Whether it’s the idea of own cryptocurrency or diversifying their portfolio, people from all walks of life are investing in digital currencies. If you are new to the concept and know what is 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 cap of about $ 278 billion, Bitcoin is the strongest cryptocurrency. Ethereum is second with a market cap of over $ 74 billion. In addition to these two currencies, there are also a number of options, including Ripple ($ 28B), Litecoin ($ 17B) and MIOTA ($ 13B).
The first trade, many exchanges for Bitcoin trading around the world. BitStamp and Coinbase are two popular exchanges in the US. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies with Bitcoin, then a crypto market where you can find all the digital currencies in one place. Here is a list of exchanges according to their 24-hour sales volume.
What options do I have to save my money?
Another factor to consider is the storage of coins. One option, of course, is to store it instead of where you bought it. However, be careful when choosing instead. The popularity of digital money has resulted in many new, unknown exchanges coming in everywhere. Take the time to do your due diligence to avoid scammers.
Another option you have in cryptocurrency is that you can keep it to yourself. One of the safest options for storing your investment is hardware wallets. Companies like Ledger allow you to store Bitcoins and many other digital currencies as well.
What does the market want and how do I know about it?
There is a lot of volatility in the cryptocurrency market. The hectic nature of the market makes it especially suitable for a long-term play.
Many established news sites report on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. In addition to these sites, there are also many Twitter accounts tweeting about digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies are aimed at destroying the traditional money and commodities market. While these currencies have a long way to go, the success of Bitcoins and Ethereum has proven to have a real interest in the concept. Understanding the basics of investing in cryptocurrency will help you get in the right direction.