Steemit Crypto Academy Contest / S1W2 – Reviewing Centralized Exchanges by @sikan-eyen

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PRELUDE:


It is with utmost pleasure and a ting of excitement i write today in the #steemitcryptoacademy community as it is my first time. Thanks @crypto-academy. Actually i really tried entering for week1 but daily activities came flooding.

Accept my congratulations for being inclusive of the 7 communities selected for the Steemit Engagement Challenge !!!

WHAT YOU SHOULD KNOW ABOUT CRYPTOCURRENCY EXCHANGES

Pause!!!

You are probably expecting a jump into all pertaining to centralized exchanges and it's features, well you are right, that is the purpose of this publication.

But first i thought it pertinent to give you a short background on cryptocurrency exchanges which is; Centralized exchanges and Decentralized exchanges.

Hendrith Vanlon Smith Jr quotes thus:

When new things emerge in our world, its best to put some time into researching them and trying to gain an understanding. With that understanding, you're then able to think about and plan for the new business applications for those things and the new ways in which your business may profit from them.

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source: https://www.rawpixel.com


Over the years, crpto users and lovers have plunged deeply into the digital world where they make their various transactions on a day-to-day basis.

You will agree with me that a cryptocurrency exchange platform is needed before trading any of such assets which is bringing us back to what a cryptocurrency exchange is.


Crytocurrency Exchange otherwise known as a Digital Currency Exchange (DCE)


A cryptocurrency exchange is an online platform or a digital market place with set rules and regulations which enables one to buy and sell cryptocurrency / digital currencies making it possible to trade one cryptocoin for another.

Asides buying and selling, there are other transactional activities that could be achieved including; trading, staking, even lending and borrowing actions and also, conversion of cryptocurrencies.


The history of these currencies are traced as far back to 2004 when these digital currencies were seen as illegal and were being shutdown not untill 2008 when decentralized crypto bitcoin was launched opening the floor as others starting gaining grounds in the digital world.

As at 2009 more came up although were not brought to light as they were on testing mode.


With over five hundred exchanges presently on CoinMarketCap with this number on increase as the months progresses, many countries of the world have embraced this platforms for example; Japan, US, Switzerland e.t.c with these countries setting out their individual rules guiding its regulation.


There are two types of crtptocurrency exchanges:

💱 Centralized Exchanges (CEXs)

💱 Decentralized Exchanges (DEXs)


Comparison have constantly been made between these two exchanges.

Both are online digital market places where buying and selling activities takes place but some services differ them like the fact that centralized exchanges requires license, prone to security risk, faster service delivery to mention but a few while decentralized exchanges takes longer time in executing transactions, requires no form of license from bodies that set regulations, and also characterized by zero chances of a hack attack and operates on peer-2- peer transactions without the interference of a third party. They also do not transact fiat currencies for cryptocurrency. They include Bitcoin, Bancor, Uniswap, Justswap, EtherDelta, Airswap, Kyber Network among others.

SURVEY BY KPMG JUST RECENTLY IN FEBRUARY, 2022, SHOWS THAT CENTRALIZED EXCHANGES IS MORE POPULAR THAN DECENTRALIZED CURRENCIES.

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CENTRALIZED EXCHANGES & BENEFITS

A centralized as explained above facilitates the buying and selling between digital asset like ETH and BTC and fiat currencies such as US. dollar, the Euro, the British Pound, Indian Rupee on the market place.

A third party stands in the middle in facilitating and monitor transactions for the users, here users do not have a direct linking.

A centralized exchange operates similar to our local banks.


Some Examples of Centralized Exchanges includes:


💱 Binance — very popular with large trading volume. Birthed in 2017 in Shanghai, China. Rated high.

💱 Poloniex — Poloniex could be entered from our various STEEMIT wallet. Located in the US and founded in early 2014 .

💱 Bittrex — In the United States, Bittrex was founded in 2013 by Bill and is coming up gradually in terms of its interface update & features.

💱 Coinbase — Coinbase exchange was founded far back in middle 2012 by American Brian making purchase of cryptocurrencies simple. Coinbase exchange is loved owning to the fact that you can invest directly with USD.

💱 Kraken — Having been established in 2011 by an American known by the name Jesse Powell with low fees transaction. Kraken is one of the first and oldest exchanges.

💱Bitswap — In 2011, first ever exchange that was developed in Luxembourg in Europe by N. Kodric.


RECORD HAS IT THAT 95% OF DIGITAL TRADES WERE PERFORMED WITH CENTRALIZED EXCHANGES.


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WHAT I LOOK OUT FOR WHEN CHOOSING AN EXCHANGE TO TRADE MY CRYPTO ASSETS

Certain things lure me into choosing a particular exchange to trade my cryptocurrencies.

LOW FEES:

Most importantly i look out for exchanges with relatively low transaction fees in performing my transactions in the digital market.


POPULARITY:

I check out on how popular and well recognized that particular exchange holds to itself because i feel it determines how much worth its users places on it.


SERVICE SPEED:

This is very practical. Exchanges with top speed in rendering transactional services wins my heart instantly. There is nothing more satisfying.


FIAT CURRENCY: Anyday, anytime my preference goes for exchanges that executes fiat currency servives.


FEATURES: Exchanges with unique and amazing features should always come to mind.


RELIABILITY: The fact that i think of ease , satisfaction and timely processing of transactions whenever i intend to trade on an exchange is important to me.


ACCESSIBILITY: In Nigeria, my country for instance, cryptocurrency was banned in affiliate with any financial institutions.

So in many other countries of the world where set out rules and restrictions are being made. I look out for this.

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MY FAVORITE CENTRALIZED EXCHANGE & ITS UNIQUE FEATURES

MY FAVORITE CENTRALIZED EXCHANGE IS BINANCE.

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source: https://www.pixabay.com


Binance is the largest cryptocurrency exchange in the whole wide world . Founded in 2017 by Changpeng Zhao in Shanghai, China.

It records the largest by trading volume and offers users a wide choice of selection of cryptocurrencies for their trading goodness. It offers over 65 currencies with over 70 million registered users.


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source: https://www.pixabay.com


Binance posses two-factor authentication making user profile and transactions safer.

STEPS IN OPENING A BINANCE ACCOUNT

💱 On your browser type 'www.binance.com' or download the Binance App from playstore.


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screenshot demo from my infinix S4 device


💱 Input phone number and email address then click 'Get started'

💱 Input your information and data then register.

💱 Binance will verify your details.

💱 Enable two-factor authentication.

💱 Deposit your funds.

💱 Buy crypto.

💱 Enjoy your trading.

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CHANGES I WOULD LOVE TO SEE EFFECTED ON CENTRALIZED EXCHANGES

Issues rising on security have repeatedly been raised about centralized exchanges . History of hacked accounts have been reported and is truly really alarming due to the fact that personal information are being inputed with a third party overseeing the transactions.

This is my area of concern as pertaining centralized exchanges and i hope for the platform to be security tight and hack resistance.

This is one way user funds can be protected as there are no access to one's wallet private keys.

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IN CONCLUSION

I would sum up by saying ...

It is very phenomenal for one to critically evaluate and go through backing up with adequate research in order to ascertain an exchange that suits your preference and is best for you.

Revenue data could be retrieved from the CoinMarketCap, as fluctuations hits the market.


THANK YOU ALL AND WARMEST REGARDS.

Sort:  
 3 years ago 

You actually explained well about exchange platform,and from the looks of things binance seems to be your best. Looking at the transection cost, speed and the fee is always very important before choosing any exchange platform.thank you for sharing your knowledge with us

Thank you for your honest review, i appreciate. Binance is my best given its unique features in the market. These factors need to be put into consideration.

 3 years ago 

Yes my dear you are right, anyway we hope for the best from the team. You are welcome

 3 years ago 

Hi @sikan-eyen,

Thank you for posting and participating in this contest.You have defined crypto exchanges and its types.

Definitely,it is important to look at transaction speed,cost and popularity of an exchange before choosing it.

It would be great for centralized exchanges to have a strong security to prevent users from losing their funds in case of cyber attack.Binance is my best exchange too.Yiu can read my entry as well.

Regards!!

Am glad to learn that we share likes on the choice of centralized exchanges.

Binance is really handy.

On cyber threats characterized to the centralized exchange its really becoming scaring and i hope for changes.

Thanks @samuel20

 3 years ago 

Indeed everyone is much concern about their assets so a better security will help protect clients assets and prevent hacks into the system. Binance was launched six years ago and has now been on top of many exchanges. It is a great platform with unique features which are easy and friendly to use. Thanks for sharing your entry and good luck.

Yes feiend, Binance tops the charts.
Our funds needs to be secured with users not panicking over the unknown. It obviously is a great platform.

Thanks for stopping by

 3 years ago 

Wow friend from your post I see you are really knowledgeable and at same time in love with the exchange called Binace. I guess I would start developing interest in the exchange.

Thank you so much, i think you should give your thoughts a trial. You Would love it.

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I think you did a great job. These tasks are not easy for me. 🙈I had to read a lot before I could do my article.
Strongs for the next one🤞🏻

Thanks so much @patjewell for cheering me up with words of encouragement, its not easy especially when one does not dwell deep in those areas.

I will improve with time, thanks again.

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