Whether it’s the very idea of cryptocurrency or portfolio diversification, people from all walks of life invest in digital currencies. If you’re 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 $ 278 billion, Bitcoin is the most established cryptocurrency. Ethereum is the second largest market with more than $ 74 billion. In addition to these two currencies, there are many other options, including Ripple ($ 28B), Litecoin ($ 17B) and MIOTA ($ 13B).
Being the first to trade, there are many exchanges in Bitcoin trading worldwide. BitStamp and Coinbase are two popular exchanges based in the US. Bitcoin.de is a well-established European exchange. If you are interested in trading other digital currencies along with Bitcoin, the crypto market is where you will find all digital currencies in one place. Here is a list of exchanges based on 24-hour trading volume.
What options do I have to save my money?
Another important account is the storage of coins. One option, of course, is to save it for the exchange you buy. However, you should carefully select the exchange. Due to the popularity of digital currencies, many new and unknown exchanges have appeared everywhere. Take the time to do the proper tasks so you can avoid scammers.
Another option you have with cryptocurrencies is that you can save them yourself. The safest options for saving your investment are hardware wallets. Companies like Ledger allow you to store Bitcoins and some other digital currencies.
What is the market like and how can I learn more about it?
The cryptocurrency market moves a lot. The volatile nature of the market is more suitable for long-term games.
There are numerous news sites that report on digital currency, including Coindesk, Business Insider, Coin Telegraph and Cryptocoin News. In addition to these sites, there are many Twitter accounts that tweet around digital currency, 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 shown that there is a real interest in the concept. Understanding the basics of cryptocurrency investment will get you in the right direction.