Am about to make a holy matrimonial union between three things in my world. These things are my writing, DeFi and Centralized Exchange CEX.
Do you know writing introduced me to digitalised life? With writing, cryptocurrency slowly crept in and soon I was speaking the digital jargon and actually investing and using online monetary value.
Centralized Crypto Exchange (CEX)
A centralized crypto exchange (CEX) is a business that provides you with a multitude of services such as a crypto trading platform (buy and sell transactions), account services (account funding and withdrawal), and customer support services
CEX soon introduced me to changing crypto into Fiat and vise versa. I got involved in P2P (Peer to peer) transactions. This is type of computer network often used for the distribution of digital media files. In these, transactions are done in a peer to peer form whereby one sends out crypto and receives crypto or fiat and vise versa.
In these transactions, an escrow is involved which is a security measure to ensure there is no fraud,scamming or phishing in the business.
It goes if somebody has cryptography to sell, he goes to such exchanges and identifies a buyer. The buyer is identified through a CEX app. The criteria to choose the buyer is by the following:
- The method of payment eg PayPal, bank transfer, other cryptocurrency or electronic wiring into other money collection.
- The amount to be transacted. There are limits to what one can transact.
- Time buyer is available.
Escrow is whereby a third person acts as a go between the buyer and the seller. Once an asset is in the escrow, the buyer pays the seller who releases the escrow to end the transaction. Some apps ask you to mark the transaction as good, fair or bad.
Decentralized Finance
Later comes the Decentralized Finance or DeFi. This one now deviates from the traditional centralized Finance to Decentralisation.
