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. Not many of the however know how to go about it. 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 gauge them through the parameters of their fees and purchase options, supported coins, security, as well as liquidity. These are critical to any exchange you are contemplating. You need to go for one with favorable fees to it. You will make the most money where they allow multiple coins. Security is an important factor. 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. It is important to always keep your private key secure. That is what you use to transact safely. You need to keep any amounts you do not wish to trade with, in the offline storage. You should then keep such 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 click here to find out more about them.
This shall now be time to buy your first Bitcoin. This shall be possible once you 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. You need to then move them to your personal wallet or trading wallet at a larger exchange.
You shall thus be ready to trade and sell Bitcoin. You should have a plan on how you intend to do so, and the discipline to do so. You need to stick to trading not more than 5% of what you have per a single investment. If the trade does not work out, you will have lost very little.
Never trade with amounts you cannot afford to lose. There are risks in investing. 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.