Whether it’s the idea of the cryptocurrency itself or the diversification of its portfolio, people from all walks of life are investing in digital currencies. If you are new to this concept and you are wondering 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 famous 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), Lightcoin ($ 17 billion) and MIOTA ($ 13 billion).
Being the first in the market, 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 bitcoins, then on the crypto market you will find all digital currencies in one place. Here is a list of exchanges based on their 24-hour trading volume.
What money storage options do I have?
Another important point is the storage of coins. One option, of course, is to keep it on the exchange where you buy them. However, when choosing an exchange you need to be careful. The popularity of digital currencies has led to the emergence of many new, unknown exchanges. Take the time to exercise due diligence to avoid scammers.
Another option that 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 a market and how can I learn more about it?
The cryptocurrency market fluctuates greatly. The changing nature of the market makes it more suitable for long-term gaming.
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 write about digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies aim to destroy the traditional currency and commodity market. Although there is still a long way to go before these currencies, the success of bitcoins and Ethereum has proven that there is a real interest in this concept. Understanding the basics of investing in cryptocurrency will help you go in the right direction.