Whether it’s the idea of cryptocurrencies itself or diversification of the portfolio, people from all walks of life are investing in digital currencies. If you’re new to the idea 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, you will find numerous other available choices as well, including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being first to promote, there are certainly a lot of exchanges for Bitcoin trade all around the world. BitStamp and Coinbase are two well-known US-based exchanges What is the best cryptocurrency to invest in 2020. Bitcoin.de is definitely an established European exchange. If you’re thinking about trading other digital currencies along side Bitcoin, then the crypto marketplace is where you will discover all the digital currencies in one place. Here is a list of exchanges according with 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 always to store it on the exchange where you purchase them. However, you must be cautious in selecting the exchange. The popularity of digital currencies has resulted in several new, unknown exchanges popping up everywhere. Make an effort to accomplish your due diligence in order to prevent the scammers.
Another option you’ve with cryptocurrencies is as you are able to store them yourself. Among 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 industry like and just how can I learn more about it?
The cryptocurrency market fluctuates a lot. The volatile nature of industry makes it more suited to a long-term play.
There are many established news sites that report on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. Besides these sites, there are also many Twitter accounts that tweet about digital currencies, including @BitcoinRTs and @AltCoinCalendar.
Digital currencies aim to disrupt the traditional currency and commodity market. While these currencies still have an extended way to go, the success of Bitcoins and Ethereum have proven that there is genuine curiosity about the concept. Understanding the fundamentals of cryptocurrency investment will allow you to go in the right direction.