Read the RIA MO article to learn how to take your first steps in crypto trading using centralized and decentralized exchange tools.
How to make money on the cryptocurrency market
Bitcoin has been breaking records for the last three months and on January 20 reached a new historical maximum of $109,000. Investors are hoping for a new round of growth and more records. But even now, those who have not yet managed to buy bitcoins have the opportunity to earn money. Modern tools on crypto exchanges, such as automated bots, copy trading and signal trading, allow you to earn income even in a falling or stagnant market. And you don’t need to be an expert in trading and cryptocurrencies to do this.
The cryptocurrency market remains a place where henan mobile number database everyone can make money, from beginners to experienced investors. The main thing is to carefully approach the first step: study the basic principles of trading, choose a platform for trading, understand the available tools and clearly define your goals. By starting small and acting consciously, even in a volatile market, you can find opportunities for successful transactions and long-term growth.
Which exchange to choose: centralized (CEX) or decentralized (DEX)
Before you start trading, it is important to decide on the platform you choose: centralized (CEX) or decentralized (DEX). The main difference between DEX and CEX is the principle of storing cryptocurrencies.
Decentralized exchanges (DEX) provide complete independence, as funds remain in users’ personal wallets, and transactions are made through smart contracts. The principle “not your keys, not your bitcoins” is fully respected, which makes DEX attractive to those who value privacy and security. However, smart contracts that ensure the operation of DEX can be vulnerable and have flaws in the code, which can be exploited by fraudsters.
Centralized exchanges (CEX), on the contrary, require the transfer of assets to their wallets, which deprives the user of direct control. However, exchanges aimed at long-term work value reputation, and therefore take a responsible approach to the issue of storing user funds. Moreover, after the collapse of the FTX crypto exchange in 2022, the largest trading platforms began to publish reports on solvency - Proof-of-Reserve.