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 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 first select 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 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 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.
You then need 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 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 should then keep such info secure at all times. Losing off-line keys of a Bitcoin means losing it irreversibly. You will find hardware wallets for such storage. You can click here to find out more about them.
You need to now go ahead and buy your first Bitcoin. This shall be possible once you fund your wallet. There are several options to this. There are ways you can use your credit card or bank account to make the purchase. 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 intend to do so, and the discipline to do so. 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.
You should always keep the investments to figures you can afford to lose. There are risks in investing. This market has the ups and downs of other markets. This calls for caution in how much you choose to trade with.
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