How to make money on the cryptocurrency exchange through trading and investing

2 years ago 1982

The explosive growth in prices for cryptocurrencies has led to the fact that every person is interested in digital assets after 2022. However, it is not easy for a beginner to understand new terms and concepts, which is why most simply do not understand which way to approach earnings in order to profit from interacting with this class of digital assets that is gaining wild popularity. Below we describe how to make money on a cryptocurrency exchange, and briefly discuss popular methods for making a profit - trading, investing, arbitrage, etc. At the same time, recommendations are given for choosing exchanges, since beginners often have problems at this initial stage.

Every exchange player works using a strategy. Choosing a trading system is a complex process due to their diversity, and also due to the fact that the strategy must correspond to the person’s psychotype. For example, choleric people with an insane thirst for activity are not created for long-term investing, which mostly requires sitting and waiting. At the same time, people who are accustomed to making decisions slowly, carefully weighing every step, will not be able to make money when trading intraday, when they have to process a lot of information, acting quickly in a constantly changing market.

Below is a brief overview of the main approaches to help you choose the most relevant one. Before we get started, let’s answer the question of whether it’s realistic to make money on the cryptocurrency exchange. The answer is yes! Moreover, it is easier to make a profit on a crypto exchange than on a stock, commodity or currency exchange, since the digital asset market is just being formed and its global trend is strictly upward.

Trading on a crypto exchange

First, it’s worth considering trading, that is, speculative trading. The essence of this technique is to buy cheaper and sell more expensive. But in order to ensure yourself the opportunity to make money on a crypto exchange, you must adhere to the following recommendations.

Choosing a crypto exchange

It is advisable to work only with large, reliable exchanges. It is advisable to choose sites where there is a high trading volume, since there is sufficient liquidity and the purchased asset can be quickly sold. For beginners, the best option would be Binance, HitBTC, Huobi or, for example, Livecoin, which supports a Russian-language interface and input of fiat funds (dollars and rubles) through a bank card, Capitalist, Perfect Money, AdvCash, etc.

Asset selection

It is important to carefully consider which assets to work with. Cryptocurrencies are traded in pairs with each other or against fiat currencies - dollar, euro, etc. For example, on Binance, cryptocurrencies are bought and sold in relation to each other. For example, BTC/ETH – Bitcoin to Ethereum, TRX/LTC – Tron to Litecoin, etc. To start trading, you must first buy cryptocurrency and deposit it on the Binance exchange. To purchase cryptocurrency, you can use exchangers, but it is better for these purposes to register an account on the Russian crypto exchanges Livecoin or Exmo, where there are pairs of cryptocurrencies in relation to fiat.

It is better for beginners to start trading pairs where cryptocurrency is traded for fiat, since it is easier to control the situation with them, because the exchange rate of the dollar, ruble or euro never deviates as much as with cryptocurrencies. The range of exchange rate changes is called volatility, and digital assets have significantly higher volatility rates than fiat assets.

When using cryptocurrency or crypto-fiat pairs, keep in mind:

• if the asset coming first rises in price, then the pair grows;
• if the second asset falls in price, then the pair also rises.

Well, on the contrary, if the first currency weakens or the second strengthens, then the pair falls. For example, the BTC/ETH pair is Bitcoin to the dollar. If Bitcoin starts to rise in price, and ETH remains at approximately the same levels, then the BTCETH pair will rise. If Bitcoin does not fall or rise, but news came out due to which investors began to sell ETH, and the ether began to weaken, then the BTC/ETH pair will also rise.

Learning Theory

There is a strange opinion that it doesn’t take much intelligence to make money on the cryptocurrency exchange. It is important to understand that this statement is true in the mouth of an experienced trader, since there are no institutional major players in the cryptocurrency market yet, and asset prices are quite easy to predict based on technical and fundamental analysis due to the lack of manipulation.

If we take a beginner who knows nothing about trading, then for him this statement will be erroneous. Although many novice traders make good money using the most primitive strategies.

To make trading a source of profit, you will have to master a lot of material on the operation of financial markets, forecasting methods, etc. There are no freebies here and are not expected. Trading is hard work that requires effort, self-discipline, patience and a desire to constantly improve.

Pros and cons of trading:

• the average profitability of traders on crypto exchanges is from 100% per month, while on the stock exchange even 100% per year is a good indicator;
• a large number of actively moving instruments creates conditions for the emergence of profitable transactions every day;
• At first, it is difficult for beginners to understand the intricacies of trading, so they will have to spend a lot of time and money.

Adviсe:

• open a demo account, don’t start on real money right away;
• read the main works on technical analysis, for example, it is advisable to memorize Jack Schwager’s book “Technical Analysis”;
• track what news affects the growth of digital assets, for example, listing on a crypto exchange, launch of new technologies, rumors of partnership, raising money from large investors, etc.;
• never buy one asset with all your money, always divide your capital into several parts.

How to withdraw bitcoin

Through the exchange

This is a reliable withdrawal method, as exchanges have official documents for operating in the market. You can set the withdrawal rate in rubles, dollars and euros yourself. You can withdraw quite large amounts from exchanges, since the exchange reserve is sufficient for large transactions. Restrictions on the withdrawal amount are introduced only by payment systems. When withdrawing, additional commissions from 0 to 5% are charged.

How to withdraw money

• Register on an exchange (for example, exmo.me);
• Go through account verification;
• Create an account;

Now you can deposit, withdraw and exchange money! Here you can put up currency for auction and receive real money for bitcoins.

Exchangers

Exchangers are sites for exchanging money into different wallets. You can get all the information about exchange offices, compare conditions and get expert reviews at bestchange.ru. Here you can exchange bitcoins for rubles, invest in bitcoin from a Sberbank card, exchange bitcoin for Privat 24 and withdraw the amount to WebMoney.

We looked at all the ways to make money on cryptocurrency. You have learned all the details of playing on stock exchanges and the intricacies of investing in electronic money. Before investing your hard-earned money, conduct a brief analysis of the offers you like, compare rates and commissions on different exchanges.

Investing on a crypto exchange

The easiest way to answer the question of how to make money on the cryptocurrency exchange is to invest for the long term! Why is this method the easiest? Because the global trend of the cryptocurrency market is strictly upward! Yes, there are rollbacks, some projects fail, but if you divide the money between top assets, then future profits are guaranteed.

Long-term investments mean a deposit for more than 3 months. Accordingly, short-term investments involve purchases for a period of 1-3 months. How long-term investors act:

• First, they conduct an analysis based on the chosen strategy or seek help from analytical reports, preferably compiled by cryptocurrency hedge funds;
• they wait for the price to roll back against the main trend and buy a coin, often not for the entire allocated amount, but for a third or half;
• withdraw money from the exchange to a wallet to keep savings in a safe place;
• if the coin continues to fall, they buy more of it, averaging the position; if it goes up, then everything is fine, you can invest the remaining funds in another asset;
• the capital allocated for investment is divided among at least 5-10 different coins, diversifying risks.

One of the hedge funds shared the answer to the question of how to make money on the cryptocurrency exchange - the strategy is simple and effective. The algorithm of actions is as follows:

• the TOP 200 cryptocurrencies are covered by a moving average with a 230-day period;
• as soon as the daily candle on the chart closes above the moving average, it is bought and held for a year;
• After 12 months, the asset is sold, taking profit.

Long term pros and cons:

• this way of earning money is simple to the point of disgrace, and the essence comes down to “Buy and Hold”;
• profit from investment ranges from 100 to 1000 percent per year;
• There is still a risk that the purchased asset will turn out to be a dud and the money will be lost.

Short-term investing

This type of investing is similar to trading, but traders usually operate within a day or week, not leaving trades open for 1-3 months. So, how do short-term investors work and earn money on crypto exchanges?

Selecting assets for investment

To begin, select suitable assets. The search is based on news. Coins that are well suited for short-term investing are those that are undergoing an interesting hard fork, are preparing a listing, are awaiting the release of new software, are concluding agreements with large business representatives from the real economy sector, etc.

Then they decide how much money to allocate for investment from the available capital. It is advisable not to invest all the funds, but the share of promising currencies in the portfolio should be higher than that of ordinary ones, if such a word is applicable here at all.

Unlike a long-term investor who buys and forgets, an investor acting on a short-term basis must carefully monitor the rate of the selected assets and read news on them in order to liquidate the position ahead of schedule if something happens.

Pros and cons of short-term investing:

• the profitability of some cryptocurrencies reaches hundreds of percent in a month or two;
• the risk of making a mistake with the entry is high, so short-term investing is more dangerous than long-term investing;
• It is more difficult for beginners to start making money, since before purchasing they have to deal with a lot of factors that can affect the value of currencies.

Recommendations for trading

1. Do not trade the entire portfolio amount. Better find multiple currencies and invest evenly to trade.
2. Don't be nervous, follow the rules and don't make rash transactions. The order may not work immediately, but the next day. But in the end, within a month, you will receive your expected income.
3. Follow the news background of the cryptocurrency market.
4. Celebrate successful coins by adding them to your “Favourites” list. In future analyses, check this list first to make your search easier.
5. Don't trade based on signals. Often they have already come true, or you won’t have time to get out of the currency.
6. Do not go to currency pumps if you are not the organizer.
7. Don't forget about orders. Try not to leave orders overnight or for a long time to avoid the currency falling.
8. Always look at the volume of currency being traded. Do not enter the currency if the volume is less than 100 BTC per day.

Earning money through arbitrage

The price of the same asset often varies greatly across different trading platforms. Therefore, some people are interested in how to make money on the difference between cryptocurrency exchanges. The essence of the method comes down to the following.

For example, on Bitfinex the Bitcoin rate today is $7,220, and on Binance it is 6,900. Therefore, the trader buys BTC on Binance, transfers it to Bitcoin on Bitfinex, sells it there, for example, for Tether - a stablecoin pegged to the US dollar exchange rate, and then returns USDT to Binance, and repeats the operation.

You can sell crypto for fiat currency, for example, for the dollar, but this method is more difficult, since it is difficult to find the difference between crypto exchanges, where a digital asset can actually be sold for fiat, and then return the fiat to the starting point without losing part of the funds due to payment commissions for transfer and conversion.

Pros and cons of cryptocurrency arbitrage:

• profit on theory is guaranteed;
• the algorithm of actions is extremely simple;
• when making a transaction, there remains a risk that by the time the cryptocurrency reaches another exchange, the rate will change;
• Often a significant difference arises with small crypto exchanges, where it is risky to deposit money.

Deposits

Deposits are the lending of your funds to other participants in the system or the exchange itself. Naturally, the system automatically calculates the interest and repayment terms. There are both specialized sites on the market for these purposes, as well as crypto exchanges with such functionality.

There are a lot of options for making money for a participant in the crypto market; you just need to delve into the topic and see the opportunity in time. To use some, you need a financial reserve; others also waste time. Therefore, choose a convenient option for yourself and act.

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Trading with leverage

Trading using leverage, i.e. using a margin mechanism, has been introduced into a separate type. When it comes to talking about whether it is possible to earn money on a cryptocurrency exchange, this type of trading is not recommended for beginners due to the high risks.

What is the essence of margin trading? When using leverage, a trader opens a position with a size that exceeds his available cash, using borrowed funds from the broker. This allows you to make more profit if the forecast is correct, but also lose more money if it is incorrect.

For example, a trader has $1,000 at his disposal, and the value of ETH is $250. This means you can buy 4 ETH, wait until the ether grows and sell. If the price rises to $300, then the profit will be 4x50=$200. If the ETH rate does not rise, but falls, then the trader can close the position with a minus or wait until the rate rises. Even if the Ethereum price drops to $1, the trader will be able to hold the position since he owns 4 coins.

In the case of margin trading, things are different. If a trader uses a leverage of 1:10, then with $1000 he can buy not 4 ETH, but 40! If the price goes up and grows, for example, to $300, the profit on such a transaction will be 40x50=$2000!

However, if the price goes against the trader, then the loss, like the profit, will begin to grow much faster. Losing a thousand dollars will occur if the price of ETH falls from $250 to $225. Once the price drops to this level, the exchange will liquidate the trade and take $1,000 from the trader, who will be left with nothing.

Therefore, it is important to consider that along with an increase in risk potential, the risk of losses increases significantly.

Another important feature of margin trading is the opportunity to make money not only on growth, but also on decline. For example, if a trader sees that ETH is going to fall, then he opens a trade to reduce it. On his order, the broker sells a certain amount of ether at a fixed price. When, in accordance with the forecast, the price of ETH decreases, the trader closes the transaction, that is, he performs the reverse operation, buying ETH and giving it to the broker, and keeping the difference in value for himself.

Let's explain with an example. The trader has $1,000, 1:10 leverage, and sells ETH when Ether is $250. The broker, on the trader's orders, sells 40 ether coins for 10 thousand dollars at a price of 250. The rate drops to 200, and the trader decides to take profit. He closes the sale transaction, and at this moment the broker buys 40 ETH coins borrowed from him by the trader for 200 bucks, which is $8,000, giving the trader the difference with the initial proceeds of 10 thousand USD - $2,000 profit.

The problem would arise if the rate went up, then when the figure reached $300, the loss from the sell position with a leverage of 1:10 would be $1,000, which the exchange would write off from the trader’s account.

How traders involved in margin trading act:

• find an exchange that supports leverage trading, for example, Bitfinex;
• replenish the balance, select leverage and trade;
• When trading, it is important to correctly calculate where the margin levels are in order to understand where the deposit will be drained.

Pros and cons of margin trading:

• with the correct forecast, a very large profit;
• if the forecast is incorrect, the loss will be equally impressive.

Mining on your own equipment

Bitcoin mining using a PC was the very first, classic type of mining, which was very profitable at first. The essence of this work is to use the computing power of computers to maintain the functioning of cryptocurrency networks and receive rewards for miners in cryptocurrency. But if two or three years ago, any person with an ordinary home computer with a standard video card could earn bitcoins without investments, then with the growth of competition and the complexity of hashing, this type of activity became more and more technically complex, and most importantly, more expensive. Today, mining on your own equipment can bring more or less significant profit only to those who have the opportunity to buy a large number of powerful video cards or Asic miners on favorable terms (for example, order at a wholesale price in China), as well as to those who have access to free or cheap electricity. In all other cases, the venture will most likely turn out to be unprofitable. Disadvantages of classic mining:

• rapid wear of equipment due to increased loads;
• expensive repairs;
• high noise level (it is unlikely that you will be able to earn Bitcoin in a city apartment; you need to have a separate room or at least a separate room with good sound insulation);
• high electricity bills;
• the need for uninterrupted operation of the Internet (if it is disconnected, the process will have to be started again).

There are also advantages, but they are fewer:

• the opportunity to earn bitcoins on the machine;
• the ability to sell equipment at a discount at any time;
• the ability to select a cryptocurrency for mining.

If you do decide to purchase equipment, you should not count on quick and easy income. Yes, it used to be possible to earn Bitcoin in a day on a simple PC, but now a whole mining farm has to fight for that amount, and often for more than one month. And we must understand that the old times are unlikely to return.

Earnings from lending

Some crypto exchanges allow some clients to lend to others. As a rule, borrowed funds are taken for 2-3 days, although in some cases the loan is needed for 2-3 months. The amount of profit from such earnings is directly related to the chosen cryptocurrency. Typically, unpopular assets have a higher profit percentage than popular ones.

How investors act:

• buy cryptocurrency;
• as an option, they invest in some asset, immediately providing it on credit to traders;
• after the loan funds are returned, they receive a profit, and if the chosen crypt has grown by that time, then they also receive income from the growth.

Interest on the use of funds may be paid to the lender daily or at the end of the agreed period.

Pros and cons of cryptocurrency lending:

• average profit within 30% per annum;
• risks of non-return, which are reduced if the trader is a professional with a large amount of his own funds, and the cryptocurrency exchange is large and respected;
• this method of earning money is available to beginners who earn income without actually doing anything.

Is it possible to make money on cryptocurrency in 2022?

As you may have noticed, starting to make money on cryptocurrency is not at all difficult. The main thing is to choose one or more directions for yourself and thoroughly study the information. Especially if you are going to invest big.

In 2022, cryptocurrency remains a relevant tool for making money on the Internet, and its undeveloped nature still allows anyone who makes at least some effort to snatch a sweet piece of the pie. The risks here are varied. The most risk-free options are trading and all the ways to get Internet coins for free. There are huge risks in investing in cryptocurrency for a very long period, since there are no accurate forecasts yet of how the crypto industry will behave in the future.

Conclusion: you can make money on crypto in 2022.

How to earn money without investment

Some newcomers are interested in how to make money on the cryptocurrency exchange without investments. Unfortunately, there are no competitions with cash prizes like Forex brokers have on crypto exchanges. The easiest way to get money without investing is to participate in advertising airdrop and bounty campaigns, and use the coins received from projects for speculative trading or investing.

Some exchanges, for example, Yobit, distribute tokens for free every day. Of course, the cost of these coins is extremely low, but with their help you can practice trading, learning how to place limit orders, make market transactions, place take profits and stop losses.

General concepts about cryptocurrency

First, the basics for beginners. More experienced readers can skip this part and go to the instructions on how to choose an exchange to trade.

Cryptocurrency is a type of online currency that is protected by a cryptographic key. Such a currency is not subordinate to any state and is the international equivalent of conventional money. Such “coins” can be exchanged for regular rubles at exchange offices or on stock exchanges.

Anyone can get coins. If you are waiting for secrets or magical tools for making money, then there are none. There are only two rules for successful trading: resources and knowledge. The obvious advantage of this payment method is that such money cannot be counterfeited or printed in large quantities (which means that it is theoretically protected from depreciation).

ICO is a pre-sale exchange for new cryptocurrencies. Here investors invest in new types of money and receive profits if they are successful.

Bitcoin is a type of cryptocurrency. Unlike ordinary money, the principle of “electronic” money protects it from re-issuance, since technically the number of bitcoins cannot exceed 21 million.

Mining is the “creation” of coins on a computer using special programs. Literally from English “mining” cue balls. Now everyone can make money on cryptocurrency. In the article we will look at all the most popular ways to get cryptocurrency (even for free) and will dwell in more detail on making money on exchanges, we will figure out which exchange to choose for trading, where it is more profitable to earn money.

How to register on a crypto exchange

Many people are intimidated by crypto exchange sites, and the registration process seems very complicated. Because of this insignificant factor, some of those who want to make money on cryptocurrency exchanges do nothing. Therefore, we recommend that beginners first create an account on Livecoin.

To do this, go to the official website, which supports the Russian language, and click “Open a trading account.” After this, indicate your email, come up with a password, and then go to your mailbox and click on the activation link in the letter from the exchange.

Having done this, the user finds himself in his personal account on the Livecoin website. Here it is advisable to enable two-factor authentication to secure your funds. To do this, click on the warning message at the top “You have not activated account protection via Google 2-FA.” There they select security level 2 - advanced.

Then download the Google Authenticator application to your smartphone from Google Play or the App Store, launch it, click “+”, scan the QR code on the site and enter the numbers that will be displayed in the application.

After this, the protection is activated, and to enter the site you will need to provide an email, password and digital code from Google Authenticator, which is constantly changing.

Then all that remains is to select “Top up”, indicate your preferred currency - dollars, euros or rubles, opposite each of which there is also a “Top up” button. You can deposit fiat currencies on the Livecoin crypto exchange using Capitalist, Perfect Money, Payeer, AdvCash. After replenishing your account, you can use one or another method to work and earn money.

Results of consideration of earnings on crypto exchanges

If you ask how much they earn today on the cryptocurrency exchange, then according to the most conservative estimates, long-term investors earn about 1000% per annum. The main thing is not to rush and not to buy on the wave of hype when the market is at new heights, but to wait for the fall and form a portfolio. At the same time, you can learn trading, margin trading or arbitrage to make even more money.

After you try to make money using one method or another on cryptocurrency exchanges, be sure to share your experience with colleagues in the comments below to exchange opinions on the effectiveness of certain areas of work.

If you find an error, please select a piece of text and press Ctrl+Enter.

Top up your balance

First of all, we need to log into our account. It is important to note that when logging into your account, this exchange has a non-standard captcha - after you enter your data (mail and password), you will need to pull the slider to the place where the puzzle is inserted (drag the puzzle to the desired place with the mouse).

So, we logged into our account, like on many exchanges there is no way to top up the balance from cards or other payment systems. To do this, we need to add cryptocurrency to our balance. In the profile menu, click on the “Calculated cost” button. This displays the total amount of all your assets in Bitcoin equivalent.

After clicking, a window will open in which there are two buttons “Withdrawal” and “Deposit” opposite each coin. For example, you want to top up your account with bitcoins, respectively, in front of this currency, select the appropriate command.

After that, we see the address for replenishing the exchange balance, copy it and enter it where you are going to transfer bitcoins from (another exchange or exchanger).

If you do not have Bitcoin, you must first purchase it from another resource. For example, you can use Bestchange exchanger monitoring. Select your payment method on the left, Bitcoin on the right. Next, choose the most profitable site for this exchange direction from those offered, step by step fill in the necessary data and indicate your address to replenish the exchange balance.

You send funds and wait for crediting, depending on the exchanger’s regulations, on average it takes up to 30 minutes. Withdrawal of funds is carried out according to the same scheme, only now on Bestchange you select “Bitcoin” on the left, and your withdrawal method on the right.

Now you can start trading. To do this, go to the “Trade Center” (Exchange) tab. For new traders, it is preferable to choose the “Basic” trading center, since the “Advance” tab has a more complex interface.

On the right you will see a column with available trading pairs. Select the one that interests you. If you fund your account with Bitcoin or Ethereum, you will immediately have the opportunity to buy a large number of different cryptocurrencies.

Traders have 2 types of orders available:

• Limit.
• Market.

When placing a limit order (Limit), you need to enter the opening price, the amount of cryptocurrency and click on the “Buy” or “Sell” button.

During market trading (Market), only the field for indicating the amount of cryptocurrency will be available for filling. Additionally, by using the exchange's native token "BNB", you can save 50% on transaction fees. If you want to take advantage of this offer, buy BNB tokens with Bitcoin or Ethereum and use them to further trade on the platform.

When you select the pair you are interested in, click on it and enter the number of tokens you want to buy in the “Amount” column below the graph displaying price movements. After that, click “Buy” and confirm the action.

After purchasing a new cryptocurrency, you can find it in your wallet. Go to the “Asset” tab again, then click “Withdraw cash from deposit”, and find the cryptocurrency you just purchased. If necessary, click on the “Withdraw” button and withdraw funds to your own wallet or another cryptocurrency exchange.

Advice for novice investors

Experienced traders claim that trading on a crypto exchange is easier than on the foreign exchange and stock markets. But that’s why they are experienced traders. And for a beginner, even if this is really the case, at first it will be difficult to figure everything out. Therefore, it would be useful to listen to a few tips:

• Do not invest your entire investment in one currency. It is better to use several tools at the same time. This will allow you to save at least part of your funds in the event of an unsuccessful placement.
• Choose your exchange carefully. Pay attention to the transactions carried out, the average price level and commissions.
• Mark successful currencies and do not lose sight of them. Perhaps they will be included in the TOP of the best. Next time you search, check them first.
• Develop your own behavior strategy. Do not be influenced by the general sentiment of the exchange, it may be erroneous or act on the decline of the wave.
• React calmly to all changes. Try to avoid impulsive actions. Even after a sharp drop, the price will rise again over time. And if you sell coins at the lower peak, you will no longer be able to recoup your costs.
• Keep a close eye on news from the cryptocurrency space. Note the premises. If you only follow the signals, you may miss the wave. Because usually they are already at the decline of the peak.
• Do not use credit money unless you have good experience and the necessary knowledge.

Cryptocurrency is a new tool that, if used correctly, will help you make good capital. But a crypto exchange is not a casino where you can hope for your luck. Only careful work, a responsible approach and composure will help you achieve the desired income.

It is best, before starting real trading, to study relevant literature, practice using a demo account and see how the exchange works in dynamics. This will allow you to delve a little into the process without risking real money.

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Choosing a cryptocurrency exchange

Another important point is the choice of exchange for trading. Considering that they all have some differences in the type of operations performed and quotes. Of course, every investor or trader wants to find the ideal option, because the quality of his future work depends on this. Therefore, when choosing an exchange, you should pay attention to the following points:

• General opinion of users about the exchange . Of course, reviews can also be custom-made. But if all users write negative comments about the exchange, this is a reason to at least think about it and study the resource more carefully.
• Amount of commissions and fees . Some services treat their users loyally and set adequate commissions. Others, on the contrary, withdraw money for all operations. A trader should first calculate whether the transactions carried out will pay off, taking into account commissions.
• List of available operations . As mentioned above, the exchange may limit the list of actions with cryptocurrency. For example, work only with digital coins without the ability to exchange them for world currency.
• Verification . Responsible and large resources can extend the verification procedure for several days, requesting additional data. Many traders, not wanting to waste time, are looking for more “accommodating” markets. But in fact, such a thorough verification procedure indicates the high reliability of the resource, so it is better to wait a little, but be confident in the safety of your funds.
• Regional restrictions . Also not uncommon among cryptocurrency exchanges. Before starting work, you should make sure that the exchange operates in the trader’s country. And it’s even better if it supports other languages ​​(Russian, etc.). This will greatly facilitate the further work process.

Having chosen the best option for himself, taking into account the criteria stated above, the trader should register and go through the verification procedure. Immediately after this, you can top up your account and start trading. Let's take a closer look at how the trading process occurs on a crypto exchange.

Top 3 cryptocurrency exchanges

1. Binance is the leader in global trading volume. Attractively low commission - 0.1%. Supports almost all popular cryptocurrencies and has a large set of tools for analytics and trading.
2. EXMO is the largest Russian-language cryptocurrency exchange. It also has a low commission - only 0.2%. Very fast transfers within the network, just a few seconds.
3. BitMEX is another largest crypto exchange. Works only with cryptocurrency, does not support fiat. There is no mandatory verification.

Cryptocurrency extraction using mining

One of the most common and stable ways to earn money since the advent of cryptocurrencies is mining, which is the extraction of cryptocurrencies using special equipment. If you want to learn more about how mining works, watch this video.

In short, mining is the process of creating digital currencies. Since the emission of cryptocurrency is not regulated by anyone, anyone can mine coins using even the simplest mining farm.

This is what a simple mining farm looks like for 250,000 rubles, consisting of four GeForce 1080 Ti video cards with a memory capacity of 11 GB each

Disadvantages : to organize your own mining farm you will have to spend money on equipment and subsequently pay all the costs associated with its maintenance. The mining process is labor-intensive and expensive.

Pros : The number of crypto coins mined is limited only by the size of your farm. The more you invest in equipment initially, the higher your income will be.

Trading process step by step

Contrary to logic, on a crypto exchange it makes sense to invest in a currency that has fallen in value. This will make it easier to recoup costs, since the currency will rise in price again over time, but it will take much more time to break through the ceiling.

Let's look at one of the trading schemes step by step:

1. We go to the exchange and set a filter, selecting pairs with a negative change in price.
2. For selected pairs, we calculate volatility over 24 hours. This is done as follows: divide the value of the “High” indicator by the value of the “Low” indicator, and subtract 100 from the resulting number. Currencies with a value of more than 10% are of interest.
3. We look at the chart of a suitable currency in dynamics. The following points are of interest: the price of the currency from the very beginning (it is necessary to exclude the price peak), the dynamics of changes in exchange rates for 1-3 months (in general, the movement should be direct or upward), the change in price by day and the duration of the jumps (if the price of the currency regularly exceeds the current the cost is at least 5-7%, then this is a good option).
4. We place an order to buy currency. In this case, you can set the price limit slightly lower than the current one.
5. We wait for the price of the currency to rise, and with the sale we receive our well-deserved profit (on average 5% minus commissions and fees).