All currently known cryptocurrency exchanges stand apart from conventional exchanges, as they do not have a full license. Nevertheless, this does not in any way interfere with carrying out financial transactions on them, buying a certain virtual currency, reselling it, playing on the difference in rates. A lot of people make money on exchanges and figured out their system of work. Top cryptocurrency exchanges topped the bitcoin exchange, but there are many other, less famous platforms that can also work profitably, make a profit, help carry out financial transactions.
At the moment, large representatives of the cryptocurrency world have already begun to resemble classic exchanges: they allow you to conduct margin transactions, issue loans and much more.
Features of work on online exchanges that beginners should pay attention to:
- Sites that conduct financial transactions do not always have reliable protection against fraudsters, and accordingly, they cannot always protect you from loss of savings.
- There are also legal nuances of conducting large transactions, which it is better to familiarize yourself with.
- There are one-day exchanges that work for a rather short time, but they can carry out normal transactions … The only thing is that you need to withdraw your own funds from such sites on time before they are closed. It is better to choose stable services included in the best cryptocurrency exchanges on the market.
Earnings on cryptocurrency exchanges
For any transaction, a person initially needs to have a certain amount of cryptocurrency at his disposal. After the purchase, it should be entered on the selected exchange and sold or exchanged for another currency at a favorable exchange rate. After the success and rapid growth of bitcoin (BTC) in 2013, this type of income has become quite popular, but it has a significant drawback – it is impossible to predict the exchange rate and the difference in the value of currencies, at any moment they can cease to exist altogether. In addition, all cryptocurrency exchanges charge a small percentage for conducting monetary transactions.
The rate of crypto and fiat currencies is constantly changing, so anyone can follow the trends based on the data and charts provided on the platform itself. Cryptocurrency exchanges openly provide tables with a list of currencies, reports on transactions and operations performed. Having an analytical mind, it is quite possible to track trends and algorithms of currency movement, although, of course, unexpected ups and downs occur.
There are some basic tips to follow when trading on a cryptocurrency exchange:
- Control the amount of all currencies of a given type in circulation.
- Pay attention to how the dynamics of the volume of currency in circulation changes relative to the total amount (for example, Bitcoin – 21 million units, Litecoin – 84 million units).
- Pay attention to the number of transactions per day / week / month on a particular exchange compared to others (transaction amounts are indicated in crypto or in USD).
Best cryptocurrency exchanges
If we talk about top crypto exchanges , then until recently the leader was BTC China and other sites registered in China. However, after a number of laws to control foreign exchange transactions on such resources, their popularity has declined significantly. At the moment, there are many different exchanges, for example:
- Bter and others.
Popular cryptocurrency exchanges represent the most famous types of crypto and fiat currencies such as Bitcoin BTC, Litecoin LTC, CNY and many others.