Whether it’s the idea of cryptocurrencies itself or diversification of the portfolio, folks from all walks of life are buying digital currencies. If you’re new to the idea and wondering what’s going on, here are a few basic concepts and considerations for investment in cryptocurrencies.
What cryptocurrencies are available and how can I find them?
With a market cap around $278 billion, Bitcoin is the absolute most established cryptocurrency. Ethereum is second with a market cap of over $74 billion. Besides both of these currencies, you can find a number of other choices as well, including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being first to advertise, there are a large amount of exchanges for Bitcoin trade all over the world. BitStamp and Coinbase are two well-known US-based exchanges. Bitcoin.de can be an established European exchange. If you’re thinking about trading other digital currencies along side Bitcoin, a crypto marketplace is where you will see all the digital currencies in one single place. Listed here is a list of exchanges according with their 24-hour trade volume.
What options do I need to store my money?
Another important consideration is storage of the coins. One option, needless to say, would be to store it on the exchange where you purchase them. However, you must be mindful in selecting the exchange. The popularity of digital currencies has resulted in lots of new, unknown exchanges popping up everywhere. Take the time to do your due diligence in order to prevent the scammers.
Another choice you have with cryptocurrencies is as you are able get paid in crypto to store them yourself. One of the safest options for storing your investment is hardware wallets. Companies like Ledger allow you store Bitcoins and various other digital currencies as well.
What’s the market like and how can I find out more about it?
The cryptocurrency market fluctuates a lot. The volatile nature of the market helps it be more fitted to a long-term play.
There are many established news sites that report on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. Besides these sites, there’s also many Twitter accounts that tweet about digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies try to disrupt the standard currency and commodity market. While these currencies still have a lengthy way to go, the success of Bitcoins and Ethereum have proven that there surely is genuine curiosity about the concept. Understanding the basics of cryptocurrency investment will help you go in the proper direction.