Where to Start when you Wish to Invest in Cryptocurrency
Cryptocurrencies have grown in value in recent times. 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 will first of all need to get a cryptocurrency exchange. There are many out there, each with its pros and cons. 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 land one with favorable fees applied. You will make the most money where they allow multiple coins. The security is also critical. You should see the implementation of powerful security features, like 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. This is where you will jeep your cryptocurrency safe. There is always a provisional wallet at your chosen exchange, but you should not leave your currency in there for too long. The best place to give you the security you need is your wallet. You need to take care of that private key. 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. Losing off-line keys of a Bitcoin means losing it irreversibly. 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 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 are now ready to trade and sell 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. If the trade does not work out, you will have lost very little.
Never trade with amounts you cannot afford to lose. There are risks in investing. The ups and downs common in other markets are here as well. You need to keep the trading amounts conservative.
There are articles on this site you can refer to for investment advice.