Whether it’s the idea of cryptocurrency itself or diversification of their financial portfolios, people from all kinds of backgrounds are investing in digital currencies. If you’re new to the concept and wondering what this is all about, here are some basic concepts and considerations for investment in cryptocurrencies.
What cryptocurrencies should I consider and how do I invest in them?
With a market cap of about $140 billion at the time of writing, Bitcoin is the most established cryptocurrency. Ethereum comes a distant second with a market cap of over $14 billion. Apart from these two currencies, there are many other options as well, including Ripple ($7B), Litecoin ($2B) and Tether ($4B).
Being the first to market, there are a lot of exchanges for Bitcoin trading all around the world. Coinbase and BitStamp are two well-known exchanges based in the USA. Bitcoin.de is a well-established exchange in Europe. If you would like top trade other digital currencies as well as Bitcoin, then a crypto marketplace is where you will find all these digital currencies in one place. Check out our prices page for current trading conditions for these currencies HERE.
What are my options for storing my money?
Another important point to consider is the storage of coins. Of course, one option is to store them on the exchange where you bought them. However, you will need to be careful in choosing the exchange. The popularity of digital currencies has resulted in many new, unknown and untested exchanges appearing everywhere. Take time to do your due diligence so you can avoid being scammed. It’s important to understand that once cryptocurrencies are transferred those transactions cannot be reversed..
Another option is to store them yourself. One of the safest options for storing your investment is in hardware wallets. Companies like Ledger provide inexpensive products that allow you store Bitcoin and many other digital currencies safely and securely.
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How can I learn more about the market?
As anyone who watches the news will know, the cryptocurrency market fluctuates considerably. The volatile nature of the market therefore makes it more suited for a long-term investment play.
There are many established news sites that report on digital currencies: this one of course but also Business Insider, Coin Telegraph, and Coindesk. Alonside these sites,you can also pick up the latest news on Twitter from accounst such as @BitcoinRTs and @AltCoinCalendar.
Digital currencies will inevitably disrupt the traditional currency and commodity marketplaces. While these currencies are still in their infancy, the success of Bitcoin, Ethereum and other currencies have proved that there is a genuine long-term interest in the concept. Understanding the basics of cryptocurrency investment will help you in your investment journey. Keep watching this site for more information and insight.
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