Whether it’s the idea of cryptocurrencies or diversifying their portfolios, 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 ideas and considerations for investing in cryptocurrency.
What cryptocurrencies are available and how do I buy them?
With a market cap of around $278 billion, Bitcoin is the most established cryptocurrency. Ethereum ranks second with a market cap of over $74 billion. Apart from these two currencies, there are many other options including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being the first to market, there are many exchanges around the world to trade Bitcoin. BitStamp and Coinbase are two well-known US-based exchanges. Bitcoin.de is an established European exchange. If you are interested in trading Bitcoin along with other digital currencies, then a crypto marketplace 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 to save my money?
Another important consideration is the storage of coins. One option, of course, is to store them on the exchange where you buy them. However, you need to be careful when choosing an 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 scammers.
Another option you have with cryptocurrencies is that you can store them yourself. One of the most secure options for storing your investments is a hardware wallet. Companies like Ledger also let you store bitcoins and other digital currencies.
What is the market like 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 established news sites 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 tweet about the digital currency, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies aim to disrupt traditional currency and commodity markets. While 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 get on the right track