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So here I believe we all have a little idea about centralized exchange because we usually run transactions in such exchanges we have two types of exchange which is the decentralized exchange and centralized exchange. But for this task, our main focus is the centralized center exchange. Anytime we say centralized exchange it is usually term as a transaction platform which is purposely for trading numerous cryptocurrency asset, this type of exchange they are usually managed or owned by a personal or popular person.
The centralized exchange has been built in a way that all transaction activities such as buying and selling of cryptocurrencies are governed by a company which is mainly for assessing all monetary transactions activities. Usually, the centralized exchange mostly differs from the decentralized exchange, Anytime users run transactions on the centralized exchange, The company managing that exchange always stores additional document of every monetary transaction activity which was developed and all trades which was successfully performed by the buyer and sellers. Also with the CEX, it has this special future called KYC which provides the real information of every user on the exchange, Also which the centralized it has different similarities wh n compared to the decentralized exchange, Users which utilize the CEX are unable to swap their cryptocurrency assets instantly on the centralized, They must successfully transfer their cryptocurrency asset to the platform in other to be able to swap to either fiat or other cryptocurrency, This is all the centralized exchange. In other words, we define the Centralized exchange as a type of custodial wallet which gives or provides trades futures such as buying, selling, and trading of cryptocurrency assets by users beyond boundaries.
With the centralized exchange the fact that it is managed and controlled by some individuals or companies it is always having trust issues by users or investors who would like to invest because with the centralized exchange it can simply be attached by hackers or fraudsters which can cause a huge loss of capitals by the exchange or investors, And this could be a problem.
The centralized exchange is having numerous benefits to its users, below I will be listing some benefits of the CEX to its users.
BUY AND SELL AT YOUR OWN PRICE.
The centralized exchange has been built in a way that all users are having the chance to be buying and selling any cryptocurrency asset at their option price with the help of numerous orders, And these types of orders include Stop-limit, OCO (one-cancel-the-other), Market price, limit price, etc, All these order futures are accessible by users or investors.
THE CENTRALIZED EXCHANGE IS USER FRIENDLY .
The centralized exchange has been built in a way that, It has a user-friendly interface which makes it very simple and reasonable to access or understand, This makes it possible for users with less knowledge to also operate, Also we have other exchanges to be having some several interfaces (levels) to their users, So users are free to make their own decisions or any level of interface they are comfortable in accessing.
NO NEED FOR PRIVATE KEYS.
The centralized exchange has been built in a way that users do not need private keys before they can access or run transactions, unlike the DEX where private keys are required for all transaction activities. With the CEX they are always responsible for holding users' private keys, So anytime users run transactions on the CEX they receive an authentication code through their phone number or email to help process all transactions activities, Also with the CEX users are free to retrieve back their forgotten password by following some few steps, But with the DEX it is very difficult for users to retrieve back their mission keys.
So here before users would go in for any exchange for their trades they must look out to some futures. Every individual and what they look for when choosing an exchange for their trade, In my next writing I will be listing what I do look for when choosing an exchange.
- TRANSACTIONS FEES.
Usually, before I go in for an exchange to trade my assets, The transactions fees are what I do look at first, Usually, the exchanges it has been built in a way that their source of income is always gotten from the transactions operated on the exchange in a form of transactions fees, Some exchanges transactions fees are higher than the other, So I do look to the exchange which offers fewer transactions fees and also has the best trades future or assistance.
- LIQUIDITY OF CRYPTOCURRENCIES.
Usually, before I go in for an exchange to trade my assets, The liquidity is what I do look second, I always make sure the exchange I am about to trade-in is had numerous cryptocurrencies asset which is going to meet my needs, Also I see to it that the exchange must be willing to accept all sorts of transactions activities either huge or small that I will be operating, If the exchange is willing to offer me all this then I am free to go.
- REVIEWS BY USERS USING THE EXCHANGES
Usually, before I go in for an exchange to trade my assets, The security is what I do look third, Before I go in for any exchange for my trades, I usually make time for myself to be reading people's comments from some media such as Twitter, telegram and more about the exchange I am about to trade on, I always look out to positive comment on the exchange before I will trade in that exchange.
- EXCHANGE SECURITY.
Usually, before I go in for an exchange to trade my assets, The security is what I do look fourth, This is also regarded as one of the most important things I do check whenever I want to trade on any exchange, Mostly I do all types of research about their security, Things put in place to ensure that all users are free from frauds and I also do check their last shortcomings and how they were about to found solutions to it, I might lose all my capitals if the exchange I am trading on has fewer security problems so I am very more concerned about the security.
So here every user has his or her own centralized they do prefer the most. Even though we have a lot of centralized exchanges but my favorite exchange is the BINANCE EXCHANGE, Because I am very familiar with it and I do use it most of the time in all my transactions activities.
As I said earlier BINANCE has been my favorite exchange of all time, It is also regarded as the highest exchange we have in the crypto world. As it always seems to be the exchange that always records the highest transaction activities operating on any exchange during the day. The BINANCE was successfully launched and been registered in the year 2017, So almost a five years since the BINANCE came into existence and it is doing marvelous works, The founders are Changpeng Zhao and Yi He, Currently we have the headquarters of the BINANCE to be in Seychelles, This is where the BINANCE headquarters can be found. The BINANCE exchange happens to be a centralized exchange that is mainly used by users for numerous trading methods such as margin trading, Spot trading, and Perpetual trading, these trading methods is helping users across the world, Best it is having high liquidity that’s it has numerous tradable cryptocurrencies and swapping of cryptocurrencies to other cryptocurrencies is very easy and simple on the BINANCE exchange that’s why it regarded as all-time exchange.
Also, the BINANCE exchange is a very respected centralized exchange which is running in numerous countries, The BINANCE has been made accessible in a lot of countries, and Only a few countries are unable to access or operate the BINANCE due to banned or restrictions by authorities in such countries. In the past year, the BINANCE exchange has been the best of all time and it is always ranked number 1 on all other exchanges due to its effectiveness. Now from the coinmarketcap
| BINANCE INFO | OUTCOME |
|---|---|
| RANK | #1 |
| EXCHANGE SCORE | 9.9 |
| AVG LIQUIDITY | 847 |
| WEEKLY VISIT | 21,908,745 |
| VOLUME 24H | $11,961,155,539 |
With the BINANCE it is always regarded as one of the best-centralized exchanges with very high security or safety, This makes all transactions performed on the exchange to be more secured or protected due to the high security of the exchange, So this helps to minimize all fraud activities.
The BINANCE exchange is regarded as the all-time best-centralized exchange for some good reason that it has been ranked number 1 on all other exchanges, And it also has very high liquidity as numerous cryptocurrencies are been made available to trade or paired.
With the BINANCE exchange usually requests very low transaction charges for withdrawal or paired with other cryptocurrencies, When compared to the other exchanges.
The BINANCE exchange has this special future called the SUPPORT, This can also be referred to as a chat room where every user is free to seek help, Report frauds or any difficulties and they are free to ask questions about anything bothering their mind.
- I think the BINANCE exchange should try their possible means to be accessible in these countries China, Japan, Thailand, Ontario, and Malaysia, I do have a friend in Malaysia so as I decided to brief him a little about BINANCE he was impressed and wanted to access but unfortunately there is a restriction, So I would like the BINANCE team to extend it over those countries mentioned above.
- I think the BINANCE exchange and the whole team should be taking some notice of the KYC or verification process, This process is a bit stressful as you need to upload a valid ID before you would get verified, At times you do provides a valid ID but the systems keep rejecting, Mine took me over a week before I was able to verify my BINANCE.
- Also sometimes when you make a P2P transactions, Some users sometimes do waste a lot of time before they turn to you, This is very bad, So BINANCE team must take this into account and resolve such problems.
- Some shortcoming of the centralized exchange is security, Users do not have access to their private keys, So anytime the exchange is hacked users will lose all funds.
- Most centralized exchange has a high transaction charge, especially when users try to make a huge transaction, This happens to be some shortcoming of CEX.
- Some centralized exchange such as BINANCE takes a very long time when it comes to verification of KYC.
So here, before some of these shortcomings can be resolved or protected users must be allowed to hold their own private's keys, This can help improve the security of the CEX.
Even though we have a lot of centralized exchanges in existence but yet I haven’t tried non of them, But the one I have tried is what I just discussed BINANCE, BINANCE being the top exchange it is regarded as an all-time CEX, The BINANCE also offers fewer transactions fees so I would like all users to be operating the BINANCE and they must extend to the countries such as Japan, Malaysia and many more
Thanks for showing interest. Users cannot make entries multiple times in a week. You posted earlier this week and your entry has been reviewed by a professor. See the link below to the first article.
https://steemit.com/hive-108451/@unrulyskido/steemit-crypto-academy-contest-s1w1-favorite-blockchain-network-by-dimplegh
As it stands, there is a high probability that this account is operated by @dimple-gh, this is deduced from the title written for the edited post.
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Hi @fredquantum, I don’t understand why I was given this ratings. Initially @reminiscense01 said my account should be active before he can review the post that’s why I thought it wise to make some post befor reposting the task. Please kindly reconsider. Because I think this is too hash.
Secondly I don’t understand why my account it linked to dimple-gh. Even dimple-gh didn’t participate in this contest so how can Copy from him.
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