The cryptocurrency shows high returns. For example, last year the level of Bitcoin doubled in 2 months, and this is not a record. You can earn on the cryptocurrency exchange through investments and reselling. Investing is an area that is clear and transparent. Reselling, on the other hand, is the main type of cryptocurrency work on the market. Traders tend to buy the asset at a lower price and sell it at a higher price.

Experts recommend for new traders of the cryptocurrency market to trade with cryptocurrency pairs, which have a high activity of buy and sell offers. The level of demand gives the probability that the buyer will not wait and the rate will not show strong fluctuations. Working with rate hikes is a high return, but also a high risk.

Cryptocurrencies are exchanged by means of a trading terminal, where purchase and sale orders are formed. After the price changes of the assets in the pair, you can sell the asset. And the price difference is your income. You can make the most profit when the rate is at its maximum peak. Beginning traders are advised to invest a small budget. It is also worth to be very selective in choosing a stock exchange.

Difficulties and weaknesses of a cryptocurrency exchange

Cryptocurrency exchange and this type of activity has its own disadvantages and risks:

• It is the support of the legislation of the country. In many states, the government and the banking system do not recognize cryptocurrency, and therefore cannot protect against fraud.
• The cryptocurrency market is highly susceptible to collapses and strong declines in quotes. Diversify your money into different assets, and invest only the amount you can sacrifice without much consequence.
• The unreliability of some currencies that appear on the market: fast and large-scale cryptocurrency projects often work as a “bubble effect,” luring money away from depositors. When choosing an asset on a cryptocurrency exchange, focus on those currencies that have been on the market longer and have the most popularity.

Working with a cryptocurrency exchange requires learning the tools, financial literacy, and understanding of market processes. A trader should be patient, have a calm and cool mind. It is worth having a certain amount of money that you are willing to invest without consequences for your personal budget. Cryptocurrencies today are a very profitable asset, and the number of currencies and projects is only growing every day. Therefore, this market is optimal for studying and testing your own forces in additional earnings and profits.