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. But most of them have no idea 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 are many out there, each with its pros and cons. 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 land one with favorable fees applied. The more the supported coins, the better the returns you shall realize. The security is also critical. 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. 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. 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 wallets for such scenarios. You can find out more about them here.
This shall now be time to buy your first Bitcoin. This shall be possible once you fund your wallet. There are choices you can make in this. You can even buy Bitcoin using your credit card or bank account. There shall be the option to move it to your personal wallet or the one at the 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 need to stick to trading not more than 5% of what you have per a single investment. This is how you keep your losses down should there be a poor trade.
You need to only trade with an amount you can afford to lose. There is always risk in investment. This market has the ups and downs of other markets. You need to watch how much you are dealing with.
There are articles on this site you can refer to for investment advice.