Steemit Crypto Academy Contest / S1W2 – Reviewing Centralized Exchanges By @suglo100

Good day everyone.

I’m glad to take part in this week’s engagement contest. I couldn’t join it last week because of some personal issues but thanks be to God as I’m ok now and will like to submit my entry for the second week edition of the steemit engagement contest.

This week’s contest is all about your desired centralized exchange. Indeed it is a good contest which will enlighten us more on some of the centralized exchange platforms. Although I have a little knowledge about and have been using one of it but this contest will make me learn more about exchange platforms in general.

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Introduction

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Now to start with the main content of this contest, i think it will be very beneficial and important to understand what an exchange platform is before going further into the main thing.

Exchange platforms are platforms or sites where both investors and traders are allowed to trade in crypto assets. Exchange platforms enhances the trading of crypto assets for other assets. Due to this, they serve as an intermediary between traders and generate income through transaction charges or fees and commissions.

However, exchange platforms are business platforms that facilitates the swapping of crypto assets from a coin to another with a little fee or charges. Exchange platforms enables its users to create a profile and again allow them to access their account at anytime. Some of the exchange platforms are, Binance, Coinbase, Polyneix and many others.

These exchange platforms I’m talking about are categorized into two different types, we have the centralized and decentralized exchange platforms. And with regards to this contest I will be discussing what a centralized exchange is and my favorite centralized exchange.

Discuss briefly Centralized exchanges and its Benefits to crypto users

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Centralized exchange are exchange platforms where buying and selling crypto assets are done across the world. They serve as an intermediary between traders and are controlled or managed by authorities. Centralized exchanges are seen to more reliable. Investors use this platform to carry out their daily trades on the crypto assets they hold.

Most of the cryptocurrency transactions go through centralized exchange nowadays. Some examples of centralized exchanges are; Coinbase, Kraken, Gemini, Binance and many others. Among these centralized exchanges, the Binance exchange platform is the most used centralized exchange platform which is more common and known to many people around the world.

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These centralized exchanges comes with a lot of benefits to its clients and below are some of the benefits they give to its users;

• Better Market Orders: On the centralized exchange platforms, there exist different market orders (limit-order and stop-loss order) which investors go by to make their trading easy and simple.

• Purchasing Crypto Assets With Fiat And Fiat With Crypto: On a centralized exchange platform you are free to trade cryptocurrencies with fiat or fiat to cryptocurrency. What you just have to do is to make a deposit from your wallet or account.

• Selling Cryptocurrency To Fiat And Fiat To Cryptocurrency: Likewise in the above mentioned point. It goes same with selling crypto to fiat and fiat to crypto. Here you also need a to give out your account number or wallet address through which payment will be made.

• Presence Of Adequate Liquid Assets: In the centralized exchange platform you are entitled to get access liquid assets available in the market. These liquid assets may be in a form of crypto or fiat depending on your trade. Some investors in the crypto market are willing to sell their assets for fiat while others also want to purchase assets with their fiat.

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

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I think this question in particular has to do with individual differences. The reason why I said this is because each and everyone of us here don’t use the same exchange platforms to carry out our transactions and trades. And we all have what we look for when making a decision on which exchange platform to use. For me, I consider a whole lot of things before choosing an exchange platform to execute my trades and transactions there and some of these things are;

• How Clients Recommend The Platform: Most at times customer reviews on a particular app of platform is very essential to consider before dealing with that app. For me to start using an exchange platform I will check how clients recommend or say about the app before choosing it. You will get to understand whether it is a good platform or not. You will also find out more concerning the platform including how it works, its faults etc.

• The Platform Whereabouts: Another important thing I look up to when choosing an exchange platform is making a thorough research on how the platform came into existence. Don’t expect me to go in for a newly launch exchange platform than those have been in the system for a while. Exchange platforms that have been in existence for a very long time are seen to be more reliable base on their historic experience.

• How Secure The Exchange Is: I think this is what everybody consider before or look up to before involving themselves into an exchange platform. I have to be very sure that the exchange is secure and free from hacks.

• Charges Per Transaction: Almost all the exchange platforms make their money from the fees or charges they allocate to every transaction that is executed on the platform. Exchanges that give lower fees on transactions are what I consider before picking an exchange.

My favorite centralized exchange and its unique features

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There are so many centralized exchanges in the system and out of it all Binance exchange is my favorite. I started using the Binance in 2021 that was last year. I have done several transactions on it and have never experienced any misfortune there.

Binance exchange platform is currently one of the best cryptocurrency exchanges in the world. It is the leading cryptocurrency exchange and was found in 2017. It has the highest crypto transactions volume traded everyday. The word Binance is a combination of “Bitcoin” and “Finance”. It has a higher standard of safety and security and has a native coin known as BNB.

Binance gives peer to peer trading in more than 500 crypto assets and virtual tokens. Some o these crypto assets that you can find on the Binance exchange include Bitcoin, Ethereum, Dogecoin, Binance coin and so many others. During the 2018 Binance moved it’s organization headquarters to Malta due to China’s strict rules on crypto exchange businesses.

Just like any other exchange, Binance give services on several aspects of the market including trading, listing, fundraising, withdrawal of crypto assets etc. Organizations that have the intention of introducing their own token can make good use of Binance in raising funds for the start up capital through initial coin offering. There are over million of people using the Binance exchange in trading various cryptocurrencies.

To get started with Binance, you need to create an account for yourself. After you are successfully verified, your account will be ready an you free to start trading and making investments with the platform. There are three types of trading on the platform, limit order, market order and stop-limit order. Depositing funds or cryptocurrency is free. There is no charge or fees allocated to that. However, making withdrawal do go with a fee which normally depends on the crypto asset and the quantity.

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The Binance exchange goes with some special features that makes it unique from other exchanges. Some of these features include;

• Low transaction fees: For any cryptocurrency trade or withdrawal made on the platform usually goes with a small amount of charges.

• Strong security: Every transaction made on Binance is secured and assets are highly protected from hacks.

• Efficient customer care: They provide a very good customer service which makes it reliable. They quickly respond to complaints.

• Adequate liquid assets: There is availability of any crypto pair which several number of people trade on the platform everyday.

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

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Actually I don’t there is much to change about the Binance platform. Although, as I stated earlier on during the question that was demanding for the things you consider before choosing an exchange, it is very necessary to make research about the exchange and also get some basic tutorials on how it works.

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_{Screenshot From Binance}

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Binance exchange seem complicated when I newly joined. But because of the research I made about, I was able to adopt very fast and got started with my trades and transactions. But one thing I think should be given attention to is the Know Your Customer (KYC) verification.

It took me three good days before I was able to get verified. I tried uploading my identification card (ID) but it was always failing until the third day that it accepted it and I got verified.

So I think if they work on that aspect of the platform it will make things very easy for their customers and will also enhance fast and secure registration.

Exchange platforms are very important so far as cryptocurrency is concerned. There are different types of exchange platforms which comes with their unique features in a special way but I have picked the Binance exchange among all the exchange platforms as my favorite. It is user friendly and offer low transaction fees.

Thank You All!!