Steemit Crypto Academy Contest / S1W2 – Reviewing Centralized Exchanges By @beckie96830

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Introduction

Centralized Exchanges (CEXs) are transaction platforms for trading different crypto assets which are owned by private and well-known individuals. They are run by a company that validates the financial transactions of both the buyer and seller and through various confirmation messages such as Authorisation codes, e-mails, and memos.

The company keeps a copy of all financial transactions generated and trades carried out by the buyer or seller and most time KYC information on clients in case of fraud or false transactions. The users of this exchange don't exchange crypto assets directly from the exchange, rather, the traders send the crypto assets to the platform to change to fiat currencies or other cryptocurrencies.

Discuss briefly centralized exchanges and its benefits to crypto users.

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Centralized exchanges are also referred to as custodial or temporary wallets which provide a base to buy, sell and trade cryptocurrencies across the globe. Those who trade in cryptocurrencies use this common means to buy and sell the cryptocurrencies they hodl.

Various investors do not entirely trust these crypto exchange platforms because they are easily prone to cyber-attack and fraud which can negatively lead to loss of funds and confidence of investors in them. That being said they offer a wide range of benefits of centralized exchanges which are itemized below;

• Buy crypto with fiat and fiat with crypto

Whether you have crypto or fiat, you are on the safe side once you enter the crypto market. You can buy crypto/fiat to whichever currency or crypto assets. The only thing is to fund your wallet by depositing it directly from your connected bank account or wallet.

• Sell crypto to fiat and fiat to crypto

The same goes with selling crypto to fiat and fiat to crypto once you enter the crypto market. You can sell crypto/fiat to whichever currency or crypto assets you want. The only thing is to provide your connected bank account or wallet address.

• Availability of more liquid assets

Through centralized exchanges, investors and traders can have access to readily available liquid assets in form of crypto or fiat. In the crypto market, you have investors who are willing to sell their crypto for cash and investors who are willing to use their cash to buy crypto assets to hodl.

• Suitable Market Orders

Various market orders exist in these exchanges that suit various traders and investors. They can set limits and stop-loss orders depending on their market and the strategy they want to adopt.

• Reduce stress in managing bogus private keys

There is no need for using your private keys to validate transactions, the exchange takes care of that for both end-users. They provide unique memos and authentication codes for confirmation of the order instead.

What do I look out for when choosing an exchange to trade my crypto assets?

Cex

Before I jumped into the exchange I have been using to date, I was using roqqu. I was still new to the system and had no prior experience but with time and through coaching, I have been able to stick to my present exchange. That being said, when choosing an exchange to trade my assets, I look out for the following characteristics or unique features;

• Security of the Exchange

I have to ensure that the exchange is secure and free from vulnerability. I make my research online and check for the least attacked and how the company took responsibility.

• Liquidity Access

The exchange has to have enough crypto assets or fiat that can suit customers' demands. I look out for those platforms that can offer me any volume of transactions I want to carry out.

• Transactions Fees

These exchanges make their money from any type of transaction made on their platform and they come in form of gas or transaction fees. I look for exchanges that offer relatively low transaction fees while offering the best services.

• History of Existence

As a crypto trader, you don't expect me to trust a newer exchange platform than one that has been in existence for a longer time. I look out for exchanges that have been in existence longer than others and have proved to be reliable throughout their entire history of existence.

• Customer Reviews

I look out for testimonies by other users across various social media handles and the play store where I get the apps.

My favorite centralized exchange and its unique features

Binance

My favorite centralized exchange is Binance and it has been tested and trusted for the past a year plus I've been using it.

Binance is one of the best cryptocurrency exchanges in the world and has the highest volume of crypto transactions traded daily on its platform. It was founded and registered in 2017 on Cayman Island by Changpeng Zhao and Yi He.

Binance CEO

Originally, Binance was created to have a founding structure in China but due to the Chinese government's regulation of cryptocurrency exchange, it had to move its headquarters to Cayman Island.

They have had their shortcomings too. In 2021, a series of investigations were carried out on the Binance platform based on money laundering and tax-related offenses which led to the stopping of all financial services in the United Kingdom, in June of 2021.

They've also had their fair share of good luck which are tabulated below. Among these, they donated $10 in US Dollars to assist in the humanitarian needs of Ukrainians during the crises they were facing.

Month, Year	Accomplishments
September 2017	Binance was founded.
January 2018	Listed as the largest cryptocurrency exchange platform with Mcap of $1.3 billion
March 2018	Branch opening in Malta
April 2018	Signed a Memorandum of Understanding with the Bermuda Government
August 2018	Binance, with the help of other exchanges, raised $32 million to create a stable coin
January 2019	Binance partnered with Simplex to enable the purchase of cryptocurrency with debit and credit cards
September 2019	Binance began offering perpetual futures contracts to its customers
November 2019	Binance acquired Indian bitcoin exchange WazirX
February 2022	Binance staked $200 million in Forbes

Its unique features are;

• It offers relatively low transaction fees for any cryptocurrency pair or withdrawal made on the platform.

• It has strong security of network services as all the transactions are done are safely secured.

• The customer service are efficient and reliable. They respond as soon as possible and return my funds when missing.

• They have readily available liquid assets of any crypto pair which is over hundreds traded on the platform daily.

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

The only thing I would love to be changed on Binance is the KYC on Binance. I remember when I joined newly, the whole platform was looking so complicated.

Screenshot of Security and Verification Process Duly Completed

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I tried severally for literally a whole month before I was able to complete my KYC verification process. It took so long and demanded a valid ID card which I kept uploading and it kept rejecting it.

I hope that Binance would reduce the stress on people who seek to complete their verification process. Due to the delay, I wasn't able to withdraw for a long time even though I wanted to.

Ever since I completed my verification process, I have not needed to do so again. I think it's compensation for the stress I went through earlier.

Conclusion

Numerous crypto exchanges exist that I have not tried. I believe that these exchanges offer the best services according to their clients' taste. I like Binance and I will keep using it till I see reasons not to.