How to Trade Cryptocurrencies - The Basics of Investing in Digital Currencies6599398
Whether or not it's the concept of cryptocurrencies itself or diversification of their portfolio, people from all walks of life are investing in digital currencies. If you are new to the concept and wondering what is going on, here are some fundamental concepts and considerations for investment in cryptocurrencies.
What cryptocurrencies are available and how do I purchase them?
With a marketplace cap of about $278 billion, Bitcoin is the most established cryptocurrency. Ethereum is second with a market cap of over $74 billion. In addition to these two currencies, there are a number of other choices as well, 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 exactly 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. 1 option, of course, is to shop it on the exchange 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 steer clear of the scammers.
An additional option you have with cryptocurrencies is that you can shop them your self. One of the safest choices for storing your investment is hardware wallets. Companies like Ledger allow you shop Bitcoins and several other digital currencies as nicely.
What is the market like and how can I learn more about it?
The cryptocurrency marketplace fluctuates a lot. The volatile nature of the market tends to make it more suited for a lengthy-term play.
