It's a way for us to gauge where your level is, and ultimately you decide your own level. There are 10 questions in each level.
Glossika's placement test is a "listening comprehension test". Many learners can understand more than they can actually speak. And what you should really do is determine at what level you're comfortable speaking at and start from there. So, if you feel that you understand but cannot say a sentence fluently or that you're a complete beginner, we recommend to exit the placement test and start from that level.