Thread by @OnrampAcademy

Happy Monday Onrampers! @wendy_mfox bringing you your daily dose of crypto with #OnrampWordOfTheDay sponsored by #Onramptionary

Today’s word: Centralized Exchange

While our current business model focuses on the RIA space, we recognize the need for the widespread adoption of cryptoassets because, as adoption among the general public grows, so will the need for RIAs to fall in line

According to a recent blog post by @chainalysis, global adoption of the cryptoasset ecosystem has increased 881% over the last year.

The DeFi movement has been a huge contributor to this, but centralized services (like exchanges) have helped as well

Which brings us to our word of the day!

Centralized exchanges are online service platforms used to buy and sell cryptoassets

They play the middle man between suppliers and buyers while providing an atmosphere of equity, safety, and trust. Two examples include: @Gemini and @coinbase

Centralized exchanges are, for many people, the gateway into the crypto marketplace due to their user-friendly interfaces that make it easy to sign up, but also buy, sell and trade cryptoassets

This differs from traditional financial exchanges in that one asset can be directly exchanged for another
(Ie BTC for Eth )

That is not the case for traditional markets where the investor would liquidate asset 1 before purchasing asset 2

In comparison to TradFi, crypto exchanges, custodians, and brokers have many nuances you should be aware of

We highly recommend checking out our primer on crypto brokers, exchanges, and custodians.

It’s in the primers tab at academy.onrampinvest.com

It’s clear, concise and includes and super helpful #venn diagram courtesy of our talented design team

While you’re there, sign up for a free 30-day trial because it’s never too late to #EducateBeforeYouAllocate

See y’all tomorrow with another OnrampWordOfTheDay