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. 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 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 factor when it comes to any exchange you wish to use. It is important you get one with favorable fees. The more the coins trading there, the better the chances of making profits. Security is an important factor. You need to see some strong measures in place, such as 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. The best place has always been your personal wallet. You need to be keen on the security of your private key. It is the means for you to transact safely. You need to keep any amounts you do not wish to trade with, in the offline storage. You should then keep such info secure at all times. If you lose that offline info, you will have lost a huge investment permanently. There are hardware storage options for you to go with. You can find more info on them here.
You need to now go ahead and 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 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. If the trade does not work out, you will have lost very little.
You need to only trade with an amount you can afford to lose. Investing always comes with plenty of risks. This market has the ups and downs of other markets. You need to keep the trading amounts conservative.
There are articles on this site you can refer to for investment advice.