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February 16, 2020

Financial

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How to Trade in Cryptocurrency

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. Its unique characteristics add to the confusion of how to trade and sell it. 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 exist several of those, each with their 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 factor when it comes to any exchange you wish to use. You need to go for one with favorable fees to it. The more the coins trading there, the better the chances of making profits. The security is also critical. You should see the implementation of powerful security features, like secure passwords, two-factor authentication, offline cold storage for most of your funds, and professional grade encryption.
You then need to create a wallet. This shall enable the safe storage of your cryptocurrency. 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 be keen on the security of your private key. 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. 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. You can even buy Bitcoin using your credit card or bank account. 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 need a good plan to do so, and the discipline to see it through. 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 is always risk in investment. The cryptocurrency faces the ups and downs to trading markets as well. 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.