How to Trade in Cryptocurrency
Cryptocurrencies have become more popular, thus increasing in value. 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. 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 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 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. The security is also critical. 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. This shall enable the safe storage of your cryptocurrency. As much as there is a provisional wallet when you pick an exchange, this does not mean you leave your currency in there. Storing it in your wallet is the only way you can be sure of security. It is important to always keep your private key secure. 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 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.
You should now proceed to buy your first Bitcoin. You can do so after funding your wallet. There are choices you can make in this. There are ways you can use your credit card or bank account to make the purchase. You can then move them to your personal wallet of the trading wallet at a larger exchange.
You can so far go into selling and trading Bitcoin. You should have a plan on how you will do so, and the discipline to see it through. A good habit to adopt is never trading more than 5% of your total stock in one investment move. This shall minimize your losses in case the trade goes sour.
You should always keep the investments to figures you can afford to lose. Investing always comes with plenty of risks. This market has the ups and downs of other markets. This calls for caution in how much you choose to trade with.
You can read more info about investing in this site.