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 will first of all need to get 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. You need to go for one with favorable fees to it. The more the supported coins, the better the returns you shall realize. 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 is where you will jeep your cryptocurrency safe. 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. It is important to always keep your private key secure. That is what you use to transact safely. Any amount you have no use in the trade should go to the offline storage. This should be followed with keeping that 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.
You should now proceed to buy your first Bitcoin. You can do so after funding your wallet. There are several options to this. There are options that allow you to use your credit card or bank account to make the buy. You need to then move them to your personal wallet or trading wallet at a larger exchange.
You are now 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. The ups and downs common in other markets are here as well. You need to keep the trading amounts conservative.
You shall find more investment advice on this site.