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. But most of them have no idea 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 gauge them through the parameters of their fees and purchase options, supported coins, security, as well as liquidity. These are important factor when it comes to any exchange you wish to use. You need to land one with favorable fees applied. 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 then need to create a wallet. This is where you will jeep your cryptocurrency safe. You shall find a provisional wallet at your chosen exchange, but it is not a wise move to 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. You need to keep any amounts you do not wish to trade with, in the offline storage. You should then keep such info secure at all times. Losing off-line keys of a Bitcoin means losing it irreversibly. There are hardware storage options for you to go with. You can click here to find out more about them.
You need to now go ahead and buy your first Bitcoin. You need to first fund your wallet. There are choices you can make in 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 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.
You should always keep the investments to figures 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 shall find more investment advice on this site.