The Process of Trading in Bitcoin
Cryptocurrencies have grown in value in recent times. There are more investors keen in getting in on this market. Most of them are however not conversant with it to know where to start. 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 start by choosing a cryptocurrency exchange. There exist several of those, each with their pros and cons. 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. The security is also critical. 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 then need 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. It is important to always keep your private key secure. That is what you use to transact safely. All the amounts you do not intend to trade with should be stored offline. You need to then keep 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 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 several options to this. There are ways you can use your credit card or bank account to make the purchase. 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 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. 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. This market has the ups and downs of other markets. This calls for caution in how much you choose to trade with.
There are articles on this site you can refer to for investment advice.