What is Centralized Exchange (CEX) || 10% to @tron-fan-club

Assalamu AlaikumMy Dear Steem Friends,This is @kawsar from Bangladesh.

---

Today i will Discuss with you What is Centralized Exchange (CEX) & its Advantage and Disadvantage. i Hope you like my today's post, I always try to share with everyone what I know everything. So in its continuation today I will talk to you briefly about this important subject Centralized Exchange (CEX).

---

---

---

What is Centralized Exchange (CEX)

We use various crypto exchange sites to exchange our crypto assets. We must know that exchange sites are naturally of two types, centralized exchange site and decentralized exchange site. The centralized exchange site is under the control of someone, that is, if we create an account on this site, then the transactions that we will do or trade through it is under the control of someone.

The centralized exchange site has specific authority i.e. a central entity is controlling us here. They can monitor our every move and we can't do anything we want them to do or they can't do what they want me to do. They can use us as they wish. We can think of centralized exchange sites as intermediaries that bring buyers and sellers together or act as a bridge between them.

We can easily trade cryptocurrencies from this centralized exchange to the exchanges that allow us to trade. But here they have some rules, since centralized. So we have to trade in full compliance with their rules and regulations. If we want to have an account here, we must give our mobile number and our email address.

All our personal information i.e. our passwords are all but recorded with this exchange site. And we cannot fully trust this centralized exchange site or think that our crypto assets are completely secure. Since they have all our information and they have all the control. A lot of times I find examples where a lot of dollars are on the centralized exchange but due to a problem he is not able to verify his account and he is not able to withdraw his assets. It is often seen that if mobile verification is turned on and the mobile number is ever lost, then it will not be possible to withdraw the crypto assets in that account. Since a code will go to the mobile and if you can't give that code, withdrawal will not be confirmed.

---

Centralized Exchange (CEX) Advantage:

• High liquidity is available at centralized exchange sites.
• The centralized exchange site transaction speed is very good, so users can feel a lot of comfort by chatting here.
• If the password is lost, it is likely to be recovered.

---

Centralized Exchange (CEX) Disadvantage:

• Here we have to provide all our personal information such as: mobile number, email address, NID card to be verified. In that case I do not have privacy
• Since we are under someone here, we are not completely safe with our cryptocurrencies.
• Many times we see that the exchange site is hacked. In that case, my assets are likely to be lost.

---

My Opinion and Advice:

My personal opinion and advice regarding centralized exchange site is that we will never use centralized exchange site for long time hold. In that case, if we want to hold, we must use decentralized wallets and keep our personal key safe. Then our resources will be safe. However, we will use the centralized exchange site only for trading. We will trade the assets and bring them back to the decentralized wallet. Whatever I do personally.

---

---

Many thanks to everyone for reading this post carefully

𒆜🆃🅷🅰🅽🅺 🅴🆅🅴🆁🆈🅾🅽🅴𒆜

@kawsar