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 way for you to prepare to trade and sell Bitcoin and other type of cryptocurrency.
You need to start by choosing a cryptocurrency exchange. There exist several of those, each with their 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 in any exchange you may be considering. You need to go for one with favorable fees to it. You will make the most money where they allow multiple coins. There is also the security issue. 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.
It shall thus be time 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. The best place has always been your personal wallet. You need to take care of that private key. 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 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 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 options that allow you to use your credit card or bank account to make the buy. There shall be the option to move it to your personal wallet or the one at the larger exchange.
You are now 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 shall minimize your losses in case the trade goes sour.
Never trade with amounts you cannot afford to lose. There are risks in investing. This market has the ups and downs of other markets. This calls for caution in how much you choose to trade with.
There are articles on this site you can refer to for investment advice.