How to Trade in Cryptocurrency
The popularity that cryptocurrencies enjoy presently has made the highly desirable and valuable. This has made many investors gain interest in this new market. But most of them have no idea where to start. Its mystery also adds to the confusion many of them express. Here is where you shall learn how to trade and sell Bitcoin and other kinds of cryptocurrency.
You will first of all need to get a cryptocurrency exchange. There are many out there, each with its pros and cons. You need to analyze them by considering 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 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.
It shall thus be time to create a wallet. There is no better place to keep your cryptocurrency. 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. It is important to always keep your private key secure. It is the means for 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 storage options for you to go with. You can find more info on them here.
You need to now go ahead and buy your first Bitcoin. You can do so after funding your wallet. There are many ways you can do so. There are options that allow you to use your credit card or bank account to make the buy. You can then move them to your personal wallet of the trading wallet at a larger exchange.
You can so far go into selling and trading Bitcoin. You should have a plan on how you intend to do so, and the discipline to do so. You may, for instance, avoid the temptation to put more than 5% of your total portfolio on a single investment. This is how you keep your losses down should there be a poor trade.
Never trade with amounts you cannot afford to lose. There are risks in investing. The cryptocurrency faces the ups and downs to trading markets as well. You need to watch how much you are dealing with.
There are articles on this site you can refer to for investment advice.