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How to Trade in Cryptocurrency
Cryptocurrencies have become more popular, thus increasing in value. This has raised the number of interested investors in the 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 analyze them by considering their fees and purchase options, supported coins, security, as well as liquidity. These are critical to any exchange you are contemplating. 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 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 to give you the security you need is your wallet. You need to take care of that private key. It allows you to transact safely. All the amounts you do not intend to trade with should be stored offline. This should be followed with keeping that info secure at all times. Losing off-line keys of a Bitcoin means losing it irreversibly. There are hardware wallets for such scenarios. 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 many ways you can do so. There are ways you can use your credit card or bank account to make the purchase. You can then move them to your personal wallet of the trading wallet at a larger exchange.
You can so far go into selling and trading Bitcoin. You should have a plan on how you will 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 shall minimize your losses in case the trade goes sour.
You need to only trade with an amount you can afford to lose. Investing always comes with plenty of risks. The ups and downs common in other markets are here as well. 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.