Whether it’s the idea of the cryptocurrency itself, or the diversification of their portfolio, people from all walks of life are investing in digital currencies. If you are new to this concept and are interested in what is 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 approved cryptocurrency. Ethereum ranks second with a market capitalization of more than $ 74 billion. In addition to these two currencies, there are a number of other options, including Ripple ($ 28 billion), Litecoin ($ 17 billion) and MIOTA ($ 13 billion).
As the first on the market, there are many exchanges around the world for bitcoin trading. 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 bitcoins, then the crypto market is a place where you can find all digital currencies in one place. Here is a list of exchanges according to their 24-hour trading volume.
What opportunities do I have for storing money?
Another important consideration is the storage of coins. Of course, one option is to keep 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 work hard to avoid scams.
Another option with cryptocurrencies is to store them yourself. One of the safest options for storing your investment is hardware wallets. Companies like Ledger allow you to store bitcoin and several other digital currencies.
What is a market and how can I learn more about it?
The cryptocurrency market fluctuates greatly. The volatility of the market makes it more suitable for long-term play.
There are many established news sites that report on digital currencies, including Coindesk, Business Insider, Coin Telegraph and Cryptocoin News. Aside from these sites, there are also many Twitter accounts that report digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies aim to disrupt the traditional currency and commodity markets. Although these currencies still have a long way to go, the success of bitcoins and Ethereum has proven that there is genuine interest in this concept. Understanding the basics of cryptocurrency investing will help you go in the right direction.