The market forces in the cryptocurrency world are highly affected by some of the influential people across the globe. One of the most influential people, the CEO of Tesla, recently affected cryptocurrencies to a large extent. Because of his statements, bitcoin experienced an increase in its value. Also, there was a decrease in bitcoin value on excluding bitcoins from the financial system of Tesla as per the company’s CEO, as per the official trading platform. However, he is still not away from cryptocurrency. Tesla’s CEO is a firm supporter of cryptocurrencies but he wants to warn the general masses about different exchanges. He says that he is not looking forward to believing in any centralized cryptocurrency exchange. It is just like the decentralized one. He believes that everyone should have control of their cryptocurrency keys.
Recently, the billionaire and founder of SpaceX expressed his concerns regarding the DOGE coin on the cryptocurrency trading platform Binance. He raised the concern because there was some problem in using the DOGE coin on the cryptocurrency trading exchange, and therefore, he raised the concern. However, the CEO of Tesla and Binance started to have some spat on Twitter recently. Because of this, the SpaceX CEO wants the investors of DOGE that they should not to be using this cryptocurrency trading exchange as it is facing problems in facilitating transactions.
Also, the investors trying to use their Binance account to make a transaction in DOGE face several problems. First, the company froze their account because of the transaction they were trying To make. In the recent tweet, the Tesla CEO asked Binance CEO what is the issue going on with the DOGE customers and called it shady.
What is the matter?
We are very well aware that cryptocurrencies are stored on cryptocurrency exchange wallets. Sometimes, the wallet is itself owned by the trading platform, and sometimes, it is working separately by some other company. However, recently, there was a tweet made by Bill Lee, who is one of the most prominent investors in the business ventures of Tesla’s CEO. The CEO of Tesla also responded to his tweet and said that he wholly agreed with the statement of Bill Lee. The CEO of Tesla tweeted that when cryptocurrency wallet keys have an exchange owner, the investors cannot call the holdings their own. Also, the CEO of Tesla wants people to keep a record and keep their private keys rather than using cryptocurrency exchanges for handling them. On this matter, there was a massive spat between the CEO of Tesla and the CEO of Binance.
Types of exchange
To have a clear understanding of this matter deeply, you need to know about the different types of cryptocurrency trading exchanges. The type of safety we’re getting from your cryptocurrency depends on the type of cryptocurrency exchange you use. And exchange is a market that you can use online to purchase, sell, and trade any digital coin you want. Also, it works as a brokerage system, and you can deposit any Fiat currency if you want. There are two types of cryptocurrency trading exchanges out there in the market. The first one is decentralized, and the other one is satellites. However, according to Tesla’s CEO, both come with their benefits and disadvantages and, therefore, never trust them.
First, there is centralized cryptocurrency exchange like WazirX and many more. With a centralized cryptocurrency exchange, you can get many services like converting crypto to crypto and Fiat currency. Moreover, the transaction can happen between two or more parties, and therefore, these offer a little bit of higher satisfaction and security to their customers. Also, as you have to submit your documentation to know your customer registration on the platform, you can have better transparency.
Secondly, there exist decentralized cryptocurrency exchanges. They provide you with a higher degree of security because they do not store any customers’ private keys. Therefore, anyone who is trying to hack the cryptocurrency wallet is going to fail. The system used for initiating a transaction on decentralized cryptocurrency exchanges is like Blockchain, Ethereum, and intelligent chain, making them completely transparent. While trading on a decentralized cryptocurrency exchange, the user himself remains the custodian of the coins. He has to use a Wallet separately, and therefore, he ensured security on his own.
