Steemit CryptoAcademy Contest/S1W2 -Reviewing Centralized Exchanges by @ruthjoe

in SteemitCryptoAcademy2 years ago

Hello my Steem lover

Its so good to be a part of this challenge this week. I thank the steemit team for the idea, indeed its making comments very interactive and fun too.

This weeks theme is tittled Reviewing centralized exchange

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Introduction

With the emergency of cryptocurrencies, the life of many has been transformed for good. Since there is something called cryptocurrency, the need to house and trade these cryptocurrencies aroused. And then we have the crypto exchanges to help us out with this issue.

what then is a crypto exchange?

Since crypto currencies are not seen with the physical eyes, they only exist digitally, then what every will be used to house it or trade it must exist digitally too.

Crypto exchange are seen as an online platform,which allows forms of cryptocurrency trading such as selling, buying and even short time storage of cryptocurrencies. An exchange just like the word suggest is a place where you give to receive another thing.

In an exchange, cryptocurrencies can be traded either to get another cryptocurrency or to get fiat.

Some one who is new may be wondering so why would someone go as far as having such platform called an exchange,what do they gain? Well, they make their profits through the fees they charge when transactions are carried out on the platform.

Types of exchanges

There are two types of exchange and they are;

  • Centralized exchanges : examples include Binance, poloniex, kraken, Bitstamp, kucoin etc

  • Decentralizes exchanges: examples are Blocknet, Airswap, Barterdex, etc.

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Discuss Briefly Centralized exchange and its benefits to crypto users

Now that we have a knowledge of what an exchange is it is time to tell you what a centralized exchange.

A centralized exchange are exchanges that are controlled by a central body hence the name centralized.

A centralized exchange is an online third party platform for cryptocurrency transactions such as buying and selling of cryptocurrencies. The centralised body incharge of this platform are incharge of the users private key. What is left with the user are password.

In a centralized exchange, users do not have total control of their funds because they do not have access to their private keys. Therefore centralised exchange does the job of a middle man so that transaction can be done between the seller and the buyer.

Benefits of centralized exchange to crypto users

  • Security of transaction carried out: Centralized exchange offers user security when a transaction is carried out on the platform. These ensures that transactions are caried out successfully.

  • Easy to use : one benefit centralized exchange offers it user is its easy to use nature which makes the platform friendly especially to those using it for the first time.

  • Exposes users to the Access to alot of Crypto currencies: This benefit can not be overemphasis. Without the exchanges there are crypto asset that users may not know about or trade. But with the exchange users are exposed to varieties of cryptocurrencies to choose from.

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What do you look for when choosing an Exchange?

There are several things i look out for when choosing an exchange and below are a few of them;

  • Security of the Exchange : i dont just see an exchange and decide to use it when i have not proven how secured it is. I have lost some money in the past so i would not make mistakes anymore by ignoring the security of the platform. I would check if the exchange has the two factor verification and every other necessary things i need to know.

  • Transaction Fee : when choosing an exchange the next thing i look out for is their transaction fee. I check how much charge they take because i want to make profit too. Some platform fees can just be so much so am careful to findout the fees for transaction.

  • Variety of cryptoCurrencies available on the exchange : i love varieties therefore, i check for the number of crypto currency available for my use. There are some exchange that may not have the crypto i want to trade so am careful with my selection.

  • I check if it is easy to use or complicated: i will always check out the exchange i want to use if it is easy to use or complex. I do not like complex exchanges so i go for the one that is easy to use.

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Review your Favourite Centralized Exchange and Explain its uniqueness

My favourite centralized exchange is the Poloniex exchange.

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Source

Poloniex is a centralised crypto currency exchange having history as far back as 2013. Poloniex was established by Tristan D'Agosta. Poloniex exchange is allows the trading of crypto currencies on the platform having over 350 crypto assets available on it for the users.

Poloniex is designed to have a very fine user friendly screen aside that it is easy to use by the users especially to new users. Poloniex exchange gives magin trading and leverage ranging 2.5x.

On poloniex exchange, after opening an account, deposits are only made using cryptocurrency. Another thing about poloniex is that its verification process is not so complex and that one reason i like it. It has 3 levels of verifications. The 3 level of verification are for traders who does large trade. The 2 level of verification involves the registering of the users picture, phone number and probably contact adress of user. While the first level verification involves the registering of the users name, email address and the country of residence.

Poloniex is one of the major exchanges we have today. Poloniex has a wallet in it too

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friendly interface of poloniex

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Uniqueness features of poloniex Exchange

  • Ploniex Exchange provide users with an option to lend asset on the platform

  • Poloniex Exchange keeps the deposit made on the platform offline for safety purpose.

  • Poloniex Exchange has a low transaction fee

  • Easy to use: Poloniex exchange is so easy to use.

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Is there anything about your favourite Exchange that you would like to change? Discuss

Poloniex is my favourite Crypto currency exchange but two things i would like to be change

  • The fact that fiat currency can not be deposited only cryptocurrency. I would really like an adjustment to be made in this area. Some times a user may not have the crypto asset needed and has just fiat. I think if this is looked into, it will make the platform better.

  • Costomer care service: i have heard stories that poloniex costomer service has not really been so well, i mean there is no prompt response to user when the user has an issue. I think it should be looked into or changed.

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What ShortComing do you see on a centralized Exchange and do you think users fund can be protected,since we do not have access to our wallet private keys?

  • Centralized exchanges have a shortcoming of been prone to hacking and thieft because users do not have access to their private keys. History has proven that a centralized exchange can be hacked and there are some that has been hacked in the past.

  • large transaction fees is one of the short coming for some centralized exchange especially when a large trade takes place.

  • For some centralized exchange verification process takes a very long time.

  • Some centralized exchange are not costomer care service friendly meaning they are not always there to assist the users when account issues arise.

I think users funds can be protected in centralized exchange when the security of the centralized platform is tightened to avoid hacking and theft. Secondly i would suggest that the users be given access to have their private keys, this would make the users trust the platform more.

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Conclusion

Centralised exchange has really been helpful to the cryto space and its importance or benefits can not be over emphasied. Centralised exchanges has given us exposure to a whole lots of cryto currencies and by the way, i wonder how crypto trading can be done without our centralized exchange or even exchanges in general, so am glad we have the invention on exchanges especially the centralized.

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Well done! You deserved the up vote!
Job great done 👏🏻👏🏻

 2 years ago 

Thank you dear friend @patjewell

I love your entry @ruthjoe. Thanks for taking us round on crptocurrency exchanges and its types being centralized and decentralized. It was made very understandable from your breakdown.

Although my favourite centralized exchange is Binance, i have come to the awareness of the features of poloniex, having its own built wallet and user friendly features.

Thanks for the insight dear.

 2 years ago 

Dear @sikan-eyen you are welcome am glad you learnt.

I have been trying to understand what crypto currency really is but your definition has brought full satisfaction. I don't need any further explanation of crypto currency kudos to your article, thanks @ruthjoe

 2 years ago 

Wow @davidalfred am so glad you leant from my entry. I look forward to see your own entry.

Thank you

 2 years ago 

This is a beautiful piece you have put up about Poloniex. You made me wanna start using it.

Centralized exchanges have really made the trading and storing of cryptocurrencies easier. I have not used Poloniex but I have heard so many steemians use it. My favorites are Binance and Huobi.

 2 years ago 

Wow!
Yes poloniex is nice you can try it out. I will like to know your experience when you do

Thank you so much foe coming over.

 2 years ago 

Hello @ruthjoe,

You have made a nice entry for this contest.I love the way you explained centralized exchanges and it's benefits which include easy trading and storage of digital assets.My only worry is that the company has the active key which makes it a third party interference.

Poloniex is a decent exchange.You have tried to explore its features.With this article,I am moved to open an account with poloniex exchange.

Respect!!

 2 years ago 

Yes oo the fact that the private keys are not with users makes me worry sometimes but not withstanding life is risky generally

Thank you for visit sir

 2 years ago 

Poloniex being one of the most interesting centralized exchanges and having different features from other exchanges, you managed to explain it very well.

 2 years ago 

Thank you @chairulrizalx

 2 years ago 

👍👍👍

 2 years ago 

I have heard about the polyneix exchange before but don’t have any knowledge about it. But I think with regards to what you stated in the last question, depositing fiat into the exchange. I think it is the same to all the exchange platforms I know, you can rather use your fiat to buy a crypto asset and hold in your wallet, that is if only you want to deposit the fiat. Apart from that I don’t think you can deposit fiat directly to your exchange account.

Anyway, thanks for sharing and you have explained into details about the polyneix exchange. Good luck.

 2 years ago 

Thank you dear @suglo100. Am glad you came by

 2 years ago 

You did a very good job explaining this subject. You're about the first person I've seen talking about poloniex and you've really demonstrated how much you know about this subject. Your review is really tempting me to try out that poloniex exchange. Welldone.

 2 years ago 

Wow really? Awww
Thank you my dear friend

I wait your entry.

 2 years ago 

I must personally thank you @ruthjoe for this detailed explanation on centralized exchange.

I believe that you have spent some quality time in making such research. Thank you again

 2 years ago 

Yes i did put in some time for my research but i also wrote my experience too.

I really appreciate your comment and i wait for your entry.

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