Crypto Academy Contest / S1W2- Reviewing Centralized Exchanges by @kingworldline

in SteemitCryptoAcademy2 years ago (edited)

STEEMIT CHALLENGE SIW2.jpg

Is my pleasure to welcome you on my post, I hope you will get it interesting. In the first season on week two of this contest.

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WHAT IS AN EXCHANGE

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The word exchange actually means giving out something In return of equivalent value to that given out, so therefore this implies that there must be two or more parties involved in the transaction, hence this could be between the seller and the buyer as well or with an intermediary which actually coordinates the two parties involved in the exchange.

Hence in crypto world or ecosystem actually plays a vital role on this aspect which actually involves cryptocurrency transaction, on this aspect of cryptocurrency exchange actually involves trading of different assets, which takes place on exchanges which stands as the intermediary there, hence this exchange allow user to make exchange of there token to another token with the means of exchange which could be as fiate, token or valued asset as well, an exchange is more of market point where buying and selling services takes place which brings the buyer and seller to a point of agreement to negotiate over the value they have to offer each other.

To carry out this trade, it involves the use of credit card, bank transfer and as well of digital means of carrying bout payment on exchanges, the exchange regulates the transaction being carried out, hence the exchanges has deposit point or reserve point known as the wallet where all the value asset are kept reserved for further uses.

The exchange has the digital wallet where all this tokens are kept, meanwhile the digital wallet are only maint to store assets while exchanges are made for the trade itself which involves the conversion of cryptocurrencies to other kinds of token or Fiat as well.

Hence they are two kinds of Exchange which are as follows;

•The centralised Exchange and
•The Decentralized Exchange

Centralised Exchange
As for this Centralised Exchange is more of an intermediary or third party which coordinates and regulates the cryptocurrency transaction carried out on a platform for example; Binance Exchange, Kucoin Exchange, Huobi Exchange and so many others.

Decentralized Exchange
These are known as those platforms without an intermediary or middleman which is the third party which facilitate transaction activities, hence this involves the direct negotiation between the buyers and the sellers of which examples of this are SoloDex, Stellers and others.

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Discuss briefly Centralized exchanges and its Benefits to crypto users.

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The Centralised exchanges are those institutions that coordinate the trading activities of cryptocurrency on a large scale or quantity, hence they merge one on one to trade while the exchange platform serves as the intermediary body to settle the two sides on their requests while trading.

As an exchange it has a deposit pool for each account known as the wallet where the crypto valued assets are reserved for utilization, hence these valued assets are set aside in the wallet and are secured by the exchange with an end to end encrypted keys for transferring and others.

With the encrypted keys keeping the asset secure over asset loss which could come as a result of involuntary act, which involves stealing of some one's assets, the encrypted keys are poise to block any kind of improper manipulation of some one's assets.

The Centralised exchange has a high volume of liquidity which enables the buying and selling of asset to be fast and as well easier to the both side, also the features the centralised Exchange has is more easier to operate on, the also support the wellbeing of different kinds of trade which involves the following.

•The margin trade
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Binance

•Spot trade
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Binance

•Futures trade
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Binance

Hence to be make use of centralised Exchange involves the verification process on customer (KYC) which actually involves the use of identification card or slip for proper identification as human in order to reduce and control the risk behind bots and fraud, hence the exchanges are highly regulated and as well coordinated in the case of their services.

In the other way, some other exchange accept the peer to peer (P2P) mean of trading, of which the exchange are set to be fully involve which regulate the release of cryptocurrency after the payment is confirmed by the opposition

Hence the following below are the benefits that a trader can obtain while using the centralised Exchange which are as follows.

Benefit Of Centralised Exchange

•The centralised Exchanges are highly secured and they are security conscious over security, which demand verification processes to avoid all kinds of fraud or any kind of manipulation which help to reduce the rate insecurities which give the trader fate over an exchange.

•The centralised Exchange are so easy to access and to explore of which the graphic interface presentation are well explanatory to the knowledge of all, which makes it easy to explore, hence some goes long way to illustrate how to manage the various function with the help of brief video and written words as it is in Binance exchange and others.

•The centralised exchange has a sufficient volume of liquidity which is attributed by the buyers and the sellers which came as a result of daily trade engagement, hence this fastened transaction.

•The centralised exchange accommodates different means of payment which involves the use of cards, bank transfer and others.

•The centralised exchange allows the inter-change of fiate with that of crypto which is carried out through the P2P method of transaction.

• The centralised exchange has various features such as spot, margin and as well future means of trade and some many others where income is generated and through means of exchange.

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What do you look out for when choosing an exchange to trade your crypto assest?

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• Regarding the above question, after recommendations and current status of the platform, How long have they last, the extent of liquidity they have and their rating on some high profile platform, take a look at the below screenshot.

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Playstore

•Am also after the graphical interface presentation, to know whether it is convenient for me to explore and make use of, hence a friendly interface makes life easier for the user to navigate all around the platform pages.

•Also I consider the rate of response and activeness of the customer care service to the their customer over the laid down matter or issues.

• Also I am after the look out to know whether they have the features which I trade on like Future, spot trade and P2P means of exchange.

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Review your favorite centralized exchange and explain its unique features

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As regards to this my most favorite Exchange is Binance exchange, the exposure and experience I have gotten from that exchange is quite good, hence they are currently the largest exchange as it stands now around the world, they has unique and special and benefiting feature, alongside with the high liquidity they have which make transaction so way and fast and easy, hence this platform has different feature on on where to place take, trade, and others which makes it so flexible, hence this exchange is highly recommended to be used.

The Unique Features are;

Binance Staking (Earn)

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Binance

On Binance as you can see on the above Screenshot are the various means of placing stake which involves token, in order of yielding dividend depending on the interest.

•Auto invest
•Liquidity farming
•Savings
•Staking
•Pool
•Eth 2.0
•Duo investment
•BNB vault
•Launch pad
•Polkadot auction

On Staking

Click on ea EARN and proceed.
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Proceed by clicking on stake.
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Then select token, amount to stake and it's duration you want it to last, behind it is the percentage yield for the duration choose. Then click STAKE.
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Binance

Click on confirm to agree on the terms and conditions applied.
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Binance

Binance peer-to-peer (P2P)
On this, there is mutual negotiation between the seller and the buyers over the exchange of values.
Hence, exchanging through P2P, the price is accommodating and with no charge, also selling in small quantities is allowed in Binance express where the little token can purchase a stable coin for you, vise versa.
Hence this means that this exchange is fast secured and highly reliable.

P2P Express
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Binance

Binance Wallets
On Binance there are different inbuilt wallet attached to this exchange which are used in storing tokens, of which they are over 20 different cryptocurrency wallet found on Binance Exchange platform.
Here deposit and withdrawal are fixed for the easy transfer and receiving different kinds of tokens for both stable and unstable tokens.
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Is there anything about your favorite exchange you will like to be changed? Discuss.

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Yes… There is one amendment which is required to be taken into consideration, for example if you want to make withdrawal on USDT you will require a minimum of 10 USDT which is equivalent to #5600 in my local currency, I suggest it should be reduced and make it affordable for easy withdrawal.

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Binance

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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?

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Binance Shortcomings On Centralised Exchange

•The centralised exchange is prone to be hacked, so therefore this can endanger people's investment, assets and as well their information submitted on the platform which can cause insecurity over some one's privacy, thereby causing more harm than good to that investor or that trader.

•The Centralised exchanges are regulated and controlled by different institutes like government institutes which tend to have control over it which can cause ban when they are not in compliance with what the government institute is saying, which tends to affect well being of the exchange since an external body is having control over the exchange.

•Centralised exchange actually has the full control of all wallet private keys which keep people's out from full ownership of their funds, which tends to affect the free access of the their various founds, hence this can be risky to some exchange which are not well recognized which do not has the necessary build up information need, which tend to move away with people's found, which is very risky.
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How do you think users funds can be protected since we don't have access to our wallet private keys?

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On this aspect, is well known to every cryptocurrency guru that the main reason of creating cryptocurrency is to set people free from the centralised financial institute which is the governmental bank sectors, hence the private key used in Exchange are well encrypted in such a way that information behind any transaction is not exposed until it gets to the right hand, who encrypted the information sent. Hence any attempt to bridge this can cause stealing of funds, valued assets or information which can render someone insecured to that centralised exchange, hence is highly recommended to save on decentralized exchanges.

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Conclusion

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In conclusion whether centralised or decentralized exchanges all play a vital role on the cryptocurrency exchange management of people's founds, asset and as well their informations, hence is highly recommended to invest and trade on a well recommended, recognize exchanges to avoid decryption of information, and also is recommended to make the right choice of exchange that suit your interest based on their services they offer.
Once again, I am so happy for this crypto acacademy, I really enjoy the engagement plan.

LET'S STEEM ON!
Cc: @reminiscence01
Am: @kingworldline

#cryptoacademy-s1w2 #club5050 #steemexclusive #nigeria #fintech

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Yes indeed centralized exchanges are a great development when it comes to cryptocurrency trading and transactions. However, just like you pointed out, there is the disadvantage that your wallet private keys are kept in their custody. I wish this could be changed.

 2 years ago (edited)

That one of the issue they actually have because, you can't get full access to that of your asset, it can be dangerous when you trading with unrecognized exchange, I hope it change, thanks for your review.

customer care service to the their customer

You are very correct to check this aspect when looking at picking a centralized exchange. adding to this is the waiting time, how long you have to wait for a response. Users feel very discouraging when they are unable to reach the customer service or receive a reaction after sending a query.

for example if you want to make withdrawal on USDT you will require a minimum of 10 USDT

But I have a worry, I notice I could only trade more than $10 on this platform. Yeah, I try I t see where I can understand why they implemented that on the platform. Thanks this has actually put me at ease, that it was a general feature on the platform.

 2 years ago 

This two point some issue the low scale traders encounter in regards to the 10 USDT withdrawal.

Thanks for this content, I have not use this Binance app before, I have been trying to understand it fully before use, but now this content has helped me a lot, I will go ahead and download it.

 2 years ago 

Is really interesting, Binance remain the best for trading, staking and more

Thanks bro I will try it out

 2 years ago 

Good 👍👍

 2 years ago 

Wow I enjoyed reading your post and more especially how you expantiated the Binance exchange to be precise. Nice work

 2 years ago 

Thank you so much for your recommendations

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 2 years ago 

Well said. Binance is always the best and first pick of many crypto dealers although it's not my first. I love you description about the services of Binance. Nice post bro

 2 years ago 

That's is it bro all individuals, all has their various choice, my could not be yours, we all differs. thanks for you comment I appreciate

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