Where to Start when you Wish to Invest in Cryptocurrency
Cryptocurrencies have become more popular, thus increasing in value. There are more investors keen in getting in on this market. Not many of the however know how to go about it. Its unique characteristics add to the confusion of how to trade and sell it. Here is where you shall learn how to trade and sell Bitcoin and other kinds of cryptocurrency.
You will first of all need to get a cryptocurrency exchange. There are many out there, each with its 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 in any exchange you may be considering. You need to land one with favorable fees applied. 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. There is no better place to keep 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. The best place has always been your personal wallet. It is important to always keep your private key secure. It is the means for you to transact safely. All the amounts you do not intend to trade with should be stored offline. This should be followed with keeping that info secure at all times. If you lose that offline info, you will have lost a huge investment permanently. You will find hardware wallets for such storage. You can find more info on them here.
This shall now be time to buy your first Bitcoin. You can do so after funding your wallet. There are several options to this. There are options that allow you to use your credit card or bank account to make the buy. There shall be the option to move it to your personal wallet or the one at the larger exchange.
You can so far go into selling and trading Bitcoin. You need a good plan to do so, and the discipline to see it through. A good habit to adopt is never trading more than 5% of your total stock in one investment move. This shall minimize your losses in case the trade goes sour.
You need to only trade with an amount you can afford to lose. There is always risk in investment. The cryptocurrency faces the ups and downs to trading markets as well. You need to watch how much you are dealing with.
There are articles on this site you can refer to for investment advice.