How To Buy, Sell, And Manage Bitcoin
You don’t have to have millions to start your cryptocurrency investment, but you must be realistic and cautious about what you expect to get in return and all the risks involved.
Cryptocurrency investment can be challenging, but with research and advice from the right people, you can get the hang of it within no time and start seeing your gains. While Bitcoin is the most popular cryptocurrency, you need to know that there are many other cryptocurrencies to invest in.
Before investing in cryptocurrency, ensure that you have a fast and robust internet connection and have all the necessary documents to verify your identity. The other steps you need to follow to buy, sell and manage cryptocurrency are:
Choose a cryptocurrency wallet
Digital wallets are where you store cryptocurrency, and you need to have one before you start buying any crypto. You can choose between a cold and hot wallet. Cold wallets are physical hardware-based digital wallets to store cryptocurrency that you have not connected to the internet. They have multiple security layers, making them hard to hack.
On the other hand, hot wallets are software-based connected to the internet that comes mainly in the form of apps.
Some of the most popular wallet companies are Trezor and Ledger. You can also get a digital wallet on a crypto exchange package, for example, the one that comes with a Coinbase account.
Set up the crypto wallet
If you have a software wallet, all you need to do is create an account using a username and password, then enable two-factor authentication. If your wallet comes as part of your crypto exchange account package and the exchange operates KYC, you must provide certain documents for identity verification.
Unlike standard hot wallets, non-custodial wallets are not third-party hosted. They provide you with a randomly generated seed phrase or private key around 12 words long, which you have to store offline.
Cold wallets also give you a randomly generated key, 24 words long. However, you still have to create a PIN to access your wallet. You can also choose a paper cold wallet, which gives you a public and private key printed on paper for added security.
Choose an exchange
After setting up your crypto wallet, it’s time to pick an exchange and make your first transaction. Ensure the exchange you choose is regulated by the US Securities and Exchange Community like Coinbase, Gemini, Kraken, Crypto.com, and eToro. Further, you also need to check live cryptocurrency prices from a trusted source like CoinLore.
Research the exchanges to see what other cryptocurrencies they offer and their security measures. You can also research other exchanges on the internet like https://www.okex.com/buy-crypto, which is suitable for beginners and experts.
Buy and sell crypto
Some exchanges have buy and sell buttons, where you need to enter how much you want to buy or sell. You have to submit an order like in a conventional stock exchange on others. The standard orders are market order, stop order, and limit order.
Market order lets you buy a certain amount of Bitcoin at the market price, stop order sets a price for you to sell or buy Bitcoin, and the limit order instructs the exchange to sell or buy Bitcoin at a specific price or better. If you are looking for a trusted and secure cryptocurrency exchange, visit https://www.okx.com/markets/prices to access a large marketplace.
Managing your assets
One of the most common and successful strategies to manage Bitcoin investment is to buy and hold them, holding them for a long term hoping for a high average return.
You can also use the dollar-cost-average approach, where you buy Bitcoin after a certain period without looking at the price changes. Sometimes you will buy when the prices are low and other times when the prices are high, but in the long run, the prices will cancel out and give you an average high return.