Whether it’s the notion of cryptocurrencies itself or diversification of these portfolio, individuals from all walks of life are purchasing digital currencies. If you’re a new comer to the concept and wondering what’s going on, below are a few basic concepts and considerations for investment in cryptocurrencies.
What cryptocurrencies are available and just how do I buy them?
With a market cap of about $278 billion, Bitcoin is the most established cryptocurrency. Ethereum is second with a market cap of ellytoken over $74 billion. Besides these two currencies, there are several other options as well, including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being first to advertise, there are always a large amount of exchanges for Bitcoin trade all over the world. BitStamp and Coinbase are two well-known US-based exchanges. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies alongside Bitcoin, then a crypto marketplace is where you will see all of the digital currencies in one single place. Here is a list of exchanges according for their 24-hour trade volume.
What options do I have to store my money?
Another important consideration is storage of the coins. One option, needless to say, is to store it on the exchange where you purchase them. However, you must be cautious in selecting the exchange. The popularity of digital currencies has resulted in several new, unknown exchanges popping up everywhere. Make an effort to do your due diligence to help you avoid the scammers.
Another choice you’ve with cryptocurrencies is as possible 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 do 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 strategy to use, the success of Bitcoins and Ethereum have proven that there surely is genuine interest in the concept. Understanding the basic principles of cryptocurrency investment can help you go in the best direction.