Whether it’s the notion of cryptocurrencies itself or diversification of the portfolio, people from all walks of life are purchasing digital currencies. If you’re new to the concept and wondering what’s going on, here are some basic concepts and considerations for investment in cryptocurrencies.
What cryptocurrencies can be found and how can I buy them?
With a market cap of about $278 billion, Bitcoin is the absolute most established cryptocurrency. Ethereum is second with a market cap of over $74 billion. Besides these two currencies, there are several other choices as well, including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being first to market, there are a large amount of exchanges for Bitcoin trade all around the world. BitStamp and Coinbase are two well-known US-based exchanges How to invest in cryptocurrency 2020. Bitcoin.de can be an established European exchange. If you are interested in trading other digital currencies along with Bitcoin, then a crypto marketplace is where you will find most of the digital currencies in one single place. Here is a list 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, obviously, is to store it on the exchange where you purchase 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 the time to accomplish your due diligence so you can steer clear of the scammers.
Another option you have with cryptocurrencies is as possible store them yourself. One of the safest options for storing your investment is hardware wallets. Companies like Ledger allow you store Bitcoins and other digital currencies as well.
What’s the marketplace like and how can I learn more 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 lots of established news sites that report on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. Besides these sites, there’s also many Twitter accounts that tweet about digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies try to disrupt the standard currency and commodity market. While these currencies still have an extended approach to take, the success of Bitcoins and Ethereum have proven that there surely is genuine fascination with the concept. Understanding the basic principles of cryptocurrency investment will help you go in the proper direction.