How to Trade in Cryptocurrency
The popularity that cryptocurrencies enjoy presently has made the highly desirable and valuable. There are more investors keen in getting in on this market. Most of them are however not conversant with it to know where to start. It is also something that raises a lot of questions on its nature. 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 are plenty of them out there, each with certain advantages and disadvantages. You need to gauge them through the parameters of their fees and purchase options, supported coins, security, as well as liquidity. These are important in any exchange you may be considering. You need to land one with favorable fees applied. The more the supported coins, the better the returns you shall realize. The security is also critical. 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.
It shall thus be time to create a wallet. This shall enable the safe storage of 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 to give you the security you need is your wallet. You need to take care of that private key. It allows you to transact safely. You need to keep any amounts you do not wish to trade with, in the offline storage. You should then keep such info secure at all times. If you lose that offline info, you will have lost a huge investment permanently. You will find hardware wallets for such storage. 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 many ways you can do so. You can even buy Bitcoin using your credit card or bank account. You need to then move them to your personal wallet or trading wallet at a larger exchange.
You can so far go into selling and trading Bitcoin. You need a good plan to do so, and the discipline to see it through. 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.
You need to only trade with an amount you can afford to lose. There is always risk in investment. This market has the ups and downs of other markets. You need to keep the trading amounts conservative.
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