How to Trade in Cryptocurrency
Cryptocurrencies have grown in value in recent times. This has raised the number of interested investors in the market. Not many of the however know how to go about it. Its mystery also adds to the confusion many of them express. Here is a guide that shall help you learn how to trade in Bitcoin and other forms of cryptocurrencies.
You need to start by choosing a cryptocurrency exchange. There are plenty of them out there, each with certain advantages and disadvantages. You need to assess them in terms of 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 coins trading there, the better the chances of making profits. 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 to give you the security you need is your wallet. It is important to always keep your private key secure. That is what you use 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 wallets for such scenarios. You can find out more about them here.
This shall now be time to buy your first Bitcoin. You can do so after funding your wallet. There are choices you can make in this. You can even buy Bitcoin using your credit card or bank account. 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. 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 is always risk in investment. The ups and downs common in other markets are here as well. You need to keep the trading amounts conservative.
You shall find more investment advice on this site.