Steemit Crypto Academy Contest / S6W2- Centralized Cryptocurrency Exchange Platforms and Its Risks.

Hello everyone I Hope you are all ok and enjoy the good life by the grace of Allah Almighty I am here for participate in the amazing engagement challenge which organised by the SteemitCryptoAcademy the name of this contest is Centralized Cryptocurrency Exchange Platforms and Its Risks so lets start this;

It is a true statment user may be surprised to know about the fact that the currencies or tokens that they stored in the cryptocurrencies is not their own beacuse they are not approved by the law of bankruptcy thats why their personalization can not be considerd.Users of the cryptocurrencies and specially the investors should be aware of the fact that the investments that they make are secured or may have some risks in them.

Cryptocurrencies are not fully approved by the legal tenders thats why users may know before investing about the legal allowance and statics.It does not follow the bankruptcy.Liquidation of an asset is an important part to generalize the currency in the market.

We can understand the term bankruptcy in the way that investors owe more amount of assets as compared to the amount they pay back.The users of the cryptocurrencies may lose their acess to the assets that they own if their is the liquidation in the cryptocurrencies in terms of bankruptcy.

These risks can be harmful for the huge investors specially in the centralized blockchains and may defame their assets.it make the sense in the way that that users in the centralized are losing the personalization on the assets.The centralized authourity have fully access to the assets that you invested.

It is already known that the centralized exchange takes or borrow the assets from the user and make profit from it.So it can be concluded that there is a low protection of users assets in the centralized exchange and this is risky and might the surprise to the investors.

Bankruptcy is actually the moment or the fact when no amount of money is available to the debators can not refund the creditors.When the investors store their assets and the financial resources are not able to pay back their deposition.

Simply we can answer to the question in the way that it would really the surprise for the investors that their amount is not their own in the case of bankruptcy.The investors who keep storing the assets in the centralized excahnges and eventually the prices did not go in the way they imagining then all the holdance can be accessed by the centralized system and in the case of bankruptcy all the assets would lose.

So these are some risks that the investors must take look before investing in any kind of assets the event of LUNC and FTX is memorable in which all the assets of the investors was lost due to the moment of bankruptcy.

In the case users store the huge amount of crytpto currencies with the hope that the prices of the assets will rise soon,but eventually low liquidity leads the prices grounded off.So at the end we should take care or research to avoid the surprises in our tradings or earnings.

There are so many resons that I considerd behind the bankrupt of thre FTX platform the first was the low liquidity and we know that the decrease in the liquidity may leads towards the defame of the coins and bankrupt.

Mismanagment and loss of calculation property is another reason that I consider the other cause towards the bankrptucy of the platform.This fact is really important for the mangement of the finance that there should be proper management and calculations to run it and the little ignorances leads to the grounding off the system.

Funds mangment is the major factor that matters for the
Sucess of any financial room and the calculations also plays important role to deal the financial mangment and currencies.

As I already said that the liquidation was the issue when the demands of the funds is low and the supply is high so less demand of the currencey the investor faces the crashes and all the assets were loss in the accident.There were a large of number of withdrawals that were coming but they pay to the few investors due to lack of the currency and this was the situation of bankruptcy.

There is also due to the fact that the exchange overleverged the coustmers.leverging factor also creates issue for the maintainance and stability of any platform.

I find it on the social media and the news circulating in the forms of memes on the twitter about the bankruptucy of the FTX platform in which many people lose their assets.The major factors are those that I have explained above.The leverging issue,mismanagement and the liquidity was low which causes the plaform to ground off.

Some of the investors was getting their assets and the demand was less while supply was low as there was many withdrawals but less amount to pay to the investors.

Consequence of accident Some of the consequenece of the accident are that people lose the trust on the exchange means it becomes difficult for them to trust on the cryptocurrencey excahnges.

It was also the damage to the investors assets the people who invest the large proportion of their property in one exchange or the coins with the fact that prices will rise are hopless and dishurted which was the huge loss.

I am actually in the side of storing and investing the digital coins that would be beneficial to the economy the step is great towards the economy but still there are some doubts that should be covered to be it more better.

Till now although many incidents have been happend and still there are chances or risks in the field for the investors.These incidents includes the bankruptcy of the
LUNC or the FTX.

If I move to my point of view about the worst incident that could be happend to the cryptocurrencey after the accident of FTX.There have been many towntrends have been occured which affects totals price of the bitcoin as it lows the price.

Some investors thinks that the prices move towards more low values and thus as the result the Bitcoins falls the more but there are also some expectations towards the bullish trends.

As it has been seen many times that after the low values there has been many bullish trends in the past so hope so that the coming years will establish the crypto towards the high trends and will lead towards the establishment of the market.

After the incident of the FTX platform it was the way towards the decrease of the market and fall in the price of the BTC also.It was the worst situation considerd beacuse the main loss was the loss of trust by the investors.

As the investors loss the trust and they start selling off their assets and thats why the prices of the crypto in the market decreases.Some ivestors start pretending that this is the crisis of the crypto and after it the market and the digital coins will be grounded off.

Cryptocurrencies are usually seen as the best investments to the users due to its volitility and many security features and in the future it is belived that it will grow more.Although there are so many crisis occurs that lowers the trends and causes the mismangment or create the bad image of the crypto but there are many bright steps of the crypto also.

The crise incident of the market remembered of about the risks regarding to the investments in the crypto due to security and saftey issues.Specially the bankruptcy incidents loss the trust of the investors from the cryptocurrencies.

So according to my opinion it can not be said that cryptocurrencey is outdated although it has some stability issues which can be resloved in the future by the coperation of the government and by some steps towards its betterment.

So the crypto has the bright future and will be more benficial from the other fait currencies such as euro and dollars due to many additional features of security and decentralization.

Binance is considerd as the no 1 trading platform or the exchange there are almost all the currencies present that can be exchanged on the platform or most of the traders and inbestors use this trusted platform for exchanging and storing the assets in the wallets.As we know that the binance has its own wallet.

According to the news about the FTX exchange the binance think towards the plan of acquiring the assets of the platform of FTX.This is considerd as the great step towards the revenue as the binance shows the proof about the showing the transparencey that assure the users of the platform.

It will be the good plan for the exchange of the FTX and in some extent the users will be able to reassure but the future will decide that what will be the worth of the tokens in the future or these tokens may accomundate the same prposals or policies that were crashed.

Binance although has taken the good step as the trustable and the loyal exchange of the platform,it may prove good for the FTT exchange and may lead towards its bright future.

Despite all of the situations that are faced by the cryptocurrencies we can conclude that cryptocurrencies has the bright future but still we need better security to gain the trust of the investors.

Bankruptcy can be occured due to the low liquidity as some incidents of it take the cryptocurrencies towards the crisis.The most worst issue was the FTX exchange accident in which the large no of investors losses their assets and was unable to recover that.This was happend due to many reasons such as mismangement or calculations error.

Instead of that there was the lack of the assets and opposition in the demand and supply.Binance has planned to buy the FTX but the future will decide what is going to be happend.

I invite
@steemdoctor1
@malikusman1
@kouba01
@lavanyalakshman
to participate in this contest.

Thank you