So first some basic introduction about need for centralised and decentralized exchanges
In the world of blockchain technology exchanges are needed for buying and selling of cryptocurrencies moreover these exchanges also offer trading pairs which makes a trader easy to choose.
Generally a trader can also choose spot trading or future trade over the exchanges. Comparatively centralised exchanges have third party interference unlike decentralised exchanges. Coming on to charges centralised exchanges rates are higher compared to decentralized exchanges.
For investing in digital assets like cryptocurrencies a trader needs an exchange and centralised exchanges are one of the important mode for making transactions. Being an online platform centralised exchange is used for buying and selling of cryptocurrencies .
As I mentioned above in centralised exchanges there is a vital role of third party like a bank which helps in conducting transactions. These exchanges help in safeguarding the money of an investor as the exchange is controlled by its owners. Centralised exchanges provides smooth and simple process of transactions.
•Being a user friendly exchange centralised exchange also provides the facility of trading Fiat for cryptocurrencys and the same can also performed while withdrawal which becomes easy for traders to perform trading.
• In terms of safety and security centralised exchanges are the best as they provide the traders with extra security as third party is included in centralised exchange due to which it becomes more safer to trade on these exchanges.
• another best feature of centralised exchanges are possibility of recovery of funds even if one loses the password unlike decentralised exchanges .
•Central exchanges also provides better liquidity of funds compared to decentralized exchanges which makes it a better place to trade.
SAFETY AND SECURITY
The first thing which I would like to keep in mind while choosing any exchange to trade any amount of funds is safety and security of the funds because trading in blockchain is very risky as lots of frauds are committed. So I will choose a safe and secure exchange which provides safety to the funds and crypto wallets .
CHARGES OF THE EXCHANGE
the next important point between need to keep in mind while choosing and exchange is the transaction fees charged by the exchange as I always compared the transaction fees for each trade and accordingly choose the exchange.
EXCHANGE'S CREDIBILITY
success of an exchange depends upon its credibility rate and so before investing on any exchange we must look at its credibility and reliability of traders before using it.
SECURITY OF THE FUNDS
The most important point we need to keep in mind while choosing an exchange is security of the funds. We also need to look at the point that the wallet should not get access in anyone else's hand accept the investor.
BASIC TOOLS FOR ANALYSIS
The exchange should contain all the tools for proper analysis which helps an investor to compare and then invest accordingly.
Poloniex is the favourite exchange of mine and I generally prefer trading on this exchange due to the factors which I will be revealing in this question.
Homepage of poloniex
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POLONIEX MY FAVOURITE EXCHANGE
Some introduction to Poloniex
Founded in 2013 by and was established by Tristan D’Agosta Poloniex is a cryptocurrency trading exchange and it uses a web based trading platform. Poloniex also provides three level verification process which includes identity card, email and personal details verification. Poloniex is one of the most used trading platform in the world supporting more than 350 Cryptocurrencies. It has its own decentralized exchange Poloni DEX.
Poloniex also provides margin trading and give the facility of low fees at any trading volume. Personally I like trading on this platform but it has a mixed review as once it was hacked in 2014 when 12% of holding of the company was lost as in digital world anything is not safe and too secure so if you are careful poloniex is the best option.
UNIQUE FEATURES OF POLONIEX
•Provides active trading platform: one of the best features of Poloniex is that it provides active trading platform with different indicators .
•Lower trading fees : at any volume of trading Poloniex provides low fees of 0.155% which if you will compare with other trading platform is relatively very low.
• safety due to third party interference: Poloniex in terms of security is best as it contains third party interference which takes care of the funds and helps in safe storage.
• provides margin trading and lending facilities: Poloniex provides leverage and future trading options . It also provides margin trading and lending facilities.
As nothing is so perfect in this world of technology and blockchain the changes which I would like to recommend about my favourite exchange is :
Quick withdrawal facilities
Few days ago one of my friend withdrew some amount of Steem for transferring it to another exchange but it took around 2 days. So I want to suggest team to fix this problem which would make it possible for quick withdrawls .
When you are an intraday trader and if you face problems during transfer of the funds it becomes difficult for you to carry the daily basis trading so the thing I like to be changed on Poloniex late withdrawal.
•Risk of insolvency
In Central exchanges there are always risk of insolvency from the owner's side due to which traders have to suffer as these Exchanges are private corporations.
•Manipulation
There are some exchanges which have been accused for manipulating and conducting insider trading and price manipulation which creates a trouble some scenerio for genuine traders.
•Charging of High Fees
Centralised exchanges generally charges high transaction fees for their services which is the biggest shortcomings of Cryptocurrencies world.
Users and can be protected by making a portfolio of different assets on different Exchanges . Using of different Exchanges for trading can reduce your risk to some extent as different Exchanges cannot commit fraud at once .
Passwords of the wallets need to be kept safely by not sharing it with anyone or any websites as your account may be hacked if you share your passwords to any unknown websites.
In the world of blockchain technology Exchanges plays an important role as it provides us with the facilities of trading to long-term investment and also helps in safe guarding our digital funds. Both Centralized and Decentralized Exchanges has their own pros and cons . For a beginner centralized exchanges are best as it comes with third party interference which enhances security of funds. I generally prefer Binance and Poloniex Exchanges for trading and recommend others the same.
