Good day to all steemians, it feels good to participate in the week two of this engagement contest and I want to specially welcome everyone to my blog. In this article I will be discussing and reviewing centralized exchanges.
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Centralized exchanges (CEXs) are platforms that coordinates the transactions of various cryptocurrencies I.e this platform permits the trading (buying and selling) of various crypto coins. CEXs are actually mostly used by investors to trade cryptocurrency. Centralized exchanges first came up in 2010 and ever since then, we've had them in numbers now and they are now widely accepted and recognized to trade cryptocurrency. CEXs works with regulators and tightening security, hence their users have trust in them due to the safety and security it has.
The main idea behind centralized exchanges is that they make use of a middle man known as the intermediary to help execute trades. CEXs platform keeps digital order books, this books usually consist of open buy and sell orders and as well as volumes and prices. The system automatically match up buyers and sellers and state the current market price that an asset sells for. It is also required that a user deposit his/her crypto asset at the exchange before he can trade on the platform.
BENEFITS OF CEXs TO CRYPTO USERS
Centralized exchanges permits users to trade their fiat for cryptocurrencies. On the CEX platform, you will see the pairing of fiat currencies like USD with some crypto asset like BTC, ETH, TRX etc
Customers that uses centralized exchanges enjoy the privilege of putting money into crypto investment opportunities like farming, staking, savings and even NFTs.
Another good thing about centralized exchanges is that they provide optimum security for every transactions or trading that is carried out on the platform and this give more confidence to the users of the platform.
CEXs also have friendly user interface that makes it easy for users to explore and navigate through the platform.
I will be highlighting below some important features I always watch out for when I want to choose an exchange to trade my crypto assets.
First and foremost, what I check out for is the credibility of the platform, I check out for customers review online to know their experience with the platform if it is good or bad
I also ensure I check their 'About' and the 'Terms and conditions' before signing up in the platform.
Also, it's important that the platform has a user-friendly interface that is easy to navigate through.
Also, I always love to check the amount of Token/crypto pair they have available on their platform
Another thing I look out for is structure of trading fee because some of this exchanges normally charge high trading fee which I personally don't find comfortable
No doubts, my favorite CEX platform still remains Binance and I will be discussing briefly about it
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Binance is currently the world's largest crypto trading platform and it was founded in 2017 by the CEO changpeng Zhao
It is the fastest platform in the crypto market and also it has the largest trading volume, averages about 2 billion daily volume of transactions which is quite incredible
BNB is the native cryptocurrency of the Binance exchange platform.
Binance also provides a crypto wallet for its users and traders to keep or store their crypto assets and funds.
Another interesting review of the Binance exchange platform is that it has one of the lowest transaction fees in the crypto space.
The name 'BINANCE' actually was coined from the combination of two words namely 'BITCOIN' and 'FINANCE'
Lastly, the Binance platform has a multi-level security and safety and not only that it delivers a high processing throughput of which is about 1.4 million orders per second.
UNIQUE FEATURES OF THE BINANCE EXCHANGE PLATFORM
The Binance exchange is very easy to navigate both for newbies and advanced traders.
The Binance platform offers users with different types of wallet to store their respective crypto and fiat currencies on the exchange platform.
Binance is compatible with mobile phone (IOS and Android), the App can be downloaded on Google play, Android Apk and Apple store.
Binance exchange has a very wide range of platforms for trading and investment, these includes : Basic, classic, advance, margin, OTC and p2p.
Another important feature of Binance is the launchpad which enables users to review new crypto project details which also includes the whitepaper
Binance supports both deposit and withdrawal of cryptocurrency and fiat currencies
Binance offers 24/7 round the clock customer support which I think is very good.
Yes, one problem I face particularly on Binance was my verification, there were hiccups and it took a while before I could be verified, many people too have complained about this and I think the Binance team should work on making the verification much more easier.
Also I would love it if the minimum trading fee can be reduced to $5 instead of the current stipulated $10, this will enable more people to come on with the little money they can afford to start with.
One major shortcoming that everyone would agree with is that users do not have control of their funds since the transactions is being regulated by an intermediary.
Apart from Binance, virtually all other CEX platforms have very few crypto pair option to trade on which I personally don't like.
Another issue here is that most CEXs platforms are being regulated and censored by governments which means they do not have free hand to operate and they may have to dance to the tune of the government and this does not go well with lots of people because they believe government can at any time come up with unfriendly policy that could affect the platform negatively.
HOW FUNDS CAN BE PROTECTED ON CEX PLATFORM
I think, CEX platforms should ensure they are well insured first of all, this will help them protect the funds of customers entrusted into their hands
Also, I think users or customers should think diversification, like instead of putting all your funds or storing all your crypto on one CEX exchange, why not diversify them and put some in other CEX platforms that are also secured or even store some on DEX platforms.
The importance of centralized exchanges in the crypto ecosystem cannot be over emphasized, they offer security and user-friendly interface but however, I will encourage anyone who wants to use or sign up on any CEX platform to do his research properly before investing or trading on the platform.
Despite the numerous advantages of the CEXs platform, there are still some little flaws I would like the team and management of this platform to work on which have outlined in this article.
It's been an interesting topic of discussion and I want to appreciate you for reading through, thanks !
I hereby invite @solexybaba @nahela @geminis56 @bright6126 to participate in this contest
Centralized exchanges make it very easy to use for users, that's the good thing about using these CEX, and also like you I would like to see the trading fee drop to 5$, having it at 10$ is proving to be a big limitation.
Greetings my friend.
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Obviously it will be good if the trading fee drops to that $5 on Binance and some other CEXs platforms as well, thanks for reading through friend.
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I am also a user who uses binance. I'm been using the binance exchange for about seven months now. But I did not have any problem doing the verification. It was not long before I was able to pass the verification test. I think the reason for the delay in verification of some users may be the ambiguity in the license or passport issued by them. Such ambiguities may delay verification.
And one of the problems I have is not being able to buy and sell for less than $ 10 when making a trade. I would also like this to be less than $10.
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Hmmm, i quite agree with you though, some users are at fault for the delay in verification also but nonetheless, they should look into that area I believe more can still be done in that aspect, thanks for dropping your comment friend
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It's an amazing content filled with enough information about CEX! Thanks so much
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Thanks for reading through friend
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I equally havd use binance and i like the fact that it provide users a good security to their funds. You can not withdraw your funds without providing the needed key, and also it is not easy for one to jeopardize your wallet where your assets are kept in. Nice choice brother.
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Thanks for reading through and leaving a comment friend
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Your thoughts on changes to Binance exchange is really important for all the users of Binance.
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