How to trade cryptocurrencies: the basics of investing in digital currencies
Whether it’s the idea of cryptocurrencies itself or diversifying your portfolio, people from all walks of life are investing in digital currencies. If you’re new to the concept and wondering what’s going on, here are some basics and considerations for investing in cryptocurrencies.
What cryptocurrencies are available and how do I buy them?
With a market capitalization of approximately $ 278 billion, Bitcoin is the most established cryptocurrency. Ethereum ranks second with a market capitalization of over $ 74 billion. In addition to these two coins, there are other options as well, including Ripple ($ 28B), Litecoin ($ 17B), and MIOTA ($ 13B).
Being the first to trade, there are many exchanges for trading Bitcoin around the world. BitStamp and Coinbase are two well-known US-based exchanges. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies alongside Bitcoin, then a crypto market is where you will find all the digital currencies in one place. Here is a list of exchanges based on their 24 hour trading volume.
What options do I have to store my money?
Another important consideration is coin storage. One option, of course, is to store it on the exchange where you buy them. However, you will need to be careful when selecting the exchange. The popularity of digital currencies has led to the emergence of many new and unknown exchanges everywhere. Take the time to do your due diligence so you can avoid scammers.
Another option you have with cryptocurrencies is that you can store them yourself. One of the safest options for storing your investment is hardware wallets. Companies like Ledger allow you to store Bitcoins and various other digital currencies.
What is the market like and how can I learn more about it?
The cryptocurrency market fluctuates a lot. The volatile nature of the market makes it more suitable for long-term play.
There are many established news sites that report on digital currencies, including Coindesk, Business Insider, Coin Telegraph, and Cryptocoin News. In addition to 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 coins still have a long way to go, the success of Bitcoins and Ethereum has shown that there is genuine interest in the concept. Understanding the basics of investing in cryptocurrencies will help you go in the right direction.