Tips for The Average Joe
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. Its unique characteristics add to the confusion of how to trade and sell it. Here is a way for you to prepare to trade and sell Bitcoin and other type of cryptocurrency.
You will first of all need to get 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 in any exchange you may be considering. It is important you get one with favorable fees. You will make the most money where they allow multiple coins. 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. This shall enable the safe storage of your cryptocurrency. As much as there is a provisional wallet when you pick an exchange, this does not mean you leave your currency in there. The best place to give you the security you need is your wallet. You need to be keen on the security of your private key. That is what you use 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. Losing off-line keys of a Bitcoin means losing it irreversibly. There are hardware wallets for such scenarios. You can click here to find out more about them.
You need to now go ahead and buy your first Bitcoin. This shall be possible once you fund your wallet. There are several options to this. There are options that allow you to use your credit card or bank account to make the buy. You need to then move them to your personal wallet or trading wallet at a larger exchange.
You are now ready to trade and sell Bitcoin. You should have a plan on how you will 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. If the trade does not work out, you will have lost very little.
Never trade with amounts you cannot afford to lose. There is always risk in investment. 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.