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. Most of them are however not conversant with it to know where to start. Its mystery also adds to the confusion many of them express. Here is a guide that shall help you learn how to trade in Bitcoin and other forms of cryptocurrencies.
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 important factor when it comes to any exchange you wish to use. 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 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 should then create a wallet. This is where you will jeep your cryptocurrency safe. There is always a provisional wallet at your chosen exchange, but you should not leave your currency in there for too long. 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. 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. 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.
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 options that allow you to use your credit card or bank account to make the buy. There shall be the option to move it to your personal wallet or the one at the larger exchange.
You are now ready to trade and sell Bitcoin. You need a good plan to 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 is how you keep your losses down should there be a poor trade.
You should always keep the investments to figures you can afford to lose. There are risks in investing. 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.