The popularity that cryptocurrencies enjoy presently has made the highly desirable and valuable. This has made many investors gain interest in this new market. But most of them have no idea 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 first select 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. Security is an important factor. 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. There is no better place to keep your cryptocurrency. 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. 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. Should you lose the offline info, you will have permanently lost all that Bitcoin. There are hardware wallets for such scenarios. You can find out more about them here.
This shall now be time to buy your first Bitcoin. You can do so after funding your wallet. There are many ways you can do so. 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 should have a plan on how you intend to do so, and the discipline to do so. A good habit to adopt is never trading more than 5% of your total stock in one investment move. If the trade does not work out, you will have lost very little.
Never trade with amounts you cannot 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 keep the trading amounts conservative.
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