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. Most of them are however not conversant with it to know where to start. Its mystery also adds to the confusion many of them express. Here is a guide that shall help you learn how to trade in Bitcoin and other forms of cryptocurrencies.
You will first of all need to get 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 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 supported coins, the better the returns you shall realize. There is also the security issue. 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.
It shall thus be time 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. The best place to give you the security you need is your wallet. It is important to always keep your private key secure. It allows you to transact safely. Any amount you have no use in the trade should go to the offline storage. This should be followed with keeping that info secure at all times. Losing off-line keys of a Bitcoin means losing it irreversibly. There are hardware wallets for such scenarios. You can find more info on them here.
This shall now be time to buy your first Bitcoin. You need to first fund your wallet. There are many ways you can do so. 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 shall thus be ready to trade and sell 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. This shall minimize your losses in case the trade goes sour.
You should always keep the investments to figures you can afford to lose. There is always risk in investment. The cryptocurrency faces the ups and downs to trading markets as well. This calls for caution in how much you choose to trade with.
You shall find more investment advice on this site.
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