Whether it is 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 the concept and are wondering what is going on, here are some basic concepts and considerations for investing in cryptocurrencies.
What cryptocurrencies are available and how can I 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 ($ 28 billion), Litecoin ($ 17 billion) and MIOTA ($ 13 billion).
As the first on the market, there are a lot of exchanges for trading Bitcoins around the world. BitStamp and Coinbase are two well-known US stock exchanges. Bitcoin.de has established a European exchange. If you are interested in trading other digital currencies along with Bitcoin, then there is a crypto market where you will find all digital currencies in one place. Here is a list of exchanges according to their 24-hour trade volume.
What options do I have for saving money?
The next important consideration is keeping coins. One of the possibilities, of course, is keeping them on the stock exchange where you buy them. However, you will need to be careful when choosing an exchange. The popularity of digital currencies has resulted in many new, unknown exchanges appearing everywhere. Take time for detailed analysis 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 bitcoin and several other digital currencies.
What is the market like and how can I find out more about it?
The cryptocurrency market fluctuates greatly. The unstable nature of the market makes it more suitable for long-term play.
There are many established news websites 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 post tweets about digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies aim to disrupt the traditional currency and commodity market. Although these currencies have a long way to go, the success of Bitcoin and Ethereum has proven that there is a genuine interest in the concept. Understanding the basics of investing in cryptocurrencies will help you go in the right direction.