Where to Start when you Wish to Invest in Cryptocurrency
The popularity that cryptocurrencies enjoy presently has made the highly desirable and valuable. This has raised the number of interested investors in the market. Not many of the however know how to go about it. Its mystery also adds to the confusion many of them express. 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 are plenty of them out there, each with certain advantages and disadvantages. 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. The more the coins trading there, the better the chances of making profits. Security is an important factor. You should only go where they take security seriously, with things like secure passwords, two-factor authentication, offline cold storage for most of your funds, and professional grade encryption in place.
You should then 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 has always been your personal wallet. It is important to always keep your private key secure. That is what you use to transact safely. All the amounts you do not intend to trade with should be stored offline. 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. 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 need to then move them to your personal wallet or trading wallet at a larger exchange.
You can so far go into selling and trading Bitcoin. You need a good plan to 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. If the trade does not work out, you will have lost very little.
You need to only trade with an amount you can afford to lose. There are risks in investing. The ups and downs common in other markets are here as well. This calls for caution in how much you choose to trade with.
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