When it comes to centralization, it indicates that it is governed by a team member or an entity with access to that ecosystem. Similarly, when we hear a centralized statement about exchanges, we realize that the assets in that exchange are not always ours.
Centralized exchanges are ones that have been created by a team member and are used for investing and trading purposes.
There are several centralized exchanges in the cryptocurrency sector, the largest of which being #Binance and #Kucoin, however they are not safe and secure. Remember what happened to FTX, another cryptocurrency exchange which crashed in a single day causing many losses to the investors.
The purpose of this post is to warn you about all of the cryptocurrency exchanges that you should never trust. You can use their site for trading and minor investments, but for larger sums, you must use DEX.
When I talk about the #hive ecosystem, I mean a decentralized platform in which your assets are completely secure and no one or group of people has control over your account or wallet.
Also excellent news for #hive traders is that you may easily trade on the internal market without than going to other CEX exchanges. You can trade on the internal market with no costs, and your money will always be safe.
No centralized exchange is safe to invest significant sums of money. If you wish to stay with these exchanges, I recommend diversifying your funds among at least two. It is preferable to invest in four separate exchanges to reduce your risk.
Never invest in a single exchange or keep a large number of coins in one wallet. Because centralized exchanges have a major disadvantage: they are not secure in terms of asset security.
You have two alternatives for safeguarding your money: employ decentralized wallets or diversify your amount among at least four exchanges. This will ensure the protection of your assets.
I hope you find this post interesting and I hope you will like it. If you like the post, please leave feedback in the comments section so that the next one will be even better. Thank you for sticking with me until the end.
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REMEMBER: We should prepare for the unexpected and hope for the best. Life may not be easy, but you must do your best and leave the rest to God.
