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. But most of them have no idea where to start. 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 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. 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. 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 take care of that private key. It is the means for you to transact safely. You need to keep any amounts you do not wish to trade with, in the offline storage. You need to then keep that info secure at all times. Should you lose the offline info, you will have permanently lost all that Bitcoin. You will find hardware wallets for such storage. You can find more info on 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. 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 are now 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. 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. Investing always comes with plenty of risks. This market has the ups and downs of other markets. This calls for caution in how much you choose to trade with.
You shall find more investment advice on this site.