The Process of Trading in Bitcoin
Cryptocurrencies have become more popular, thus increasing in value. This has raised the number of interested investors in the market. Most of them are however not conversant with it to know where to start. Its unique characteristics add to the confusion of how to trade and sell it. 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. The more the supported coins, the better the returns you shall realize. There is also the security issue. 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. 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. 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. All the amounts you do not intend to trade with should be stored offline. This should be followed with keeping that info secure at all times. If you lose that offline info, you will have lost a huge investment permanently. 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. There are options that allow you to use your credit card or bank account to make the buy. 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 should have a plan on how you intend to do so, and the discipline to do so. You need to stick to trading not more than 5% of what you have per a single investment. This is how you keep your losses down should there be a poor trade.
Never trade with amounts you cannot afford to lose. There are risks in investing. The cryptocurrency faces the ups and downs to trading markets as well. You need to keep the trading amounts conservative.
There are articles on this site you can refer to for investment advice.
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