Trading cryptocurrencies: a basic guide

Trading cryptocurrencies

It turns out that people of all ages and people with different backgrounds are investing in cryptocurrencies. In case you are not familiar with this concept and you want to learn more about this phenomenon, keep reading because we will highlight the basic elements of cryptocurrency investments.

What should you buy?

There are many articles talking about the best cryptocurrencies. Some people in Canada are investing strictly in bitcoins, but there are many people who are also investing in IOTA, Ripple, Ethereum, Litecoin and other coins. Bitcoin is the most popular Bitcoin with a market cap of around 190 billion dollars followed by Ethereum with 102, Ripple with 51, Bitcoin Cash with 28 and Cardano with 16 billion dollars. Due to the fact that Bitcoin appeared first on the market, you can find many more exchanges for this cryptocurrency compared to other currencies. These exchanges are accepting traders from all over the world. There are some Canadian-based exchanges too. Additionally, Canadian residents can use American and EU-based exchanges too. Choose the cryptocurrency you want to invest in and select a well-established exchange.

Where can I store my coins?

Now here’s another thing that you should take into account when you want to buy or sell cryptocurrencies. Namely, you have to store your coins and the options you choose can affect the safety of your money. The most obvious solution is to store your bitcoins or other digital currencies on the exchange where you have bought them in the first place. But, you must be sure that you’ve made the right selection because there were many cases when these exchanges were hacked and people lost their coins. These exchanges are not offering any compensation for the lost coins.

The safer option is to store your coins on your own. Experienced traders recommend the use of a hardware wallet. There are also online Bitcoin wallets like Ledger that promote safety.

What’s the current situation on the market?

As always, the cryptocurrency market is fluctuating and changing at a rapid speed. In a situation like this, it may be a better idea to look for long-term investment options. The huge boost of cryptocurrencies that happened last year was based on hype. This means that you can’t expect to earn a significant amount of money in a short period of time now. Invest the money you can lose in some of the most promising cryptocurrencies and you will probably make a profit in a few months.