Where to Start when you Wish to Invest in Cryptocurrency
Cryptocurrencies have grown in value in recent times. 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 way for you to prepare to trade and sell Bitcoin and other type 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 important in any exchange you may be considering. It is important you get one with favorable fees. 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 then need to create a wallet. This is where you will jeep your cryptocurrency safe. 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. You need to take care of that private key. It is the means for 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. Should you lose the offline info, you will have permanently lost all that Bitcoin. There are hardware storage options for you to go with. You can find out more about them here.
This shall now be time to buy your first Bitcoin. You need to first fund your wallet. There are choices you can make in this. There are ways you can use your credit card or bank account to make the purchase. You can then move them to your personal wallet of the trading wallet at a larger exchange.
You shall thus be ready to trade and sell Bitcoin. You should have a plan on how you will 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. There are risks in investing. The ups and downs common in other markets are here as well. You need to keep the trading amounts conservative.
There are articles on this site you can refer to for investment advice.