How to Trade in Cryptocurrency
The popularity that cryptocurrencies enjoy presently has made the highly desirable and valuable. This has raised the number of interested investors in the market. Not many of the however know how to go about it. Its unique characteristics add to the confusion of how to trade and sell it. 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 are plenty of them out there, each with certain advantages and disadvantages. 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. 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 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.
It shall thus be time to create a wallet. There is no better place to keep your cryptocurrency. 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. You need to be keen on the security of your private key. It is the means for you to transact safely. All the amounts you do not intend to trade with should be stored offline. 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 wallets for such scenarios. 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 several options to this. There are options that allow you to use your credit card or bank account to make the buy. 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 should have a plan on how you intend to do so, and the discipline to do so. You may, for instance, avoid the temptation to put more than 5% of your total portfolio on a single investment. This shall minimize your losses in case the trade goes sour.
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.
You can read more info about investing in this site.