People from all walks of life are investing in digital currencies, whether for the concept of cryptocurrencies or to diversify their portfolios. If you’re new to the concept and wondering what’s going on, here are some fundamental concepts and considerations for cryptocurrency investment.
What cryptocurrencies are there, and how do I get them?
Bitcoin is the most established cryptocurrency, with a market cap of approximately $278 billion. Ethereum is the second most valuable cryptocurrency, with a market capitalization of more than $74 billion. Aside from these two currencies, there are several others to consider, including Ripple ($28B), Litecoin ($17B), and MIOTA ($13B).
Because Bitcoin was the first to market, there are numerous exchanges for Bitcoin trade all over the world. BitStamp and Coinbase are two well-known exchanges based in the United States. Bitcoin.de is a well-known European exchange. If you want to trade other digital currencies in addition to Bitcoin, a crypto marketplace is where you will find all of the digital currencies in one place. Here is a list of exchanges sorted by 24-hour trade volume.
What are my options for storing my money?
Another important consideration is coin storage. Of course, one option is to keep it on the exchange where you bought it. However, you must exercise caution when selecting the exchange. Because of the popularity of digital currencies, many new, unknown exchanges have sprung up all over the place. Take the time to do your homework so you can avoid scammers.
Another option for storing cryptocurrencies is to keep them yourself. Hardware wallets are one of the most secure ways to store your investment. Companies such as Ledger allow you to store Bitcoins as well as a variety of other digital currencies.
What is the state of the market, and how can I learn more about it?
The cryptocurrency market is highly volatile. Because of the market’s volatility, it is better suited for a long-term investment.
Many well-known news outlets cover digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. Aside from these websites, there are numerous Twitter accounts dedicated to digital currencies, such as @BitcoinRTs and @AltCoinCalendar.
The goal of digital currencies is to destabilize the traditional currency and commodity markets. While these currencies have a long way to go, the success of Bitcoin and Ethereum has demonstrated that there is genuine interest in the concept. Understanding the fundamentals of cryptocurrency investment will help you get started.