Where to Start when you Wish to Invest in Cryptocurrency
Cryptocurrencies have become more popular, thus increasing in value. This has made many investors gain interest in this new 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 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 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. The more the supported coins, the better the returns you shall realize. 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. There is always a provisional wallet at your chosen exchange, but you should not leave your currency in there for too long. Storing it in your wallet is the only way you can be sure of security. 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. You should then keep such 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.
You need to now go ahead and buy your first Bitcoin. This shall be possible once you fund your wallet. There are several options to 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 are now ready to trade and sell Bitcoin. You should have a plan on how you will 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. This is how you keep your losses down should there be a poor trade.
You should always keep the investments to figures you can afford to lose. Investing always comes with plenty of risks. 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.