Whether it’s the idea of cryptocurrencies itself or diversification of the portfolio, people from all walks of life are purchasing digital currencies. If you’re a new comer to the concept and wondering what’s going on, here are some basic concepts and considerations for investment in cryptocurrencies.
What cryptocurrencies can be found and how can I buy them?
With a market cap of about $278 billion, Bitcoin is probably the most established cryptocurrency. Ethereum is second with a market cap of over $74 billion. Besides those two currencies, there are numerous other 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 all around the world. BitStamp and Coinbase are two well-known US-based exchanges. Bitcoin.de can be an established European exchange. If you should be interested in trading other digital currencies along side Bitcoin, then a crypto marketplace is where you will see all of the digital currencies in a single place. Here is a list of exchanges according for their 24-hour trade volume.
What options do I need certainly to store my money?
Another important consideration is storage of the coins. One option, obviously, would be to store it on the exchange where you buy them. However, you will need to be mindful in selecting the exchange. The popularity of digital currencies has resulted in several new, unknown exchanges popping up everywhere. Take the time to complete your due diligence to help you steer clear of the scammers.
Another option you have with cryptocurrencies is as possible store them yourself. One of many safest options for storing your investment is hardware wallets. Companies like freelance Ledger allow you store Bitcoins and other digital currencies as well.
What’s the marketplace like and just how can I learn more about it?
The cryptocurrency market fluctuates a lot. The volatile nature of the marketplace makes it more suited to a long-term play.
There are lots of 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 long approach to take, the success of Bitcoins and Ethereum have proven that there is genuine curiosity about the concept. Understanding the basics of cryptocurrency investment will allow you to go in the right direction.