Are non-KYC Crypto Exchanges as Safe as Their KYC-Compliant Peers?

In the world of cryptocurrency, there are two types of exchanges: those that require Know-Your-Customer (KYC) compliance from their users and those that do not. 

While both have pros and cons, many people wonder if the non-KYC exchanges are as safe as their KYC-compliant counterparts.

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Are non-KYC crypto exchanges as safe as their KYC-compliant peers?: eAskme

Is it safe to use non - KYC crypto exchanges?

There is a lot of debate in the crypto community about whether or not non-KYC (know your customer) exchanges are as safe as their KYC-compliant peers.

Some people argue that non-KYC deals are more vulnerable to hacks and scams, while others say that KYC exchanges are more likely to be targeted by regulators.

So, which is the safest option?

It depends on what your priorities are. A KYC exchange is your best bet if you're primarily concerned with security.

These exchanges have strict anti-money laundering (AML) and countering-the-financing-of-terrorism (CFT) policies, making them less attractive targets for criminals.

However, a non-KYC discussion might be better if you're worried about privacy.

These exchanges don't collect personal information from their users, so there's no risk of your data being leaked or stolen.

Ultimately, it's up to you to decide which type of exchange is right for you. If you value security over privacy, go with a KYC exchange.

If you value privacy over safety, go with a non-KYC exchange.

What can be the risks involved in a non - KYC crypto exchanges?

There are a couple of risks associated with non-KYC crypto exchanges, the first being that criminals may use these exchanges to launder money.

Secondly, since these exchanges don't have to comply with KYC regulations, they may not have the same level of security as their KYC-compliant counterparts.

This could lead to hackers targeting these exchanges and stealing customer funds more efficiently.

What are the advantages of using KYC crypto exchanges?

There are many advantages of using KYC-compliant exchanges, including increased security and compliance with regulations.

By having customers go through the KYC process, businesses can verify their identities and collect important information that can help prevent fraudulent activity.

In addition, KYC compliance can help exchanges avoid being blocked or sanctioned by financial regulators.

Benefits of using non - KYC crypto exchanges:

There are a few benefits to using non-KYC exchanges, the main one being that you don't have to submit personal information.

This means there's no way for the exchange to track your identity or transactions.

Additionally, non-KYC exchanges tend to be more decentralized than their KYC-compliant counterparts, meaning they're less likely to be hacked or shut down by governments.

Finally, since these exchanges don't have access to your personal information, they can't sell it to third parties (such as advertisers).

What do investors choose among KYC and non - KYC crypto exchanges to buy crypto coins?

There are many reasons why investors might choose to use a non-KYC crypto exchange over a KYC-compliant one.

Some of these reasons include the following:

• Non-KYC exchanges tend to be much faster and easier to use than their KYC-compliant counterparts. This is because there is no need to go through the hassle of providing personal information and waiting for verification.
• Non-KYC exchanges usually have lower fees than KYC exchanges. This is because they don't have the exact compliance costs associated with verifying customer identities.
• Non-KYC exchanges offer more privacy and anonymity than KYC exchanges. Customers' personal information is not stored on the exchange's servers.

However, it is essential to note that non-KYC exchanges come with risks.

These risks include:

• There is a higher risk of fraud on non-KYC exchanges, as there is no way to verify the identity of users. This means that scammers can more easily take advantage of unsuspecting investors.

Conclusion:

Ultimately, it is up to each individual to decide whether or not they want to use a KYC-compliant or non-KYC crypto exchange.

Both have pros and cons, but ultimately it is the user’s responsibility to ensure that their funds are safe.

For those who value privacy above all else, a non-KYC exchange might be the better option.

However, a KYC-compliant exchange might be the better choice for those looking for peace of mind and willing to sacrifice some privacy.

If you still have any question, feel free to ask me via comments.

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Centralized Exchange (CEX)

A centralized crypto exchange is a platform where transactions for the purchase and sale of virtual assets are made.

It supports both cryptocurrencies and fiat money.

Centralized Exchange (CEX): eAskme

Centralized exchanges (CEX) are considered online markets of the global digital economy.

Considering the standard financial system, any organization that works with finance is considered centralized.

They are a trusted intermediary for the client. An ordinary bank receives money from a client who transfers it to him for safekeeping.

The Bank disposes of the client's money at its discretion. Banks offer customers various services, ensuring customer funds' safety.

In this regard, a centralized cryptocurrency exchange has no difference from a bank.

The client entrusts his funds to the exchange, which it manages.

A trusted intermediary helps to restore access to the account if the password was lost for some reason.

Centralized Crypto Exchange: Classification

There are several criteria by which such platforms are classified.

Spot and derivative:

The first exchange transfers funds almost instantly between buyers and sellers.

The second type of exchange involves contracts (contracts for transferring finance for a specific time).

The contract can be indefinite or for a specific period.

An exchange with and without a fiat gateway:

The exchange with a fiat gateway is popular among users, as users can purchase cryptocurrency using their bank card or digital wallet.

In such an exchange, it is mandatory to undergo the KYC procedure.

Otherwise, access to the trading instruments of the platform will be prohibited.

An exchange without a fiat gateway:

There is no fiat gateway on such an exchange; only cryptocurrencies can be used.

At the same time, platforms of this type rarely require identity verification.

Therefore, they are preferred by traders who want to remain anonymous when trading.

Exchanges with and without leverage:

The exchange with leverage provides additional credit funds so the trader can increase the capital several times.

If the trading strategy is chosen correctly, the profit can be a large%.

Then the trader returns the loan with the percentage specified in advance in the contract.

Exchanges without leverage.

There is no leverage on such a platform; the trader uses his funds for trading.

The income from trading is less. However, the trader does not need to give a loan with interest to the exchange.

Highly liquid and low liquid exchange:

A highly liquid exchange is characterized by the fact that many traders work on it, respectively, and the amount of funds in it is pretty significant.

The greater the exchange's liquidity, the higher its rating, and the more popular it is in cryptocurrency.

A low-liquid exchange. It has a small number of clients and the number of funds used.

Such platforms are in the last positions of the ratings.

At the same time, traders prefer to use them, for whom a significant profit does not matter much.

Such sites do not impose requirements for user verification.

Advantages of a centralized exchange:

A centralized exchange provides:

• High liquidity.
• Many trading pairs.
• Fast transactions.
• Training materials for novice traders.
• A demo account for training.

The most significant volumes of trade transactions are carried out on centralized exchanges.

In particular, on Binance, they reach several billion dollars a day.

Centralized exchanges include only verified assets in their listings, so the risk of working with scammers who created scam coins is shallow.

Given the competition, centralized exchanges try to have a high reputation, so they present safe and profitable assets.

However, there are disadvantages.

Disadvantages of a centralized exchange:

If the exchange administration does not pay enough attention to security issues, cybercriminals may be hacking customer accounts.

On some exchanges, verification is mandatory.

Otherwise, access to trading instruments will not be allowed.

How does a centralized cryptocurrency exchange function?

The user registers on the platform, providing data about himself according to the exchange rules.

Then he replenishes his cryptocurrency wallet balance using cryptocurrency.

When the wallet balance is replenished, the trader can choose a trading pair from those presented on the exchange and trade it according to the developed strategy.

On a centralized exchange, various tools allow you to determine approximately what the dynamics of a trading pair will be.

You can use technical analysis, candlesticks, indicators, etc.

The success of trading largely depends on the trader's experience and ability to assess the current situation in the cryptocurrency market.

Well-known centralized exchanges:

Binance:

It is considered to be the largest centralized cryptocurrency exchange. Over 200 virtual assets are supported.

There is a fiat gateway, and users can buy a cryptocurrency for fiat using a bank card or electronic wallets.

The exchange has its own BNB token. The trading volume on Binance is several billion dollars every day.

And in 2021, the total trading volume exceeded $3 trillion.

Binance tries to comply with all legal requirements, so users must undergo the verification procedure, which can last several days.

Bitmex exchange:

On it, traders can use various trading instruments from leverage and perpetual contracts.

All transactions are made using Bitcoin and other cryptocurrencies.

Fiat funds are not used.

The Currency platform:

On it, traders can conduct transactions with the most well-known cryptocurrencies and assets in the form of tokens.

You can withdraw funds to bank accounts.

There is leverage; it is 100x.

LocalBitcoins marketplace:

Its distinctive feature is that it supports many payment methods.

There is a unique reputation system so customers can know who they are working with.

EXMO Exchange:

Started working 9 years ago. Cryptocurrencies are purchased for fiats; cryptocurrencies can be exchanged for dollars, rubles, hryvnia and other fiats.

Since the exchange is centralized, users must undergo a verification procedure to gain access to all exchange trading instruments.

Conclusion:

Thus, a centralized exchange provides each trader with many trading tools to make a profit.

Each of these platforms has its characteristics, including the number of pairs for trading.

Almost all centralized exchanges require verification.

A trader can choose to work on any centralized exchange and trade on it.

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