Where to Start when you Wish to Invest in Cryptocurrency
Cryptocurrencies have become more popular, thus increasing in value. This has made many investors gain interest in this new 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 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 critical to any exchange you are contemplating. It is important you get one with favorable fees. The more the coins trading there, the better the chances of making profits. The security is also critical. 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.
It shall thus be time to create a wallet. This shall enable the safe storage of your cryptocurrency. As much as there is a provisional wallet when you pick an exchange, this does not mean you leave your currency in there. The best place has always been your personal wallet. 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 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 find more info on them here.
You need to now go ahead and buy your first Bitcoin. You need to first fund your wallet. There are choices you can make in this. 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. A good habit to adopt is never trading more than 5% of your total stock in one investment move. 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. The cryptocurrency faces the ups and downs to trading markets as well. You need to watch how much you are dealing with.
There are articles on this site you can refer to for investment advice.