Whether it's the idea of the cryptocurrency itself or the diversification of its portfolio, people from all walks of life are investing in digital currencies. If you are new to this concept and want to know what is going on, here are some basic concepts and considerations for investing in cryptocurrencies.
What are the available cryptocurrencies, how can I purchase them?
With a market capitalization of about $278 billion, Bitcoin is the most mature cryptocurrency. Ethereum ranked second, with a market capitalization of more than $74 billion. In addition to these two currencies, there are many other options, including Ripple [$28B], Litecoin [$17B] and MIOTA [$13B].
As the first to enter the market, there are many exchanges for Bitcoin transactions around the world. BitStamp and Coinbase are two famous US exchanges. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies with Bitcoin, you can find all the digital currencies in a cryptocurrency market. Below are the exchanges listed based on their 24-hour trading volume.
What options do I have to save?
Another important consideration is the storage of coins. Of course, one option is to store it in the exchange where they are purchased. However, you must be careful when choosing an exchange. The popularity of digital currencies has led to the sudden emergence of many new, unknown exchanges. Take the time to do your due diligence so you can avoid scammers.
Another option for cryptocurrencies is that you can store them yourself. One of the safest options for storage investment is the hardware wallet. Companies like Ledger also allow you to store Bitcoin and several other digital currencies.
How is the market situation, how can I learn more?
The cryptocurrency market is highly volatile. The volatility of the market makes it more suitable for long-term development.
There are many news sites that have established digital currency, including Coindesk, Business Insider, Coin Telegraph and Cryptocoin News. In addition to these sites, there are many Twitter accounts that post tweets about digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currency aims to undermine traditional currency and commodity markets. Although these currencies still have a long way to go, the success of Bitcoin and Ethereum proves the real interest in the concept. Understanding the basics of cryptocurrency investments will help you get started in the right way.