How to Trade Cryptocurrencies - The Basics of Investing in Digital Currencies2763850
Whether it is the concept of cryptocurrencies itself or diversification of their portfolio, people from all walks of life are investing in digital currencies. If you're new to the idea and questioning what is going on, here are some fundamental concepts and considerations for investment in cryptocurrencies.
What cryptocurrencies are available and how do I buy them?
With a marketplace cap of about $278 billion, Bitcoin is the most established cryptocurrency. Ethereum is second with a marketplace cap of over $74 billion. Besides these two currencies, there are a number of other options as nicely, including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being first to marketplace, there are a lot of exchanges for Bitcoin trade all over the world. BitStamp and Coinbase are two nicely-recognized US-based exchanges. Bitcoin.de is an established European exchange. If you are interested in trading other digital currencies along with Bitcoin, then a crypto marketplace is where you will discover all the digital currencies in one place. Here is a list of exchanges according to their 24-hour trade volume.
What options do I have to store my money?
Another essential consideration is storage of the coins. One option, of course, is to store it on the exchange exactly where you purchase them. However, you will have to be careful in selecting the exchange. The recognition of digital currencies has resulted in numerous new, unknown exchanges popping up everywhere. Take the time to do your due diligence so you can avoid the scammers.
An additional option you have with cryptocurrencies is that you can store them yourself. 1 of the safest choices for storing your investment is hardware wallets. Companies like Ledger permit you store Bitcoins and a number of other digital currencies as well.
What is the marketplace like and how can I discover much more about it?
The cryptocurrency market fluctuates a lot. The volatile nature of the marketplace makes it much more suited for a lengthy-term play.
