The Process of Trading in Bitcoin
Cryptocurrencies have grown in value in recent times. This has made many investors gain interest in this new 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 where you shall learn how to trade and sell Bitcoin and other kinds of cryptocurrency.
You need to start by choosing 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 critical to any exchange you are contemplating. You need to go for one with favorable fees to it. The more the coins trading there, the better the chances of making profits. Security is an important factor. 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 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. You need to take care of that private key. 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. This should be followed with keeping that info secure at all times. Losing off-line keys of a Bitcoin means losing it irreversibly. You will find hardware wallets for such storage. You can find more info on 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 ways you can use your credit card or bank account to make the purchase. 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 need to stick to trading not more than 5% of what you have per a single investment. This shall minimize your losses in case the trade goes sour.
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.
