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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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Link
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?
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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
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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.
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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
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.
Chaii there are difficulties in verification process in binance. That's what I even faced too. Thanks to you for bringing out the point with me
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The experience was very annoying. I just thank God that the phase is over. It's a once in a lifetime verification unless Binance says so.
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For sure without God mine, would have been sorry.
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I also prefer Binance to other exchanges. Not because of the name but the features are cumulatively more. Liquidity and p2p are the Binance biggest strengths for me even though they also top in other areas where I've experienced some other exchanges.
When I verified, then Binance was okay with just BVN. But policy changes in the country constantly affected what could pass as a valid ID card. The verification stuff was probably difficult because of your 'valid ID card'.
If I may ask, which one did you use?
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They're really very helpful especially in Nigeria were government has banned Crypto currency trading.
I used my Nin and BVN to get verified. I had to upload a picture of my Nin (front and back).
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Okay. You used the card right? Cos Binance doesn't accept the reprint or slip.
P.S: If you had a more popular ID like DL or NP, it would have been easier. Glad to hear you finally did it.
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I used the slip and although it took my time, I was able to get verified successfully.
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Ok. No wonder.
You're fortunate it was accepted finally. Many people were unable to verify with that. Incase you need to help someone or verify on another exchange, you can get the NIMC app and download and print your NIN ID card (called digital NIN slip). Most exchanges accept that except crypto.com
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Como siempre amiga es un placer leerte eres la mejor
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Thank you for visiting my blog and reading my post.
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You have really made efforts in reviewing centralized exchange. I really commend your efforts and early timing.
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Thank you so much for the words of encouragement. I look forward to reading yours.
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You have produced a great piece here. I like your choice of Binance which is also my favorite exchange. Equally, I do hope they can make the process of verification a lot easier.
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You wrote well mouau girl, that's interesting post on Binance exchange
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Offering the best services is just the right thing to look at when compared with the fee. Some high fees are relative to the coin and more features associated with that coin.
I love your choice of Centralized exchange as you rightly said in your publication. Binance is topping the ranking table in the centralized exchange list, with market cap and Trading Volume. I just created my account on the Binance and I'm going through the educational tools on the platform. since you have been on the platform, I will be contacting you if need be. Thanks for this publication, very sure it will go a long way to boost the users of this Centralized exchange.
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Hola hermosa @beckie96830
Nos has dado un extraordinaria ponencia sobre Binance y su rendimiento
Me quedo con las ganas de abrir mi cuenta lo más pronto que sea posible para iniciar el uso de la plataforma en sí
Muchas felicitaciones, amiga
Éxitos en el desafío!!!
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Thank you so much. I'm glad my post motivated you in a good way.
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