Whether it’s the very idea of cryptocurrencies or the diversification of their portfolio, people in all walks of life are investing in digital currencies. If you are new to the concept and are wondering what is 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 capitalization of about $ 278 billion, Bitcoin is the most established cryptocurrency. Ethereum ranks second with a market capitalization of more than $ 74 billion. In addition to these two currencies, there are also 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 in the United States. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies along with Bitcoin, then a cryptocurrency market is where you will find all digital currencies in one place. Here is a list of trades 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 in the bag where you buy them. However, you should be careful when selecting the exchange. The popularity of digital currencies has led to the emergence of many new and unknown exchanges 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 allow you to store Bitcoins and various other digital currencies as well.
What is the market like and how can I find out more?
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, such as Coindesk, Business Insider, Coin Telegraph and Cryptocoin News. In addition to these sites, there are also many Twitter accounts that tweet about digital currencies, such as @BitcoinRTs and @AltCoinCalendar.
Digital currencies aim to disrupt 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 cryptocurrency will help you go in the right direction.