Steemit CryptoAcademy Contest/S1W2 -Reviewing Centralized Exchanges by @ruthjoe

Hello my Steem lover

Its so good to be a part of this challenge this week. I thank the steemit team for the idea, indeed its making comments very interactive and fun too.

This weeks theme is tittled Reviewing centralized exchange

Introduction

With the emergency of cryptocurrencies, the life of many has been transformed for good. Since there is something called cryptocurrency, the need to house and trade these cryptocurrencies aroused. And then we have the crypto exchanges to help us out with this issue.

what then is a crypto exchange?

Since crypto currencies are not seen with the physical eyes, they only exist digitally, then what every will be used to house it or trade it must exist digitally too.

Crypto exchange are seen as an online platform,which allows forms of cryptocurrency trading such as selling, buying and even short time storage of cryptocurrencies. An exchange just like the word suggest is a place where you give to receive another thing.

In an exchange, cryptocurrencies can be traded either to get another cryptocurrency or to get fiat.

Some one who is new may be wondering so why would someone go as far as having such platform called an exchange,what do they gain? Well, they make their profits through the fees they charge when transactions are carried out on the platform.

Types of exchanges

There are two types of exchange and they are;

• Centralized exchanges : examples include Binance, poloniex, kraken, Bitstamp, kucoin etc

• Decentralizes exchanges: examples are Blocknet, Airswap, Barterdex, etc.

Discuss Briefly Centralized exchange and its benefits to crypto users

Now that we have a knowledge of what an exchange is it is time to tell you what a centralized exchange.

A centralized exchange are exchanges that are controlled by a central body hence the name centralized.

A centralized exchange is an online third party platform for cryptocurrency transactions such as buying and selling of cryptocurrencies. The centralised body incharge of this platform are incharge of the users private key. What is left with the user are password.

In a centralized exchange, users do not have total control of their funds because they do not have access to their private keys. Therefore centralised exchange does the job of a middle man so that transaction can be done between the seller and the buyer.

Benefits of centralized exchange to crypto users

• Security of transaction carried out: Centralized exchange offers user security when a transaction is carried out on the platform. These ensures that transactions are caried out successfully.

• Easy to use : one benefit centralized exchange offers it user is its easy to use nature which makes the platform friendly especially to those using it for the first time.

• Exposes users to the Access to alot of Crypto currencies: This benefit can not be overemphasis. Without the exchanges there are crypto asset that users may not know about or trade. But with the exchange users are exposed to varieties of cryptocurrencies to choose from.

What do you look for when choosing an Exchange?

There are several things i look out for when choosing an exchange and below are a few of them;

• Security of the Exchange : i dont just see an exchange and decide to use it when i have not proven how secured it is. I have lost some money in the past so i would not make mistakes anymore by ignoring the security of the platform. I would check if the exchange has the two factor verification and every other necessary things i need to know.

• Transaction Fee : when choosing an exchange the next thing i look out for is their transaction fee. I check how much charge they take because i want to make profit too. Some platform fees can just be so much so am careful to findout the fees for transaction.

• Variety of cryptoCurrencies available on the exchange : i love varieties therefore, i check for the number of crypto currency available for my use. There are some exchange that may not have the crypto i want to trade so am careful with my selection.

• I check if it is easy to use or complicated: i will always check out the exchange i want to use if it is easy to use or complex. I do not like complex exchanges so i go for the one that is easy to use.

Review your Favourite Centralized Exchange and Explain its uniqueness

My favourite centralized exchange is the Poloniex exchange.

Source

Poloniex is a centralised crypto currency exchange having history as far back as 2013. Poloniex was established by Tristan D'Agosta. Poloniex exchange is allows the trading of crypto currencies on the platform having over 350 crypto assets available on it for the users.

Poloniex is designed to have a very fine user friendly screen aside that it is easy to use by the users especially to new users. Poloniex exchange gives magin trading and leverage ranging 2.5x.

On poloniex exchange, after opening an account, deposits are only made using cryptocurrency. Another thing about poloniex is that its verification process is not so complex and that one reason i like it. It has 3 levels of verifications. The 3 level of verification are for traders who does large trade. The 2 level of verification involves the registering of the users picture, phone number and probably contact adress of user. While the first level verification involves the registering of the users name, email address and the country of residence.

Poloniex is one of the major exchanges we have today. Poloniex has a wallet in it too

friendly interface of poloniex

Uniqueness features of poloniex Exchange

• Ploniex Exchange provide users with an option to lend asset on the platform

• Poloniex Exchange keeps the deposit made on the platform offline for safety purpose.

• Poloniex Exchange has a low transaction fee

• Easy to use: Poloniex exchange is so easy to use.

Is there anything about your favourite Exchange that you would like to change? Discuss

Poloniex is my favourite Crypto currency exchange but two things i would like to be change

• The fact that fiat currency can not be deposited only cryptocurrency. I would really like an adjustment to be made in this area. Some times a user may not have the crypto asset needed and has just fiat. I think if this is looked into, it will make the platform better.

• Costomer care service: i have heard stories that poloniex costomer service has not really been so well, i mean there is no prompt response to user when the user has an issue. I think it should be looked into or changed.

What ShortComing do you see on a centralized Exchange and do you think users fund can be protected,since we do not have access to our wallet private keys?

• Centralized exchanges have a shortcoming of been prone to hacking and thieft because users do not have access to their private keys. History has proven that a centralized exchange can be hacked and there are some that has been hacked in the past.

• large transaction fees is one of the short coming for some centralized exchange especially when a large trade takes place.

• For some centralized exchange verification process takes a very long time.

• Some centralized exchange are not costomer care service friendly meaning they are not always there to assist the users when account issues arise.

I think users funds can be protected in centralized exchange when the security of the centralized platform is tightened to avoid hacking and theft. Secondly i would suggest that the users be given access to have their private keys, this would make the users trust the platform more.

Conclusion

Centralised exchange has really been helpful to the cryto space and its importance or benefits can not be over emphasied. Centralised exchanges has given us exposure to a whole lots of cryto currencies and by the way, i wonder how crypto trading can be done without our centralized exchange or even exchanges in general, so am glad we have the invention on exchanges especially the centralized.