Whether it’s the idea of cryptocurrencies itself or diversification of the portfolio, individuals from all walks of life are buying digital currencies. If you’re a new comer to the style 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 purchase them?
With a market cap around $278 billion, Bitcoin is the absolute most established cryptocurrency. Ethereum is second with a market cap of ellytoken over $74 billion. Besides both of these currencies, there are several other available choices as well, including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being first to market, there are certainly a lot of exchanges for Bitcoin trade throughout the world. BitStamp and Coinbase are two well-known US-based exchanges. Bitcoin.de is definitely an established European exchange. If you should be interested in trading other digital currencies along side Bitcoin, then the crypto marketplace is where you will find most of the digital currencies in one single place. Listed here is a listing of exchanges according to their 24-hour trade volume.
What options do I have to store my money?
Another important consideration is storage of the coins. One option, of course, is always to store it on the exchange where you get them. However, you will have to be cautious in selecting the exchange. The popularity of digital currencies has resulted in several new, unknown exchanges popping up everywhere. Take some time to do your due diligence so you can prevent the scammers.
Another choice you’ve with cryptocurrencies is that you can store them yourself. Among the safest alternatives 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 learn more about it?
The cryptocurrency market fluctuates a lot. The volatile nature of the market causes it to be more suited for 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 aim to disrupt the traditional currency and commodity market. While these currencies still have a lengthy way to go, the success of Bitcoins and Ethereum have proven that there’s genuine fascination with the concept. Understanding the basics of cryptocurrency investment will allow you to go in the best direction.