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. Most of them are however not conversant with it to know where to start. 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 start by choosing a cryptocurrency exchange. There exist several of those, each with their pros and cons. You need to gauge them through the parameters of 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. You will make the most money where they allow multiple coins. 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 should then 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. You need to be keen on the security of your private key. It allows you to transact safely. Any amount you have no use in the trade should go to the offline storage. You need to then keep that info secure at all times. If you lose that offline info, you will have lost a huge investment permanently. There are hardware wallets for such scenarios. 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 many ways you can do so. You can even buy Bitcoin using your credit card or bank account. There shall be the option to move it to your personal wallet or the one at the 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. If the trade does not work out, you will have lost very little.
Never trade with amounts you cannot afford to lose. Investing always comes with plenty of risks. The ups and downs common in other markets are here as well. You need to keep the trading amounts conservative.
You can read more info about investing in this site.