How to Trade in Cryptocurrency
Cryptocurrencies have grown in value in recent times. This has made many investors gain interest in this new 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 guide that shall help you learn how to trade in Bitcoin and other forms of cryptocurrencies.
You will first of all need to get 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. You will make the most money where they allow multiple coins. 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 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. 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. 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.
You should now proceed to buy your first Bitcoin. You can do so after funding 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. You need to stick to trading not more than 5% of what you have per a single investment. This shall minimize your losses in case the trade goes sour.
You should always keep the investments to figures you can afford to lose. There is always risk in investment. This market has the ups and downs of other markets. This calls for caution in how much you choose to trade with.
There are articles on this site you can refer to for investment advice.