Whether it is the very idea of cryptocurrencies or the diversification of their portfolio, people from all walks of life invest in digital currencies. If you don’t know the concept and are wondering what’s going on, here are some basics and considerations for investing in cryptocurrencies.
What cryptocurrencies are available and how do I buy them?
With a market cap of about $ 278 billion, Bitcoin is the most established cryptocurrency. Ethereum is the second with a market capitalization in excess of $ 74 billion. In addition to these two currencies, there are also several other options, such as Ripple ($ 28 million), Litecoin ($ 17 million) and MIOTA ($ 13 million).
Being the first to trade, there are many exchanges for Bitcoin trading around the world. BitStamp and Coinbase are two well-known exchanges based in the United States. Bitcoin.de is a consolidated European stock exchange. If you are interested in trading other digital currencies along with Bitcoin, an encryption 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 for storing 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 should be careful when selecting your exchange. The popularity of digital currencies has given rise to many new unknown exchanges appearing everywhere. Take the time to do your due diligence so you can 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 portfolios. Companies like Ledger also allow you to store bitcoins and various other digital currencies.
How is the market and how can I get more information?
The cryptocurrency market fluctuates a lot. The volatile nature of the market makes it more suitable for a long-term game.
There are many established news sites that report on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. In addition to these sites, there are also many Twitter accounts that tweet about digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies seek to alter the traditional market for foreign exchange and commodities. While these currencies still have a long way to go, the success of Bitcoins and Ethereum has shown that there is a genuine interest in the concept. Understanding the basics of investing in cryptocurrencies will help you go in the right direction.