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 mystery also adds to the confusion many of them express. Here is where you shall learn how to trade and sell Bitcoin and other kinds of cryptocurrency.
You need to start by choosing a cryptocurrency exchange. There are many out there, each with its pros and cons. You need to assess them in terms of fees and purchase options, supported coins, security, as well as liquidity. These are important in any exchange you may be considering. It is important you get one with favorable fees. You will make the most money where they allow multiple coins. There is also the security issue. 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 is where you will jeep your cryptocurrency safe. 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. You need to be keen on the security of your private key. It allows you to transact safely. You need to keep any amounts you do not wish to trade with, in the offline storage. 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. There are hardware storage options for you to go with. You can find out more about them here.
You should now proceed to buy your first Bitcoin. You need to first fund your wallet. There are many ways you can do so. There are ways you can use your credit card or bank account to make the purchase. 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 should have a plan on how you will 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. If the trade does not work out, you will have lost very little.
You need to only trade with an amount you can afford to lose. Investing always comes with plenty of risks. The cryptocurrency faces the ups and downs to trading markets as well. You need to keep the trading amounts conservative.
You can read more info about investing in this site.