The Process of Trading in Bitcoin
The popularity that cryptocurrencies enjoy presently has made the highly desirable and valuable. This has raised the number of interested investors in the market. Not many of the however know how to go about it. 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 are plenty of them out there, each with certain advantages and disadvantages. You need to assess them in terms of 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 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.
It shall thus be time to create a wallet. This is where you will jeep your cryptocurrency safe. 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. You need to take care of that private key. It allows you to transact safely. You need to keep any amounts you do not wish to trade with, in the offline storage. This should be followed with keeping that info secure at all times. Should you lose the offline info, you will have permanently lost all that Bitcoin. You will find hardware wallets for such storage. You can find more info on them here.
You should now proceed to buy your first Bitcoin. This shall be possible once you fund your wallet. There are several options to 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 need to stick to trading not more than 5% of what you have per a single investment. This is how you keep your losses down should there be a poor trade.
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 watch how much you are dealing with.
You can read more info about investing in this site.