Steemit Crypto Academy Contest / S1W2 - Reviewing Centralized Exchanges by @suzybest
Hello great people i trust we all are doing great because as for me, am doing well. I am very happy for the season of Steemit engagement which allows everyone to freely involved in the engagement and equally sharing of quality content. Therefore, i will be discussing on the theme: Reviewing Centralized Exchanges below.
• Discuss briefly Centralized exchanges and its Benefits to crypto users.
I want you to have an understanding that centralized cryptocurrency exchange is a vehicle that is very important for most global digital currency investors in carrying out transactions.
These platforms are online platforms which helps users in buying and selling of cryptocurrencies and this is made easier for investors to easily buy and sell or hold cryptocurrency for a resale in future when the price of such increases. Note, many investors normally see the centralized exchange as misleading this is because digital currencies are usually billed as decentralized.
You should have a full knowledge that centralized cryptocurrency exchange make used of middle men to enable them carry out transitions and this is what refers to as centralization. Here, buyers and sellers have full trust of the middle men in handling their assets as well as transactions. This centralization can be seen in the banking sector where the customer will walk to the bank and deposit his cash to the third party for safety and whenever he/she need the cash, a demand for it will be placed and the cash will be given to the customer back.
After a brief explanation about what centralized exchange is, now i will be pointing out some of it benefits below:
• User-friendly: Trading / investing in cryptocurrencies as a beginner is made simple because the the offers made by the centralized exchanges.
• Reliability: When it comes to trading and transactions, centralized exchanges has made provisions of external security which serve as a security to the account of users. Example Is the Google Authenticator which is connected to the centralized application for the safty of the assets of users.
• Liquidity: In the centralized exchanges, there is always high liquidity
• Volume: Because of the user friendly environment, the centralized exchanges are still recognized for huge majority of trading volume.
• Speed: Because of its fast transaction speeds, it helps in contributing to better user experiences and also enable complex trading types. I can say that in centralized exchanges, buying and selling are carried out instantly at any time depending the choice of customers.
What do you look out for when choosing an exchange to trade your crypto assest?
As an investor, before you venture into investing in any exchanges, you need to make proper research in order for you to have an inside of that exchange you wish to invest on. Therefore, below are some of the criteria an investor should consider before investing in such exchanges:
√ Accessibility: You should make proper enquiries whether you can buy and sell crypto on certain exchange due to your jurisdiction and the regulations governing the nation or country.
√ Security Measures: You should be able to a test if the security of the exchange you want to invest your fund on is secured.
√ ** Fees:** You should have an idea over the transaction cost attached to either buying or selling of your asset which is the fees.
√ Tax Information: In any centralized exchanges, the tax information is very important. This is because when an exchange is not paying her tax, it accumulates and this might lead to liquidation of such exchanges.
√ Liquidity: Here you need to know the volume been traded and the daily supply through the coinmarketcap
√ You have to consider the Coins offered
√ You have to check if there is provision of educational materials / tools to assist users understand the activities of that exchanged
√ It should have the capacity of Storing assets of customers overtime.
√ You should equally have the full knowledge on how deposit and withdrawals are carried out on the exchange.
√ You should make an enquiry and also know what is the minimum and maximum withdrawal for a day.
√ You should know whether the exchange is legalised or registered under the country's law that govern companies. Etc.
Review your favorite centralized exchange and explain its unique features
Since 3 years now that i have been using Roqqu exchange, it has been serving me well in terms of transactions and this is the reasons i have choosen it to be my favourite centralized exchange. However, i will be delving into its review in details below:
• Roqqu is registered and well recognized and trust worthy as a centralized exchanged in Nigeria. Roqqu was launched in July 2019 and its well known as a Nigeria crypto exchange as well as payment gateway.
• The co-founder / Owner of Roqqu exchange is Uche Nnodim, he is well known as one of the young Nigeria entrepreneur and this exchange has it location in Lekki, Lagos state of Nigeria.
• Roqqu exchange offers brokerage services which serve as an assistance to Nigerians in order to make ease worldwide payments.
• Note, Roqqu exchange has equally make it easy that users can make payments of electricity bills, TV bills, buying of data and recharge cards of all networks and more at users convenience
• According to statistics, Roqqu has over 250,000 users, and has been able to carry out $20 million transactions since it was launched in 2019.
Below are the unique features of roqqu exchange and these have made the exchanged outstanding:
• It offers instant buy and sell order
• It offers Crypto Payment Gateway
• Roqqu exchange has a mobile App
• Its security is very high and recently it make use of Google Authenticator for transfer of funds / crypto.
• It transactions are fast and the system is reliable
• Presently, the customer's support channels are very active.
• Roqqu make use of P2P in deposit and equally direct payment to the Nigerian banks and you can equally deposit using you bank but you must not include crypto when making deposits.
• There is provisions for customers to save their funds for specified period and also get interest in staking their funds.
Is there anything about your favorite exchange you will like to be changed? Discuss.
What i will like to be changed is the withdrawal aspect. I will like the team behind roqqu exchange to try their possible best to upgrade their system of withdrawal. This is because anytime i want to make withdrawal to my p2p wallet account, P2P may not be available and sometimes it can take hours before P2P comes online which is a limitation to the system.
However, the direct withdrawals to local Nigerian banks should be upgraded too to a point that it should be instantly. This is because whenever i carry out direct bank withdrawal, it takes over 6 hours before it arrived.
Once i sold Shiba inu coin worth #100,000 and only #60,000 was credited to my account and i laid my complains to customer care and they said there is no missing fiat in my account but after a long time which i continue sending them viral messages, there later credit back the coin to my accout insteed of the cash of #40,000 and as at then, the price of Shiba inu coin has fallen and i was not happy.
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 are the disadvantages of a particular system and i will be spelling out the shortcomings of centralized exchange below:
Strick Regulations: All centralized exchanges are licensed by the government, depending the country it's operating from.
Fewer Options: i discovered that investors on centralized exchanges end up trading variety for safety of their assets
Risk of Bankruptcy: Since it is a private corporation, it is likely to liquidate at anytime.
Transaction fees: there is high charges when it comes to transaction in centralized exchanges this is to help them to meet up with their services and convenience especially when trading with a high amount.
Users information can be gotten by hackers here a hacker just need to bypass the defenses of the company which is running the exchange in order to gain all the financial information of users he needed and this can be very dangerous and it it make the exchange to liquidate.
However, since users don't have access to their wallet private key, i will encourage all centralized exchanges to make use of Google Authenticator which will serve as a private key for withdrawal of funds and crypto before transactions can be successful. I believe this will help to improve security in the centralized cryptocurrencies exchangeses.
From the above, we have been able to have an inside of centralized exchange and its future using Roqqu exchange as my favourite centralised exchange. If all i have mention above can be put in place in order to safeguard users assets, then centralized exchange will be free from hackers and also the transaction cost should be reduce to enable more users to make use of these exchanges.
Thank you for your time.
You have taken real time to explain centralized exchange and i have really found values from your explanation. Keep it up.