Where to Start when you Wish to Invest in Cryptocurrency
Cryptocurrencies have grown in value in recent times. This has made many investors gain interest in this new market. But most of them have no idea where to start. Its unique characteristics add to the confusion of how to trade and sell it. Here is a way for you to prepare to trade and sell Bitcoin and other type of cryptocurrency.
You will first of all need to get a cryptocurrency exchange. There are plenty of them out there, each with certain advantages and disadvantages. You need to analyze them by considering 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. You need to go for one with favorable fees to it. You will make the most money where they allow multiple coins. The security is also critical. You should only go where they take security seriously, with things like secure passwords, two-factor authentication, offline cold storage for most of your funds, and professional grade encryption in place.
It shall thus be time to create a wallet. This shall enable the safe storage of your cryptocurrency. There is always a provisional wallet at your chosen exchange, but you should not leave your currency in there for too long. Storing it in your wallet is the only way you can be sure of security. It is important to always keep your private key secure. That is what you use 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. Losing off-line keys of a Bitcoin means losing it irreversibly. 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 choices you can make in this. You can even buy Bitcoin using your credit card or bank account. You need to then move them to your personal wallet or trading wallet at a larger exchange.
You are now ready to trade and sell Bitcoin. You should have a plan on how you intend to do so, and the discipline to do so. A good habit to adopt is never trading more than 5% of your total stock in one investment move. This is how you keep your losses down should there be a poor trade.
Never trade with amounts you cannot afford to lose. There are risks in investing. The cryptocurrency faces the ups and downs to trading markets as well. You need to keep the trading amounts conservative.
There are articles on this site you can refer to for investment advice.