Whether it’s the idea of cryptocurrencies itself or diversification of the portfolio, folks from all walks of life are purchasing digital currencies. If you’re a new comer to the idea 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 get 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 those two currencies, you can find a number of other choices as well, including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being first to promote, there are a lot of exchanges for Bitcoin trade all around the world. BitStamp and Coinbase are two well-known US-based exchanges Best bitcoin cryptocurrency investment website. Bitcoin.de is an established European exchange. If you’re enthusiastic about trading other digital currencies along side Bitcoin, then a crypto marketplace is where you will find most of the digital currencies in a single place. Here is a listing of exchanges according to 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, would be to store it on the exchange where you purchase them. However, you must be mindful in selecting the exchange. The popularity of digital currencies has resulted in lots of new, unknown exchanges popping up everywhere. Take the time to accomplish your due diligence so you can avoid the scammers.
Another option you have with cryptocurrencies is that you could store them yourself. One of the safest alternatives for storing your investment is hardware wallets. Companies like Ledger allow you store Bitcoins and various other digital currencies as well.
What’s the marketplace like and how can I find out more 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 numerous 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 try to disrupt the original currency and commodity market. While these currencies still have a lengthy approach to take, the success of Bitcoins and Ethereum have proven that there is genuine fascination with the concept. Understanding the basic principles of cryptocurrency investment will help you go in the best direction.