Contest]: My Experience on Cryptocurrency
This is because after getting to know what cryptocurrency was, i have happen to have an interesting adventure with it. Talking about trading on the various crypto exchanges and blogging on site which are erected on blockchain.
This cryptocurrencies are being protected and secured by a cryptography, which makes it impossible to tamper with these digital assets or tokens. These cryptocurrencies are decentralized due to the fact that they work on the blockchain technology which is a decentralized type of technology.
Actually my first experience with cryptocurrencies was my first year in the university. I was introduced to cryptocurrency by one of my friend. As at then, i didn’t actually have any knowledge about cryptocurrency or trading cryptocurrencies. But that my friend was having a little knowledge about them.
So what he really know as at then was how to buy and sell cryptocurrencies. That’s trading them on one of the exchanges. Before he made me trade or introduced me on how to buy and sell cryptocurrencies. He first of all took his time to explain to me how cryptocurrencies work and the right time to go or venture into them.
Luckily for me, the crypto market as at then was in a bullish state even though the trend of the market does at times falls. So actually gathered some money. Actually they were money i was supposed to use for food here in school. I then used them to buy some little coin. The market as at then went up and came down, after which it stayed down for a while. This was actually my first experience with cryptocurrencies.
What i actually discovered after the trading of cryptocurrencies on the various exchange was a decentralized website that allows one to blog or create contents and get rewarded for it in cryptocurrency. This was actually the next thing i found out about cryptocurrencies.
The very first decentralized website was the steemit website. I then decided to be a participant or user of the website in order to accumulate some cryptocurrencies or tokens for my self. After the decentralized website, i then was been exposed to the crypto world through the website. The website actually talks more about cryptocurrencies so i was lucky enough to learn a lot about what cryptocurrency was.
I got to know that there are games one can play online and get rewarded in cryptocurrencies for it. Which is one of the many things i have learned from the website. Indeed, the steemit website is what exposed me more to the crypto world.
There basically two types of these exchanges and they are the Centralized and Decentralized exchanges.
Centralized exchanges(CEX) actually works as an intermediary between the buyer and the seller on the exchange, therefore the CEX is what makes the transactions between the buyer and the seller possible there by earning money through the transactions fees and commissions of the various trades performed on the exchange. Some of these major CEXs are Binance, Coinbase, Kucoin and polenix.
The decentralized exchanges(DEX) unlike the centralized exchanges allows peer to peer digital transactions directly from the traders wallet without the need for any intermediary to perform the transactions. With this type of exchanges, you perform the trade directly from your wallet either from you the buyer to the seller or vice versa.
The decentralized exchanges rely on smart-contracts which are self executing codes that designed on the blockchain which makes transactions private and secure on the DEX. Since there is no intermediary, but rather a smart-contracts no or less commission or transactions fee is charged from your trades and some examples of these exchanges are the PancakeSwap, kyber and uniswap.
I actually have chosen to use the Binance centralized exchange as my trading exchange. This is solely because I find it to be less complicated and simple as compared to other exchanges. The Binance exchange is one of the most secured and user friendly exchange in the crypto world as at now. This has rendered it have so many users on the platform and has also gain more recognition as compared to the other exchanges.
Below are the advantages and disadvantages of the Binance centralized exchanges.
| Advantages | Disadvantages |
|---|---|
| One key advantage of the Binance centralized exchange is that, it offers a strong and reliable type of security when it comes to transactions on the platform just like any other centralized exchange. This type of security is being developed by the Binance exchange to keep transactions safe. | Even though the Binance exchanges do offer strong security when it comes to transactions. There is always a risk of hack in their case. This is because centralized exchanges happens to have a lot of assets in their care there by making them targets for hackers and scammers. |
| Binance exchange is user friendly in the sense that. It offers users with application version and a website platform of the exchange therefore by making it easier and simpler for users to operate with it. Most especially the app versions of the exchanges is made much simpler with all the necessary features and tools available at a users dispose to be able operate them without finding any difficulties. | The Binance exchanges is some how costly as compared to Decentralized exchanges. This is because the centralized exchange have an intermediary which makes transactions or trading possible. In return to that, fees are being charged on almost every trading that carries out on the platform. |
| The Binance exchanges allows a user to borrow some funds from the exchange to carry out their trades and pay it back after making their profits. which actually known as margin trading. | One disadvantage of the Binance exchange is that they hold on to your private key. Which is the key to your assets, so in case of a theft or scam one is likely to loose all their assets. |
Determination of Club Status refers to the https://steemworld.org/transfer-search Web-based Application
Thank you for participating in the contest that we held in this community
Good luck for you