Where to Start when you Wish to Invest 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 unique characteristics add to the confusion of how to trade and sell it. Here is a way for you to prepare to trade and sell Bitcoin and other type 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 important factor when it comes to any exchange you wish to use. You need to land one with favorable fees applied. The more the coins trading there, the better the chances of making profits. The security is also critical. 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 should then create a wallet. There is no better place to keep 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. It allows you to transact safely. All the amounts you do not intend to trade with should be stored offline. You should then keep such info secure at all times. Should you lose the offline info, you will have permanently lost all that Bitcoin. You will find hardware wallets for such storage. You can find out more about them here.
You should now proceed to 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 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. If the trade does not work out, you will have lost very little.
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 watch how much you are dealing with.
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