Where to Start when you Wish to Invest in Cryptocurrency
Cryptocurrencies have grown in value in recent times. This has made many investors gain interest in this new market. But most of them have no idea where to start. 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 first select a cryptocurrency exchange. There are many out there, each with its 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 land one with favorable fees applied. The more the supported coins, the better the returns you shall realize. There is also the security issue. You need to see some strong measures in place, such as secure passwords, two-factor authentication, offline cold storage for most of your funds, and professional grade encryption.
You then need to create a wallet. There is no better place to keep your cryptocurrency. You shall find a provisional wallet at your chosen exchange, but it is not a wise move to leave your currency in there. 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. This should be followed with keeping that info secure at all times. Should you lose the offline info, you will have permanently lost all that Bitcoin. There are hardware wallets for such scenarios. You can click here to find out more about them.
You should now proceed to buy your first Bitcoin. You need to first fund your wallet. There are several options to this. 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 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 shall minimize your losses in case the trade goes sour.
Never trade with amounts you cannot afford to lose. There is always risk in investment. This market has the ups and downs of other markets. You need to keep the trading amounts conservative.
There are articles on this site you can refer to for investment advice.
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