Whether it’s the idea of cryptocurrencies themselves or diversifying their portfolio, people from all walks of life are investing 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 there and how do I buy them?
With a market capitalization of approximately $278 billion, Bitcoin is the most established cryptocurrency . In second place is Ethereum with a market cap of over $74 billion. Alongside these two currencies, there are also a number of other options, including Ripple ($28 billion), Litecoin ($17 billion), and MIOTA ($13 billion).
First to market, there are many exchanges for bitcoin trading around the world. BitStamp and Coinbase are two well-known US exchanges. Kryptowährungen Kurse an established European exchange. If you are interested in trading other digital currencies along with bitcoin , then a crypto marketplace is where you will find all digital currencies in one place. Here is a list of exchanges by their 24-hour trading volume.
What options do I have for storing my money?
Another important aspect is the storage of the coins. Of course, one option is to store them at the exchange where you buy them. However, you need to be careful when choosing the exchange. The popularity of digital currencies has resulted in many new, unknown exchanges popping up everywhere. Take the time to do your due diligence so you can avoid the 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 also allow you to store bitcoins and several other digital currencies.
What is the market like and how can I learn more about it?
The cryptocurrency market fluctuates wildly. The volatility of the market makes it more suitable for a long-term play.
There are many established news sites covering digital currencies, including Coindesk , Business Insider, Coin Telegraph, and Cryptocoin News. Besides these sites, there are also many Twitter accounts that tweet about digital currencies, including @BitcoinRTs and @AltCoinCalendar .
Digital currencies aim to disrupt the traditional currency and commodity market. While these currencies still have a long way to go, the success of Bitcoins and Ethereum has proven that there is genuine interest in the concept. Understanding the basics of cryptocurrency investing will help point you in the right direction.
