The Process of Trading in Bitcoin
The popularity that cryptocurrencies enjoy presently has made the highly desirable and valuable. This has made many investors gain interest in this new market. Not many of the however know how to go about it. 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 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 important in any exchange you may be considering. You need to go for one with favorable fees to it. 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. This shall enable the safe storage of 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 to give you the security you need is your wallet. You need to be keen on the security of your private key. It is the means for you to transact safely. Any amount you have no use in the trade should go to 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 find more info on 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. There are ways you can use your credit card or bank account to make the purchase. You can then move them to your personal wallet of the trading wallet at a larger exchange.
You are now 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 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 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.