Best Web 3.0
we are going to explore the main difference and the pros and cons of both, so that you have a clear understanding.
I have been asked this question millions of times. Which one do you prefer?
My answer always is the same : Decentralized. I prefer Decentralized because I have full control over my money (See what happened whit the last crypto crush). Then they start with the argument that if it is entirely Decentralized is impossible to regulate. My answer always is: we need to think outside the box and we can’t ask those that centralize everything to do it, is not in their nature. We should take complete control of our finances and create a system that finally benefits all. Even though I know they’re going to be skeptical reading this and say this is a utopia but I can tell you that are some very smart people that are working on that. The system in the way it works is not functional, we need to change the way we do things and our mentality too.
Before we move on we need to define what both of these terms mean. We are also going to dive deep into the pros and cons of both so that you can make your choice.
Centralized meaning
It is self-explanatory Controlled by a single authority or managed in one place. Another way to put it is the process of concentrating power and authority in the hands of senior management. So Centralized are controlled by one person or enterprise that guides all the decisions.
List of the top Centralized Crypto: XRP(ripple), NEO, EOS, BNB, CRO. Now let’s see the Pros of a centralized Crypto Exchange.
Centralized Exchanges Pros
The majority of Crypto users are using Centralized Exchanges. Here we will list why is so.
- High security: Centralized Crypto Exchange provides strong security for investors’ funds, because they have in place the identity verification process carried out on registrations. Thus, buyers and sellers are traceable.
- Strong Liquidity: They are usually a big company with many investors that give piece of mind regarding desired price without much slippage.
- Regulated: Most centralized exchanges are registered with the relevant financial authorities in the countries where they operate. This means investors can also trace the owners of the exchange through regulatory agencies should they ever abscond with the investors’ assets.
- User Friendly: Their platforms very easy to use; by providing a simple guide to users on how to ruminate their platforms. Equally, the centralized exchanges provide 24/7 customer support service channels to address various issues and complaints from their clients.
(Here is where you should Keep your Crypto Money)
Centralized Exchange Cons
The following are the disadvantages with using a centralized exchange:
- Prone to security breaches: Centralized exchanges use wallets to enable their users to gain access to their platform has made them susceptible to attacks from hackers. Many criminals today now target the large volume of funds traded in centralized exchange as a good place to rob.
- Commissions are charged for each transaction: Most centralized exchanges charge some commissions for using their platforms and usually commission are really high.
Top 5 Centralized Exchange and Crypto
Launched in July 2017, Binance is the biggest cryptocurrency exchange globally based on daily trading volume. Binance aims to bring cryptocurrency exchanges to the forefront of financial activity globally.
- Cronos
Cronos Chain is one of the products in Crypto.com’s lineup of solutions designed to accelerate the global adoption of cryptocurrencies as a means of increasing personal control over money, safeguarding user data, and protecting users’ identities. The CRO blockchain serves primarily as a vehicle that powers the Crypto.com Pay mobile payments app.
The most popular of them all. Easy-friendly to use and Coinbase is a secure online platform for buying, selling, transferring, and storing cryptocurrency.
- FTX Token
FTT is the native cryptocurrency token of the crypto derivatives trading platform FTX launched on May 8, 2019. The team behind FTX comprises some of the largest crypto traders over the past few years.
- KuCoin Token
KCS is the native token of KuCoin, which was launched back in 2017 as a profit-sharing token that allows traders to draw value from the exchange. It was issued as an ERC-20 token running on the Ethereum network and was supported by most Ethereum wallets. The total supply of KCS was set at 200 million, and there is a planned buyback and burn until just 100 million KCS remain.
Decentralized meaning
The dispersion or distribution of functions and powers. to move the control of an organization or government from a single place to several smaller ones. Most cryptocurrencies and their underlying blockchain are decentralized, which means no central authority is in charge. Instead, the power is distributed among the members of any given blockchain or crypto community.
Decentralized Crypto Exchange Pros
- Helps to hide the identity of the users: Using a decentralized exchange gives the traders the kind of privacy they desire while carrying out their financial transactions. Most investors and big institutions use the decentralized exchange to hide their net worth to escape government taxation.
- Gives users total control over their assets: There is no central body that controls the decentralized exchange. Hence, users have full control over their assets and can decide what to do with them. The cases of hacking are highly minimized while using the decentralized exchange.
- Helps to surmount government sanctions: Very often, users from those countries where crypto trading is prohibited by the government; consider the decentralized exchange as the best way to overcome those government sanctions. This is because it is very difficult for the government to penetrate it.
Decentralized Crypto Exchange Cons
The following are the disadvantages associated with using a decentralized crypto exchange:
- Does not allow the exchange of Fiat Currency: It is not possible to exchange crypto for fiat money using a decentralized exchange. Doing so, no doubt will reveal the identity of the receiver
- Highly Vulnerable: The founders of the decentralized exchange are not known to users. This makes all crypto transfers through them very prone to lose as the anonymous owners can easily abscond with them. Sadly, there is no way to trace them.
- There is no one to complain to in cases of failed transactions: All transactions carried out on the decentralized exchange are at the owner’s risk. No one is available to assist new users or resolve failed transactions.
Top 5 Decentralized Exchanges and Crypto
Uniswap is, without a doubt, the most popular decentralized exchange, and it’s difficult to understate its impact on Defi. One year ago, Uniswap was an afterthought in the emerging Ethereum Defi ecosystem; now, it’s at the center of it.
Despite Uniswap’s popularity, low liquidity continues to be a huge hurdle. Low liquidity means high price volatility and slippage (the difference between the expected trade price and the executed trade price). Liquidity has also been scattered across multiple exchanges, exacerbating the problem. 1inch is a DEX aggregator that addresses this problem.
Balancer
Balancer plays an important, albeit slightly different, role in the Defi ecosystem. Like Uniswap, Balancer is an AMM that allows users to swap ERC20 tokens. What differentiates Balancer, however, is its use as a portfolio management tool. As its name suggests, Balancer balances assets in a liquidity pool based on a given ratio.
SushiSwap
Back in August 2020, anonymous developer Chef Nomi released his Uniswap fork, SushiSwap. The platform gained popularity by copying Uniswap’s AMM and adding liquidity mining. Liquidity miners pounced on the opportunity because of SushiSwap’s superior returns, but the hype train ended up being short-lived: Chef Nomi cashed out 37,000 ETH (USD 13 million), causing an enormous controversy in the Defi space and branding SushiSwap as yet another “exit scam.”
Matcha
Matcha is another DEX aggregator, based on the 0x protocol. Competition is pretty fierce for DEX aggregators, but Matcha separates itself from the pack because of its wonderful user interface. When searching for a token you will see a price chart, your recent transactions, and market updates.
Factors to consider while choosing an Exchange&Crypto
There are ten major factors one needs to consider while choosing a crypto exchange. The following factors are discussed:
- Regulated
- Multiple options for Deposit and Withdrawal:
- Ease of Withdrawal
- The number of tokens supported
- Commissions charged
- Customer Support Services
- User review
- Years of Experience
- Global Presence
Making a Plan Before You Jump In
You may just want to buy some cryptocurrencies and save them for their potential growth in the future. Or you may want to become more of an active investor and buy or sell cryptocurrencies more regularly to maximize profit and revenue. Regardless, you must have a plan and a strategy. Even if your transaction is a one-time thing and you don’t want to hear anything about your crypto assets for the next ten years, you still must gain the knowledge necessary to determine things like the following: What to buy, When to buy, How much to buy, When to sell. I will make an article regarding that. Always with Crypto is important to watch the latest news and check daily price chart likely we offer that.
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