Introduction

Greetings, fellow steemians!
I'm excited to be a part of this steemit engagement challenge and I'll be Reviewing Centralized Exchanges below., which I'll address below. So let's begin.

• Discuss briefly Centralized exchanges and its Benefits to crypto users.
  

The most important platform for most global digital currency investors to conduct transactions is a regulated cryptocurrency exchange. These platforms assist users in purchasing and sales of cryptocurrencies, making it easier for investors to acquire, sell, or hold bitcoin for future resale when the price rises. Many investors consider the controlled exchange to be deceptive because digital currencies are typically advertised as decentralized.

Exchanges offer cryptocurrency storage in a variety of wallets, as well as the ability to purchase virtual currency using bank transfer, credit card, debit card, peer-to-peer, and PayPal with users on the platform, as well as a way to make money above the virtual marketplace. The two types of exchange are centralized and decentralized, therefore let's speak about centralized exchanges once we talk about cryptocurrencies.

A centralized Exchange is one that is managed and owned by a single person or company. The affairs or activity of the users are overseen by a central authority. Users in centralized exchanges do not have full access to or control over their own accounts since the platform's proprietors have limited them, making it insecure.

Centralized exchanges makes use of middlemen to facilitate migrations . In a centralized exchange, the company has complete control over all transactions that occur on the platform. The users, do not have access to their account's private key, which means we invest a high level of trust in the exchange administrator.

A centralized exchange possesses almost all of the user's information.The following are examples of centralized exchange:

• Kraken,
• Roqqu,
• Binance Exchange, ETC.

Benefit of centralized exchanges

Below are the benefit of Centralize Exchange:

• High Transaction Speed: Centralized Exchange has a very high transacting rate that makes trading faster.

• Multiple Assets: Centralized Exchange provides users with option of different assets which they can trade from. it gives you option of trading from multiple number of Cryptocurrencies .

• In Centralize Exchange users can exchange crypto to cash for withdrawals easily .This gives users the opportunity to buy Cryptos easily and also sell at their own convenient time

• Liquidity: The ability of an asset to be sold without a change in price and with minimal loss of value is known as its liquidity.

• High Recovery Rate: In Centralize Exchange users can easily recover their account using email and phone when they lost their key.

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

As a trade, below are the things I look out before trading with an exchange because their need for proper research to avoid liquidity or loss of funds:

• Trading or Transaction Fee: Exchanges charges some amount of money for each transaction done on the platform known as Transaction fee. So whenever am trading with any exchange I look out for the transaction fee because some exchanges charger than the others.

• Accessibility of Some Crypto pairs: Before I trade with some exchanges look out for some crypto pairs, For Instance some exchange don't have STEEM/USDT pairs which will make it more difficult for to trade those currency on the platform.

• Transaction Rate: Before I trade with some exchanges I need to know their transaction speed, daily limit and how verification is being done.

Review your favorite centralized exchange and explain its unique features

Source

My favorite exchange is binance, its the largest cryptocurrency exchange , established in 2017 by Changpeng Zhao. It is secure and safe. Binance is a programmed exchange where users can trade cryptocurrencies, including the most popular ones and one the newly incorporated was STEEM/USDTpairs. BNB, BTC, NEO, LTC, and ETH were the only cryptocurrencies available on Binance when it first launched. The exchange now supports more than 120 different coins.

Binance provides cryptocurrency wallets for traders to save electronic cash, as well as blockchain-based tokens and below are some of the distinctive features of binance:

Features of Binance

• One unique feature of Binance I like so much is that you can send and receive Cryptocurrencies through Email or phone Number.

• p2p feature which gives you the opportunity to buy or sell cryptocurrencies .

• Binance gives you the opportunity to switch between Lite and pro depending on your trading level or knowledge.

• Conversion of Cryptocurrencies, you can convert assets on binance platform.

• We also have other features like Spot Trading, Future Trading, Referral program and Staking.

Is there anything about your favorite exchange you will like to be changed? Discuss.

• I would love to incorporate in-built digital wallet to binance just like trust wallet.
• I would love to decrease the rate of technical issues. Most you see some assets being suspended for week thereby making it difficult for investor to withdrew their assets.
• I will love to change the minimum trading amount below $10 so to enable more will lesser funds to trade

Shortcomings on centralized system

• Due to the fact that it uses a central server and all of the users' keys are saved on that single server, it is readily hacked. It's just too easy for a fraudster to attack the server and collect all of the users' keys at the same time.

• The entire system is controlled by a single server, a failure of the central server will have an impact on the platform as a whole. When the central goes down, the entire system goes down with it, affecting the entire platform.

• Centralized Exchange does not provide users complete control over their keys and assets.

• The centralized exchange system's central authority can influence the trading volume or price at any time without being questioned.

how do you think user funds can be protected since we don’t have access to our wallet private keys?

Due to the fact that traders do not have access to their wallet private key, I will recommend all centralized exchanges to adopt Google Authenticator as a private key for fund and crypto withdrawals before transactions can be completed. This, I believe, will aid in the improvement of security in centralized cryptocurrency exchanges.

Conclusion

In this post I was able to analyze the centralize exchange, A centralized Exchange is one that is managed and owned by a single person or company. The affairs or activity of the users are overseen by a central authority.

Am Thankful @stemmitblog for this wonderful topic.

Thanks for Reading