Whether it’s the concept of cryptocurrency or the diversity of their portfolios, people from all walks of life are investing in digital currency. If you are new to the concept and wondering what is going on, here are some basic ideas and considerations for investing in cryptocurrency.
What cryptocurrencies are available and how do I buy them?
With a market cap of about $ 278 billion, Bitcoin is the most established cryptocurrency. Ethereum is in second place with a market cap of over $ 74 billion. In addition to these two currencies, there are many more options, including Ripple (28B), Litecoin ($ 17B) and MIOTA ($ 13B).
Being the first in the market, there is a lot of exchange for bitcoin trading around 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 with Bitcoin, this is a crypto marketplace where you will find all the digital currencies in one place. Here is a list of exchanges according to their 24-hour trade volume.
What options do I have to save my money?
Another important consideration is saving coins. An alternative, of course, is to store them on the exchange where you buy them. However, you need to be careful when choosing an exchange. The popularity of digital currencies has led to many new, unknown exchanges popping up everywhere. Take the time to do your best so you can avoid scammers.
Another option you have with cryptocurrencies is that you can save them yourself. One of the safest options for saving your investment is a hardware wallet. Companies like Laser also allow you to store bitcoins and other digital currencies.
What is the market like and how do I know more about it?
The cryptocurrency market fluctuates a lot. The volatile nature of the market makes it more suitable for 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 many Twitter accounts that tweet about digital currencies, including itBitcoinRTs and ltAltCoinCalendar.
The goal of digital currency is to disrupt the traditional currency and commodity market. Although these currencies still have a long way to go, the success of Bitcoin and Etherium has shown that there is real interest in the concept. Understanding the basics of cryptocurrency investing will help you get on the right track