Centralized crypto-exchanges have several benefits over decentralized exchanges due to which many expert crypto-traders prefer them. Centralized crypto-exchanges are very similar to traditional stock market exchanges. The centralized exchanges are controlled by central entities that have power over the transactions that occur on the platform.
The advantages of centralized crypto-exchanges make them very popular among traders. These exchanges have a formal architecture in the volatile crypto-community. One of the key attributes of a centralized crypto-exchange is higher levels of legality. The exchanges are also better regulated. Most of these exchanges are licensed with KYC/AML procedures firmly in place. This feature makes centralized crypto-exchanges more reliable.
In centralized crypto-trading platforms, all transactions are made through procedures set by the firm that controls the process of crypto-exchange. Users are usually given accounts to hold funds on the exchange and cryptocurrency purchases are made through these wallets.
Centralized crypto-exchanges also provide better transparency as most of these exchanges openly publish their address and exact location. Users are able to see where they are putting their funds and where to find them if necessary. There is also the added advantage that most centralized exchanges accept direct payment in fiat currencies and users will be able to instantly convert fiat to cryptocurrencies. In this manner, traders can quickly cash in on digital currency investments.
Better levels of security are expected on centralized crypto-exchanges due to the increased regulations on these platforms.
PCEX, a crypto-exchange by Panaesha Capital, uses the Wilson-Clark model of the security framework. This type of security focuses on data integrity and consensual validation.
PCEX also offers a broker channel for extra security. The broker channel is a way of providing personal assistance to each crypto-trader on the platform. Since PCEX is a centralized exchange, a hierarchy is formed; the exchange, brokers, sub-brokers and then the crypto-traders.
PCEX has a very reasonable transaction fee, and channel partners such as brokers and sub-brokers receive a considerable percentage of the fee. PCEX has just one other fee which is the withdrawal fee. Most crypto-exchanges have an array of fees and complex operations; PCEX will smoothen the crypto-trading experience in terms of fees and nature of transactions.
