Whether it’s the idea of cryptocurrencies or the diversification of their portfolio, people from all walks of life are investing in digital currencies. If you are new to the concept and wondering what’s going on, here are some basic concepts and considerations for investing in cryptocurrencies.
What cryptocurrencies are available and how to buy them?
With a market capitalization of about $ 278 billion, bitcoin is the most established cryptocurrency. Ethereum is second with a market capitalization of over $ 74 billion. In addition to these two currencies, there are a number of other options, including Ripple ($ 28B), Litecoin ($ 17B) and MIOTA ($ 13B).
As the first on the market, there are many bitcoin exchanges around the world. BitStamp and Coinbase are two well-known exchanges based in the United States. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies along with bitcoin, then the crypto market is where you will find all digital currencies in one place. Here is a list of exchanges according to their 24-hour trading volume.
What options do I have to keep my money?
Another important consideration is the storage of coins. One option, of course, is to store it on the exchange where you buy them. However, you will need to be careful when choosing an exchange. The popularity of digital currencies has led to the emergence of many new, unknown exchanges everywhere. Take the time to do your due diligence to avoid scammers.
Another option you have with cryptocurrencies is that you can store them yourself. One of the safest options for storing your investment is hardware wallets. Companies like Ledger allow you to store bitcoins and several other digital currencies.
What is the market and how can I learn more about it?
The cryptocurrency market fluctuates a lot. The changing nature of the market makes it more suitable for long-term play.
There are many well-known news sites that report on digital currencies, including Coindesk, Business Insider, Coin Telegraph and Cryptocoin News. In addition to these sites, there are many Twitter accounts that tweet about digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies aim to disrupt the traditional currency and commodity market. Although these currencies still have a long way to go, the success of Bitcoins and Ethereum has proven that there is real interest in the concept. Understanding the basics of investing in cryptocurrency will help you move in the right direction.