The Process of Trading in Bitcoin
The popularity that cryptocurrencies enjoy presently has made the highly desirable and valuable. 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 need to first select a cryptocurrency exchange. There are plenty of them out there, each with certain advantages and disadvantages. 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 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.
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. You need to take care of that private key. 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 need to then keep that info secure at all times. If you lose that offline info, you will have lost a huge investment permanently. 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 many ways you can do so. 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 shall thus be ready to trade and sell Bitcoin. You need a good plan to 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. If the trade does not work out, you will have lost very little.
Never trade with amounts you cannot afford to lose. Investing always comes with plenty of risks. This market has the ups and downs of other markets. You need to watch how much you are dealing with.
You shall find more investment advice on this site.