Whether it’s the notion of cryptocurrencies itself or diversification of their portfolio, people from all walks of life are investing in digital currencies. If you’re new to the idea and wondering what’s going on, below are a few basic concepts and considerations for investment in cryptocurrencies.
What cryptocurrencies are available and how can I buy them?
With a market cap of approximately $278 billion, Bitcoin is the most established cryptocurrency. Ethereum is second with a market cap of over $74 billion. Besides both of these currencies, you can find a number of other choices as well, including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being first to advertise, there are a lot of exchanges for Bitcoin trade all over the world. BitStamp and Coinbase are two well-known US-based exchanges. Bitcoin.de can be an established European exchange. If you are thinking about trading other digital currencies along with Bitcoin, a crypto marketplace is where you will find all of the digital currencies in one single place. Here is a set of exchanges according for their 24-hour trade volume.
What options do I need 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 need to be cautious in selecting the exchange. The popularity of digital currencies has resulted in lots of new, unknown exchanges popping up everywhere. Take some time to accomplish your due diligence so you can steer clear of the scammers.
Another choice you’ve with cryptocurrencies is as you are able to store them yourself. One of the safest choices for storing your investment is hardware wallets. Companies like Ledger skills for cryptocurrency jobs allow you store Bitcoins and some other digital currencies as well.
What’s the marketplace like and how do I find out about it?
The cryptocurrency market fluctuates a lot. The volatile nature of the marketplace makes it more suited 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. Besides these sites, additionally, there are many Twitter accounts that tweet about digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies aim 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’s genuine curiosity about the concept. Understanding the basics of cryptocurrency investment will allow you to go in the right direction.