How to Trade in Cryptocurrency
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. It is also something that raises a lot of questions on its nature. Here is a guide that shall help you learn how to trade in Bitcoin and other forms of cryptocurrencies.
You need to start by choosing a cryptocurrency exchange. There are many out there, each with its 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. You need to land one with favorable fees applied. The more the coins trading there, the better the chances of making profits. 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 should then create a wallet. There is no better place to keep 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. The best place has always been your personal wallet. It is important to always keep your private key secure. That is what you use 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. You will find hardware wallets for such storage. 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 several options to this. You can even buy Bitcoin using your credit card or bank account. You need to then move them to your personal wallet or trading wallet at a 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. 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 need to only trade with an amount 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 watch how much you are dealing with.
You shall find more investment advice on this site.