Whether it’s the idea of crypto itself or diversifying your portfolio, people from all walks of life are investing in digital currencies. If you’re new to the concept and wondering what’s going on, here are some basics and considerations for investing in cryptocurrency.
What cryptocurrencies are available and how do I buy them?
With a market capitalization of approximately $278 billion, Bitcoin is the most established cryptocurrency. Ethereum comes in second with a market capitalization of over $74 billion. Apart from these two coins, there are also other options, such as Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being first to market, there are many exchanges for trading Bitcoin around the world. BitStamp and Coinbase are two well-known exchanges based in the US. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies along with Bitcoin, then you will find all digital currencies in one place in a cryptocurrency exchange. Here is a list of exchanges based on their 24-hour trading volume.
What options do I have to save my money?
Another important consideration is the storage of the coins. One option, of course, is to store it on the exchange where you buy it. However, you will need to be careful when selecting the exchange. The popularity of digital currencies has resulted in the emergence of many new and unknown exchanges everywhere. Take the time to do your due diligence so you can avoid scammers.
Another option you have with cryptocurrencies is that you can store them yourself. One of the safest options to store your investment is hardware wallets. Companies like Ledger also allow you to store Bitcoins and various other digital currencies.
What is the market like and how can I get more information 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 reporting on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. In addition to these sites, there are 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 coins still have a long way to go, the success of Bitcoins and Ethereum has shown that there is genuine interest in the concept. Understanding the basics of cryptocurrency investing will help you head in the right direction.
