Whether it is the idea of cryptocurrency itself or the diversification of its investment portfolio, people from all walks of life are investing in digital currency. If you are new to this concept and want to know what is going on, here are some basic concepts and precautions for cryptocurrency investment.
What are the available cryptocurrencies and how can I buy them?
Bitcoin has a market value of approximately US$278 billion and is the most mature cryptocurrency. Ethereum ranks second, with a market value 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 in the world that trade Bitcoin. BitStamp and Coinbase are two well-known American exchanges. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies with Bitcoin, you can find all digital currencies in a cryptocurrency market. The following is a list of exchanges based on their 24-hour trading volume.
What options do I have to save money?
Another important consideration is the storage of coins. Of course, one option is to store them in the exchange where they were purchased. However, you must be careful when choosing an exchange. The popularity of digital currencies has led to the emergence of many new, unknown exchanges everywhere. Take the time to do your due diligence so that you can avoid scammers.
Another option for cryptocurrencies is that you can store them yourself. One of the safest options for storing a wallet is a hardware wallet. Companies like Ledger also allow you to store Bitcoin and several other digital currencies.
What is the market like and how can I understand it?
The cryptocurrency market is very volatile. The volatility of the market makes it more suitable for long-term development.
There are many news sites established to report on digital currencies, 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 disrupt traditional currency and commodity markets. Although these currencies still have a long way to go, the success of Bitcoin and Ethereum proves that there is a real interest in the concept. Understanding the basics of cryptocurrency investment will help you move in the right direction.