How to Trade in Cryptocurrency
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 first select a cryptocurrency exchange. There exist several of those, each with their 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. You need to go for one with favorable fees to it. The more the coins trading there, the better the chances of making profits. 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.
It shall thus be time to create a wallet. This shall enable the safe storage of your cryptocurrency. You shall find a provisional wallet at your chosen exchange, but it is not a wise move to 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. Any amount you have no use in the trade should go to the offline storage. 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 more info on them here.
You should now proceed to buy your first Bitcoin. You need to first fund your wallet. There are choices you can make in this. You can even buy Bitcoin using your credit card or bank account. You can then move them to your personal wallet of the trading wallet at a larger exchange.
You shall thus be ready to trade and sell Bitcoin. You should have a plan on how you will 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 shall minimize your losses in case the trade goes sour.
Never trade with amounts you cannot afford to lose. There is always risk in investment. The ups and downs common in other markets are here as well. You need to keep the trading amounts conservative.
You can read more info about investing in this site.