Whether it’s the notion of cryptocurrencies itself or diversification of the 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 some basic concepts and considerations for investment in cryptocurrencies.
What cryptocurrencies are available and just how do I purchase them?
With a market cap of about $278 billion, Bitcoin is probably the most established cryptocurrency. Ethereum is second with a market cap of ellytoken over $74 billion. Besides both of these currencies, you can find a number of other available choices as well, including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being first to advertise, there are a lot of exchanges for Bitcoin trade throughout the world. BitStamp and Coinbase are two well-known US-based exchanges. Bitcoin.de is an established European exchange. If you should be thinking about trading other digital currencies alongside Bitcoin, then a crypto marketplace is where you may find all the digital currencies in one place. This is a listing of exchanges according with 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 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. Take the time to complete your due diligence so you can avoid the scammers.
Another option you’ve with cryptocurrencies is that you can store them yourself. Among the safest options for storing your investment is hardware wallets. Companies like Ledger allow you store Bitcoins and several other digital currencies as well.
What’s the marketplace like and just how can I find out about it?
The cryptocurrency market fluctuates a lot. The volatile nature of the marketplace helps it be 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 are 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 long strategy to use, the success of Bitcoins and Ethereum have proven that there is genuine interest in the concept. Understanding the basics of cryptocurrency investment will help you go in the proper direction.