Whether it’s the notion of cryptocurrencies itself or diversification of their portfolio, individuals from all walks of life are investing in digital currencies. If you’re a new comer to the style and wondering what’s going on, here are a few basic concepts and considerations for investment in cryptocurrencies.
What cryptocurrencies are available and how do I find them?
With a market cap around $278 billion, Bitcoin is probably the most established cryptocurrency. Ethereum is second with a market cap of over $74 billion. Besides both of these currencies, there are numerous additional options as well, including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being first to promote, there are certainly a large amount 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 are enthusiastic about trading other digital currencies alongside Bitcoin, a crypto marketplace is where you will find all the digital currencies in a single place. Here is a list of exchanges according to their 24-hour trade volume.
What options do I have to store my money?
Another important consideration is storage of the coins. One option, of course, is always to store it on the exchange where you buy them. However, you will have to be mindful in crypto jobs selecting the exchange. The popularity of digital currencies has resulted in lots of new, unknown exchanges popping up everywhere. Take some time to do your due diligence in order to prevent the scammers.
Another option you have with cryptocurrencies is as you are able to store them yourself. Among the safest alternatives for storing your investment is hardware wallets. Companies like Ledger allow you store Bitcoins and many digital currencies as well.
What’s the market like and how do I learn more about it?
The cryptocurrency market fluctuates a lot. The volatile nature of the market helps it be more suited for a long-term play.
There are numerous established news sites that report on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. Besides these sites, there are also many Twitter accounts that tweet about digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies try to disrupt the original 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 interest in the concept. Understanding the basic principles of cryptocurrency investment will help you go in the right direction.