People from all walks of life are investing in digital currencies, whether it’s for the very idea of cryptocurrencies or to diversify their portfolio. 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 can I purchase them?
With a market capitalization of around $278 billion, Bitcoin is the most popular cryptocurrency. Ethereum is in second place with a market capitalization of over $74 billion. Besides these two currencies, there are a number of other options, including Ripple ($28 billion), Litecoin ($17 billion) and MIOTA ($13 billion).
Being the first to market, there are many Bitcoin trading exchanges around the world. BitStamp and Coinbase are two prominent exchanges in the US. Bitcoin.de is a recognized European exchange. If you are interested in trading other digital currencies along with Bitcoin, then the crypto market is where you will find all digital currencies in one place. Here is a list of exchanges based on their 24-hour trading volume.
What are my money storage options?
Another important point is the storage of coins. One option, of course, is to store it at the exchange where you buy them. However, you need to be careful when choosing an exchange. The popularity of digital currencies has led to the emergence of many new, unknown exchanges. Take the time to do your due diligence to avoid scammers.
Another option you have with cryptocurrencies is that you can store them yourself. One of the safest options for storing investments is hardware wallets. Companies like Ledger allow you to store bitcoins and several other digital currencies.
What is the market and how can I learn more about it?
The cryptocurrency market fluctuates a lot. The volatile nature of the market makes it more suitable for long-term play.
There are many well-known news sites that report on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. In addition to these sites, there are also many Twitter accounts that talk about 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 Bitcoin and Ethereum has proven that there is real interest in the concept. Understanding the basics of cryptocurrency investing will help you stay on track.