As a professional crypto trader or even a beginner in this industry, you must have heard a lot about centralized and decentralized exchanges. In this article, I will expose you to the beauty of using a centralized exchange for your trading and coin custody.
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Let's start by explaining in detail what centralized exchanges are.
A centralized exchange (CEX) refers to any cryptocurrency exchange platform that operates with a centralized authority. In this type of exchange, a central entity, typically a company or organization, manages the trading process and holds custody of the user's funds. An example of a centralized exchange is Binance.
What are the advantages of using this type of platform?
1. Liquidity: Centralized exchanges generally have higher trading volumes and liquidity compared to decentralized exchanges. This helps users buy and sell cryptocurrencies easily and without significant price impact.
2. Customer Support: I have seen several cases of individuals being scammed in the attempt to contact customer care to resolve a challenge, but on CEX, you can easily do that by logging in to your app and clicking Customer Support.
3. Fiat On-Ramp: No matter the amount of FUD being spread about CEX, you will surely need them when you want to convert your crypto to your local currency. Easy deposit and withdrawal.
4. User-friendly interface: Not many people can trade on DEX due to the complexity, but on Binance everything is simplified. With just one click, you can buy and sell instantly.
5. Anti-Money Laundering (AML): CEX, like Binance, is known for its strict compliance with the law. This helps mitigate the risk of fraudulent activities and promotes a safer trading environment.
In conclusion, Centralized exchanges offer a great service to this industry, and we surely need them.
What do you think about CEX?
Where do you trade frequently, DEX or CEX?
Share your answers in the comment section.