How to trade cryptocurrencies – the basics of investing in digital currencies

Whether it is the idea of ​​cryptocurrency itself or the diversification of their portfolio, people from all walks of life are investing in digital currencies. If you’re new to the concept and wondering what’s going on, here are a few basic concepts and considerations for investing in cryptocurrencies.

What cryptocurrencies are available and how do I buy them?

With a market capitalization of about $ 278 billion, bitcoin is the most recognized cryptocurrency. Ethereum is second with a market capitalization of over $ 74 billion. In addition to these two currencies, there are a number of other options, including Ripple ($ 28 billion), Litecoin ($ 17 billion) and MIOTA ($ 13 billion).

Since we are the first on the market, there are many stock exchanges for bitcoin trading around the world. BitStamp and Coinbase are two well-known exchanges based in the United States. Bitcoin.de has established a European stock exchange. If you are interested in trading other digital currencies together with Bitcoin, then there is a crypto market where you will find all digital currencies in one place. Here is a list of stock exchanges according to their 24-hour trading volume.

What options do I have to save my money?

Another important issue is the storage of coins. One option, of course, is to store them on the stock exchange where you buy them. However, you will need to be careful when choosing an exchange. The popularity of digital currencies has led to the emergence of many new, unknown stock exchanges everywhere. Take the time to exercise your due diligence so you can avoid scammers.

Another option you have with cryptocurrencies is that you can store them yourself. One of the safest options for saving your investment is hardware wallets. Companies like Ledger also allow you to store Bitcoin and several other digital currencies.

What is the market like and how can I find out more about it?

The cryptocurrency market fluctuates a lot. The volatile nature of the market makes it more conducive to long-term play.

There are many established news sites that report on digital currencies, including Coindesk, Business Insider, Coin Telegraph and Cryptocoin News. In addition to these sites, there are many Twitter accounts tweeting about digital currencies, including @BitcoinRTs and @AltCoinCalendar.

Digital currencies aim to disrupt the traditional currency and commodity market. Although these currencies still have a long way to go, the success of Bitcoin and Ethereum has proven that there is a genuine interest in the concept. Understanding the basics of investing in cryptocurrencies will help you go in the right direction.