Where to Start when you Wish to Invest in Cryptocurrency
Cryptocurrencies have grown in value in recent times. This has raised the number of interested investors in the 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 start by choosing a cryptocurrency exchange. There exist several of those, each with their 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. The security is also critical. You should see the implementation of powerful security features, like secure passwords, two-factor authentication, offline cold storage for most of your funds, and professional grade encryption.
You should then 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. The best place has always been your personal wallet. It is important to always keep your private key secure. It allows you to transact safely. Any amount you have no use in the trade should go to the offline storage. You should then keep such 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 need to now go ahead and buy your first Bitcoin. This shall be possible once you fund your wallet. There are several options to this. 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 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.
Never trade with amounts you cannot 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.
You shall find more investment advice on this site.