Steemit Crypto Academy Contest / S1W2 – Reviewing Centralized Exchanges by @thimalteb

Entire question to be answered

• Discuss briefly Centralized exchanges and its Benefits to crypto users.
• What do you look out for when choosing an exchange to trade your crypto assets?
• Review your favorite centralized exchange and explain its unique features
• Is there anything about your favorite exchange you will like to be changed? Discuss.
• What shortcomings do you see on centralized exchanges and how do you think user funds can be protected since we don’t have access to our wallet private keys?

Discuss briefly Centralized exchanges and its Benefits to crypto users
To start proceedings I would start up by explaining what an Exchange is?
An Exchange is a platform where we can hold or trade out crypto or fiat assets. Depending on the sellers and the buyers, this exchange can be mainly been divided into two major parts namely; centralized exchange and decentralized exchange.
CEX -Centralized exchange
Centralized exchange is the place where ,crypto currencies and fiat currencies are being traded under the supervision of one single entity. This single entity will give the validity for the transaction between the buyers and the sellers. Unlike the decentralized exchanges, centralized exchanges do not allow all its users to access to the blockchain using the private keys.
Benefits of centralized exchange

• Mainly in centralized exchanges, the liquidity level of assets are comparatively high. Therefore the investors could have a good profit margin by doing the trading of assets.
• As centralized exchanges uses KYC, the transaction steps are very user friendly too.
• As there are no such private keys ,which is not handed over like decentralized exchange, it is easy for the CEX users to do the transactions.
• Transactions that are being done by using CEX is very fast and it will definitely save lot of time.

What do you look out for when choosing an exchange to trade your crypto assets?

• As a busy person, I would like to save my time as much as I can. So the first thing that I will look after before trading in an online exchange is the “time” that is being consumed for a particular stage.
• The next most important thing is the trustability and the efficiency of the particular exchange. For that I would check a quick look at the available trades, traders, assets etc.
• Another most important thing is that I look before choosing an exchange the amount of money which will be taken as the transaction fee. Because nowadays most of the apps do not want to pay the transaction fee and it will definitely high up your profit.
• Finally apart from the above mentioned facts, Security will be another most important fact to look after before choosing an exchange. Nowadays most of the exchanges are following a high security and among those I will choose the maximum security and most user friendly security system following exchange as my exchange.

Review Your Favorite Centralized Exchange And Explain Its Unique Features

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For this I will describe about my favorite centralized exchange, which is Binance exchange. At the moment binance, that was originated in 2017 has more than 5000 active crypto currencies with more than 800 crypto pairs.
Currently it’s high trading volume and high liquidity lifts up its capacity among the other exchanges in the market.
Low transaction fees, higher transaction speed, user friendly interfaces which has p2p trading margins and spot trading are some of its special features.
Unique features of binance

• Staking system -For me, staking is the most important feature that binance has provided. Because with staking people can earn a passive income. If you have crypto in large numbers, then binance is one of the best places to invest and get a reward back in the same time.
  
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• As I’ve mentioned earlier the order categorization has allowed its users to select their trading method (Limit order, market order, stop limit order &OCO) according to their wish.
  
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• Binance is an app where it doesn’t launch every cryptocurrency or token to the market, it only allows the crypto currencies or tokens which has a stronger background.
  
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Is There Any Thing About Your Favorite Exchange You Will Like To be Changed? Discuss.

• I would like to see a tutorial series in the same app to guide the newcomers to this platform because now it is a bit difficult and it will take some time for a newcomer to understand the binance app.
• Also when doing P2P transactions, I had to face some difficulties to complete the transactions because of the local banks. So, if someone can be looked into this, there will be more attraction for this app.
• Also I would like to suggest to implement the KYC process for binanace to make a secure place for it users.
• Another thing I would suggest is to make the verification process somewhat easier for its users because, at the moment it is slightly difficult for someone to go through the verification process.

What Shortcomings Do You See On Centralized Exchange And How Do You Think User Funds Can Be Protected Since We Don't have Access To Our Wallet Private Key?

• Third party involvement makes an unsecure place for transaction and this has made the freshers mind not to enter for the platform.
• Registration or the sign up process in Centralized exchanges are not user-friendly because authentication and verification methods are some what difficult when comparing to other exchange methods.
• Huge chance for a hacker attack is possible-when working with centralized exchanges, as because centralized exchanges do not concern the platform security in a greater manner.

How Do You Think User Funds Can Be Protected Since We Don't have Access To Our Wallet Private Key?
As we don't have the permission to enter our wallet with our private keys, I think enabling two factor authentication method is one of the best ways to overcome the problem because no one can get into your account without hacking or getting into your personnel mobile and email.

I would like to invite @hansihmd and @nethanya45 to participate in this contest.

Thankyou!!!