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The Process of Trading in Bitcoin

The popularity that cryptocurrencies enjoy presently has made the highly desirable and valuable. This has made many investors gain interest in this new market. Most of them are however not conversant with it to know where to start. Its mystery also adds to the confusion many of them express. Here is a guide that shall help you learn how to trade in Bitcoin and other forms of cryptocurrencies.
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. It is important you get one with favorable fees. The more the coins trading there, the better the chances of making profits. 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 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. It is important to always keep your private key secure. It allows you to transact safely. You need to keep any amounts you do not wish to trade with, in the offline storage. You should then keep such 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 click here to find out more about them.
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. 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 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.
Never trade with amounts you cannot afford to lose. There are risks in investing. The ups and downs common in other markets are here as well. This calls for caution in how much you choose to trade with.
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