Where to Start when you Wish to Invest in Cryptocurrency
The popularity that cryptocurrencies enjoy presently has made the highly desirable and valuable. This has made many investors gain interest in this new market. Not many of the however know how to go about it. 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 exist several of those, each with their pros and cons. 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. It is important you get one with favorable fees. You will make the most money where they allow multiple coins. There is also the security issue. 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. 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 has always been your personal wallet. You need to take care of that private key. It allows 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. You will find hardware wallets for such storage. You can find more info on 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. 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 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 is how you keep your losses down should there be a poor trade.
Never trade with amounts you cannot afford to lose. Investing always comes with plenty of risks. The cryptocurrency faces the ups and downs to trading markets as well. You need to watch how much you are dealing with.
You shall find more investment advice on this site.