How to Trade Cryptocurrencies - The Basics of Investing in Digital Currencies9256954
Whether or not it is the idea 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 idea and questioning what's going on, here are some basic concepts and considerations for investment in cryptocurrencies.
What cryptocurrencies are accessible and how do I purchase them?
With a market cap of about $278 billion, Bitcoin is the most established cryptocurrency. Ethereum is second with a marketplace cap of more than $74 billion. Besides these two currencies, there are a number of other choices as well, including Ripple ($28B), Litecoin ($17B) and MIOTA ($13B).
Becoming initial to market, there are a lot of exchanges for Bitcoin trade all over 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 along with Bitcoin, then a crypto marketplace is where you will find 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?
An additional important consideration is storage of the coins. 1 option, of course, is to shop it on the exchange exactly where you purchase them. However, you will have to be cautious in choosing the exchange. The recognition of digital currencies has resulted in many new, unknown exchanges popping up everywhere. Take the time to do your due diligence so you can avoid the scammers.
An additional 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 nicely.
What's the market like and how can I learn much more about it?
The cryptocurrency marketplace fluctuates a lot. The volatile nature of the market makes it more suited for a long-term play.
