How to Trade Cryptocurrencies - The Basics of Investing in Digital Currencies3942986
Whether it's the idea 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 basic ideas and considerations for investment in cryptocurrencies.
What cryptocurrencies are available and how do I buy them?
With a market cap of about $278 billion, Bitcoin is the most established cryptocurrency. Ethereum is second with a market cap of more than $74 billion. In addition to these two currencies, there are a number of other options as nicely, such as Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Being first to marketplace, there are a lot of exchanges for Bitcoin trade all more than the globe. 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 along with Bitcoin, then a crypto marketplace is exactly where you will discover all the digital currencies in one location. Here is a list of exchanges according to their 24-hour trade volume.
What choices do I have to store my cash?
An additional essential consideration is storage of the coins. One choice, of course, is to shop it on the exchange where you buy them. However, you will have to be careful in choosing 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 steer clear of the scammers.
Another choice 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 store Bitcoins and a number of other digital currencies as well.
What's the marketplace like and how can I learn more about it?
The cryptocurrency market fluctuates a lot. The volatile nature of the market makes it much more suited for a long-term play.
