Where to Start when you Wish to Invest in Cryptocurrency
The popularity that cryptocurrencies enjoy presently has made the highly desirable and valuable. This has raised the number of interested investors in the market. Not many of the however know how to go about it. It is also something that raises a lot of questions on its nature. Here is a guide that shall help you learn how to trade in Bitcoin and other forms of cryptocurrencies.
You need to first select a cryptocurrency exchange. There exist several of those, each with their pros and cons. You need to gauge them through the parameters of their fees and purchase options, supported coins, security, as well as liquidity. These are important factor when it comes to any exchange you wish to use. It is important you get one with favorable fees. You will make the most money where they allow multiple coins. Security is an important factor. You need to see some strong measures in place, such as secure passwords, two-factor authentication, offline cold storage for most of your funds, and professional grade encryption.
You then need to create a wallet. This shall enable the safe storage of your cryptocurrency. You shall find a provisional wallet at your chosen exchange, but it is not a wise move to leave your currency in there. Storing it in your wallet is the only way you can be sure of security. You need to be keen on the security of your private key. It allows you to transact safely. Any amount you have no use in the trade should go to the offline storage. You should then keep such info secure at all times. Losing off-line keys of a Bitcoin means losing it irreversibly. There are hardware wallets for such scenarios. You can click here to find out more about them.
You need to now go ahead and buy your first Bitcoin. You can do so after funding your wallet. There are choices you can make in this. You can even buy Bitcoin using your credit card or bank account. You can then move them to your personal wallet of the trading wallet at a larger exchange.
You shall thus be ready to trade and sell Bitcoin. You need a good plan to do so, and the discipline to see it through. You may, for instance, avoid the temptation to put more than 5% of your total portfolio on a single investment. If the trade does not work out, you will have lost very little.
You should always keep the investments to figures you can afford to lose. There is always risk in investment. The ups and downs common in other markets are here as well. You need to keep the trading amounts conservative.
There are articles on this site you can refer to for investment advice.