Thank you @nancygbemi got the invite,
I will love to appreciate the efforts that you put in explaining exchange, and the importance of keep our Cryptocurrency save in decentralized wallet since centralized can be hacked
Thanks for reading through my article 🙏
You have written well about your favourite centralized exchange, myself binance is my favourite and the the staking in the platform gives me joy, the p2p is also a unique feature which the platform uses that makes it outstanding. Best of luck in this contest my dear friend.
Wow am glad Binance is also your favorite, yes the staking and p2p is very unique. Thanks for taking your time to read my post friend best of luck to you too in this contest @simonnwigwe
Hello friend you have done so well by analysing a centralized crypto Exchange and am impressed about the way you discussed about Binance exchange which is one of my best Exchange.
Thank you so much for sharing this post with us.
Best of luck to you.
Thanks @jasminemary for taking your time to read my post. Yes Binance is one of the best exchange and I love Binance.
Thank you for your review. It is very clear why you have chosen Binance as your exchange.
I was actually debating if I should not use both forms of exchange 😊
Yes ma, you can decide to use both ma
Thanks for reading my article 🙏
Good work so far in your explanation of centralized exchanges. I appreciate the part in which you mentioned as shortcomings. You are right.
1: Monopoly:
when a system become centralized it enjoys monopoly and can act as it wishes. High possibility of disappointment by such systems since ones fate are relied on their integrity. What if the opposite becomes the case?
You equally mentioned governmental control, and that is another important area since this undermines the very essence of cryptocurrency in the first place.
You made good points and I appreciate your presentation.
Exactly sir, it really enjoys great privilege because it been controlled by them, since they are incharge of the private keys.
Yes government has really work against the feature of cryptocurrencies because they have the authority.
Thanks for taking your time to read my post and also for the compliment am grateful sir🙏
Thank you very much @nancygbemi for giving this detailed explanation of centralized exchange.
I most especially like the analysis you made of binance, it's really nice, keep up the good work.
Here's the link to my contest.
I will love to hear from you, kindly upvote too 🥰
Thanks for reading every details of my article about centralized exchange and also for the commendation am grateful 🙏
The fact that the government has banned the use of crypto-currency had really become a great shortcoming in the use of crypto-currency in Nigeria
Nice post♥️
Exactly sir, thanks for reading my article 🙏