Where to Start when you Wish to Invest in Cryptocurrency
Cryptocurrencies have become more popular, thus increasing in value. There are more investors keen in getting in on this 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 way for you to prepare to trade and sell Bitcoin and other type of cryptocurrency.
You will first of all need to get a cryptocurrency exchange. There are plenty of them out there, each with certain advantages and disadvantages. 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 go for one with favorable fees to it. The more the coins trading there, the better the chances of making profits. Security is an important factor. 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 then need to 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. That is what you use 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 more info on them here.
This shall now be time to buy your first Bitcoin. This shall be possible once you fund your wallet. There are several options to this. You can even buy Bitcoin using your credit card or bank account. You can then move them to your personal wallet of the trading wallet at a larger exchange.
You are now ready to trade and sell Bitcoin. You should have a plan on how you will do so, and the discipline to see it through. A good habit to adopt is never trading more than 5% of your total stock in one investment move. This is how you keep your losses down should there be a poor trade.
You should always keep the investments to figures you can 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.