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How to Trade Cryptocurrencies – The Basics of Investing in Digital Currencies

Many people the idea of cryptocurrencies itself or diversification of their portfolio, people from all walks of life are investing in digital currencies. Should you be new to the concept and questioning what’s going on, here are some basic principles and considerations for investment in cryptocurrencies.

What cryptocurrencies are available and how do I get them?

With a market cap of around $278 billion, Bitcoin is considered the most established cryptocurrency. Ethereum is second with a market cap of over $74 billion. Besides these two currencies, there are numerous of other options as well, including Ripple ($28B), Litecoin ($17B), and MIOTA ($13B). 

Becoming first to market, there are a great number of exchanges for Bitcoin investment all over the world. BitStamp and Coinbase are two well-known US-based exchanges. Bitcoin. de is an established European exchange. Should you be considering trading other digital currencies along with Bitcoin, then a crypto industry is where you will find all the digital currencies in one place. Here is a collection of exchanges according to their 24-hour trade amount.

What options do I actually have to store my money?

Another consideration is storage of the cash. One option, of course, is to store it on the exchange to buy them. However, you will have to be cautious in selecting the exchange. The popularity of digital currencies has resulted in many new, unknown exchanges popping up everywhere. Check out do your due persistence therefore you can avoid 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 permit you store Bitcoins and several other digital currencies as well.

Can be the market like and just how can I find out more on it?

The cryptocurrency market changes a lot. The unpredictable nature of the market makes it more best suited for a long-term play.

There are many founded news sites that record on digital currencies, including Coindesk, Business Insider, Lieu Telegraph, and Cryptocoin Information. Besides these websites, there are also many Forums accounts that tweet about digital currencies, including @BitcoinRTs and @AltCoinCalendar.

Digital stock markets try to disrupt the traditional currency and commodity market. While these currencies still have a long way to travel, the success of Bitcoins and Ethereum have proven that there is genuine interest in the concept. Understanding the principles of cryptocurrency investment will assist you to start in the right way.

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