Centralized Exchanges : What It Entails #003

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Hello great minds,

It is a wonderful opportunity to come before you all today to discuss on an issue of great importance in the cryptospace.

I believe you are doing perfectly fine and are enjoying your activities in the community.

In our last meeting, we discussed about the functionalities of centralized exchange where we learnt about it's mode of operation.

Today, we shall be learning about the advantages of a centralized exchange in the cryptospace, please follow along.

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ADVANTAGES OF CENTRALIZED EXCHANGE

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There are several advantages of making use of a centralized exchange in the cryptospace and we shall be examining some of them now

• LIQUIDITY:

Liquidity provision is one advantage of a centralized exchange.

Due to it's active trading, centralize exchanges helps to supply liquidity to the cryptomarket.

And as we have discussed earlier, liquidity is explained to be how easy it is for a financial transactions to be validated.

And a market can be said to be liquid when there are enough participants in it.

• USER-FRIENDLY:

Another advantage of a centralized exchange is that it is user friendly.

A centralized exchange is user friendly to both novice and experts, in the sense that it doesn't need a knowledgeable person to teach others how to navigate their way through the platform.

• ADVANCED FEATURES:

Another advantage of a centralized exchange is that is offers advanced features to it's users.

Features such as margin trading, stop-loss orders, derivative trading, which a decentralized exchange doesn't offer.

• FIAT ONRAMPS:

This is another advantage of a centralized exchange when compared to other exchanges.

A centralized exchange allows its users to withdraw and deposit fiat currencies and this is not done by a decentralized exchange.

Thud it helps to ease the process of conversion between cryptocurrency and fiat currencies.

• REGULATORY COMPLIANCE:

Most centralized exchanges comply with local regulations within the system, and this helps to keep their asset secured.

By complying with local regulations, centralized exchanges makes it possible for investors associated with legal issue to build trust in them.

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CONCLUSION

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We have examined the advantages of a centralized exchange today, and we have seen the various contributions it makes to the crypto community.

In our next discussion, we shall learn something more interesting