Steemit Crypto Academy | Homework Task 2 for @gbenga - Cryptocurrency Exchanges and Market Capitalization

Hello Everyone,

This is my homework task for The Steemit Crypto Academy Week 2 by @gbenga

This time he explained about Cryptocurrency Exchanges and Cryptocurrency Market Capitalization.

Task:- Will You Keep Your Crypto Assets in a Wallet or on an Exchange?

Make a post as to why you would prefer to keep your asset in one over the other.

This is a very interesting topic and I enjoyed the reading and the knowledge shared by the teacher is very much useful. Anyone who enters in cryptocurrency market required knowledge of exchanges as well as the market cap without the basic knowledge it's not easy for anyone to survive longer in this segment. that article explained well in detail the pros and cons of centralized and decentralized cryptocurrency exchanges. I believe that both types of exchanges have their own importance depending upon the requirement and purpose after transactions. While we get more control with these implied exchanges but at the same time centralized exchanges of her bitter features and fast transaction processing along with a user-friendly interface.

I started my crypto journey in 2017 last quarter when the Bitcoin bull run was started at that time I was not aware of all these things like centralized or decentralized so it's obvious that I started with centralized crypto currency exchange. later when I spent some time on the market and during my yesterday I got to know about the decentralized exchange as well and created my account/wallet.

If I talk about centralized exchange then I must say that here we can get a good amount of liquidity of coins as well as a better trading experience since these exchanges offer many options to deposit coins as well as Fiat currency which is not available with decentralized exchanges. as of now, I do not know any decent life exchange offering the deposit option for Fiat currency however most of the centralized exchanges are providing this option depending upon the country's regulation and following certain guidelines. so for the trade point of view, I'll always prefer to do it on a centralized exchange and balance is one of my favorite exchanges as of now for trading purposes. although I use other exchanges as well like Coinbase and Poloniex since I started with finance so I feel more comfortable with finance because it offers plenty of options and services.

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Now I'm going to share some pros and cons about the exchange that is centralized and of course, there is some risk factor as well since this is controlled by a single entity whereas decentralized is like there is no owner and you own the key so you are the owner of your holding.

Pros:

• User-friendly Interface
• Various crypto Pairs for trade like USDT, BNB, BTC, BUSD, etc
• Multi-device accessibility (Phone, tab, and Laptop, etc)
• Support by the exchange in case of problem or account recovery
• Fiat option for Trade

Cons:-

• Risk of hacking and funds loss
• High Commission on tades
• Wallet not in sync sometimes
• Control of funds with Exchange

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So as I mention that I will use a centralized exchange for trading and any funds that will not be used for trade purposes, I will prefer to keep in the de-centralized wallet. In fact, few of the exchanges have started option to stake the holding and earn some returns on it so I believe you still going for a centralized exchange is a better option that provides this kind of services. it's quite nice and a better idea if we can deposit our idle funds and earn some ROI over it rather than keeping it idle for a long time which is not possible with a wallet.

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Conclusion

In my opinion, Binance is the winner and I would prefer to use it for my cryptocurrency Holdings and transaction as well and obviously, it offers a bunch of services and plenty of options to go far which makes the crypto experience even better. I have explained the reasons for using a centralized exchange.

This is the official post made by @gbenga

*Thank you so much @gbenga for putting in so many efforts and bring more value to the steemit platform. this will help us to learn and enhance our knowledge about crypto.

cc:
@steemitblog
@steemcurator01
@steemcurator02

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