Whether it's the idea of cryptocurrencies or the diversification of its portfolio, people from all walks of life are investing in cryptocurrencies. If you are new to this concept and wonder what is happening, here are some basic concepts and considerations for investing in cryptocurrencies.
What cryptocurrencies are available and how can I buy them?
With a market capital of about $ 278 billion, Bitcoin is the most established cryptocurrency. Etherom is the second with a market capitalization of over $ 74 billion. Besides these two currencies, there are a number of other options, including Ripple ($ 28B), Litecoin ($ 17B), and MIOTA ($ 13B).
To be the first to launch the market, there are a lot of exchanges for Bitcoin trading around the world. BitStamp and Coinbase are two known exchanges in the United States. Bitcoin.de is an established European exchange. If you are interested in trading other cryptocurrencies besides Bitcoin, the crypto market is where you'll find all cryptocurrencies in one place. Below is a list of stock exchanges according to 24-hour trading volume.
What options do I have to store my money?
Another important consideration is the storage of currencies. One option, of course, is to store it on the stock exchange you buy from. However, you have to be careful in choosing the stock exchange. The popularity of cryptocurrencies has led to the emergence of many unknown new exchanges everywhere. Take your time in due diligence so you can avoid scammers.
Another option you have with cryptocurrency is that you can store it yourself. Device wallets are one of the safest options to store your investments. Companies like Ledger allow you to store bitcoins and several other cryptocurrencies.
What is the format of the market and how can I learn 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 fixed news sites that report on cryptocurrencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. Besides these sites, there are also many Twitter accounts that tweet about cryptocurrencies, including BitcoinRTs and AltCoinCalendar.
Cryptocurrencies aim to disrupt the traditional currency and commodity market. Although these currencies still have a long way to go, the success of Bitcoins and Ethereum has demonstrated a genuine interest in the concept. Understanding the basics of investing in cryptocurrency will help you get started the right way.