Whether it’s the idea of cryptocurrencies themselves or diversifying their portfolio, 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 basics and considerations for cryptocurrency investing.
What cryptocurrencies are available and how do I buy them?
With a market capitalization of around $278 billion, Bitcoin is the most established cryptocurrency. Ethereum ranks second with a market cap of over $74 billion. In addition to these two coins, there are also other options, such as Ripple ($28 million), Litecoin ($17 million), and MIOTA ($13 million).
Being the first to market, there are many exchanges for Bitcoin trading around the world. BitStamp and Coinbase are two well-known exchanges in the United States. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies along with Bitcoin, then a crypto market is where you will find all digital currencies in one place. Here is a list of exchanges according to their 24-hour trading volume.
What options do I have for storing my money?
Another important consideration is the storage of the coins. One option, of course, is to store it in the stock market where you buy them. However, you should be careful when selecting the exchange. The popularity of digital currencies has resulted in many new and 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 safest options for storing your investment is hardware wallets. Companies like Ledger allow you to store Bitcoins and various other digital currencies as well.
What is the market like and how can I find out more?
The cryptocurrency market fluctuates a lot. The volatile nature of the market makes it more suitable 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. In addition to these sites, there are also many Twitter accounts that tweet about digital currencies, such as @BitcoinRTs and @AltCoinCalendar.
Digital currencies aim to disrupt the traditional currency and commodity market. Although these currencies still have a long way to go, the success of Bitcoins and Ethereum has shown that there is genuine interest in the concept. Understanding the basics of cryptocurrency investing will help you head in the right direction.