Where to Start when you Wish to Invest in Cryptocurrency
Cryptocurrencies have grown in value in recent times. There are more investors keen in getting in on this market. Most of them are however not conversant with it to know where to start. 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 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. There is also the security issue. 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.
You should then 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. You need to take care of that private key. It is the means for you to transact safely. Any amount you have no use in the trade should go to the offline storage. You need to then keep that info secure at all times. Losing off-line keys of a Bitcoin means losing it irreversibly. 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 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 are now ready to trade and sell Bitcoin. You need a good plan to do so, and the discipline to see it through. You need to stick to trading not more than 5% of what you have per a single investment. This shall minimize your losses in case the trade goes sour.
Never trade with amounts you cannot afford to lose. There is always risk in investment. The ups and downs common in other markets are here as well. You need to watch how much you are dealing with.
You shall find more investment advice on this site.
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