The Process of Trading in Bitcoin
Cryptocurrencies have become more popular, thus increasing in value. 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 where you shall learn how to trade and sell Bitcoin and other kinds 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 factor when it comes to any exchange you wish to use. It is important you get one with favorable fees. The more the supported coins, the better the returns you shall realize. 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 should then 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. The best place has always been your personal wallet. It is important to always keep your private key secure. 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. You will find hardware wallets for such storage. You can find more info on them here.
You need to now go ahead and buy your first Bitcoin. You can do so after funding 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 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.
Never trade with amounts you cannot 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.
You shall find more investment advice on this site.