Whether it’s the idea of cryptocurrencies themselves or the diversification of their portfolio, people from all walks of life invest in digital currencies. If you are new to this concept and you are wondering what is going on, here are some basic concepts and recommendations for investing in cryptocurrencies.
What cryptocurrencies are available and how to buy them?
Bitcoin with a market capitalization of about 278 billion dollars is the most common cryptocurrency. In second place is Ethereum with a market capitalization of more than $74 billion. In addition to these two currencies, there are a number of other options, including Ripple ($28 billion), Litecoin ($17 billion) and MIOTA ($13 billion).
At first, there are many bitcoin exchanges on the market around the world. BitStamp and Coinbase are two well-known exchanges in the United States. Bitcoin is an established European exchange. If you want to trade other digital currencies with bitcoins, the cryptocurrency market is the place where you can find all the digital currencies in one place. Here is a list of deals based on their 24-hour trading volume.
What are my options to save money?
Another important consideration is the storage of parts. One option, of course, is to store them on the stock exchange where you buy them. However, when choosing an exchange, you need to be careful. The popularity of digital currencies has led to the emergence of new exchanges, which no one knows about. Take time to exercise due diligence to avoid scams.
Another option that you have with cryptocurrencies is that you can store them yourself. Hardware wallets are one of the safest ways to store your investment. Companies like Ledger allow you to store bitcoins and other digital currencies.
What is the market and how to find out more?
The cryptocurrency market fluctuates greatly. The volatile nature of the market makes it more suitable for long-term gambling.
There are many reputable 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 write about digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies are designed to undermine traditional currency and commodity markets. Although these currencies still have a long way to go, the success of Bitcoin and Ethereum has proved that there is real interest in this concept. Understanding the basics of investing in cryptocurrency can help you move in the right direction.