The Process of Trading in Bitcoin
The popularity that cryptocurrencies enjoy presently has made the highly desirable and valuable. There are more investors keen in getting in on this 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 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 assess them in terms of fees and purchase options, supported coins, security, as well as liquidity. These are important in any exchange you may be considering. You need to go for one with favorable fees to it. The more the supported coins, the better the returns you shall realize. 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 then need 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. That is what you use to transact safely. Any amount you have no use in the trade should go to 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. There are hardware storage options for you to go with. You can find out more about them here.
You should now proceed to buy your first Bitcoin. This shall be possible once you fund your wallet. There are choices you can make in this. There are options that allow you to use your credit card or bank account to make the buy. You can then move them to your personal wallet of the trading wallet at a larger exchange.
You can so far go into selling and trading Bitcoin. You should have a plan on how you will do so, and the discipline to see it through. You need to stick to trading not more than 5% of what you have per a single investment. This shall minimize your losses in case the trade goes sour.
You need to only trade with an amount 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.
There are articles on this site you can refer to for investment advice.