Ethereum (ETH) has made many people millionaires. This is why millions of people have started considering investing in Ethereum (ETH) and cryptocurrencies as a whole.
The cryptocurrency market became a cash cow in 2021 after several digital coins experienced rallies in the first three quarters of the year.
To those who missed out on huge gains, investing in Ethereum (ETH) which is next in line on the ranks when market valuation is considered has become the new norm.
Billions of dollars are being poured into the digital asset daily. For investors with fewer amounts of money to risk, the question they want to be answered is what might happen if you invest $100 in Ethereum today?
If you invest $100 in Ethereum (ETH) today and the value of the native asset of the Ethereum ecosystem increases due to increasing demand by investors, which increases your investment from $100 up to $400, you stand a chance of making $300 in profit.
This is called portfolio gains since Ether (ETH) is a digital financial asset associated with the mainstream financial markets.
On the other hand, if the value of Ethereum plunges to new high lows due to a bearish season which forces a lot of investors to let go of their holdings to let say $45, you stand a chance of losing $55.
However, in the world of investing in assets and crypto investing for that matter, selling your holdings is the only way you can calculate the profits or losses made from investing in Ethereum (ETH) or other cryptocurrencies.
To help you learn about the Ethereum crypto project and how you can invest in Ethereum (ETH), Trading Education has hundreds of articles on the first-mover of smart contracts technology.
Therefore, follow the article to detail and gain extensive insights that will guide your decisions on investing in Ethereum.
Content:
If You Invest $100 In Ethereum Today, What Happens?
Can I Invest $100 In Ethereum (ETH)?
What Makes Ethereum So Valuable?
How To Invest $100 In Ethereum (ETH)
Will Investing $100 In Ethereum (ETH) Make You A Millionaire?
What To Consider When Investing $100 In Ethereum?
Should You Invest In Ethereum?
If You Invest $100 In Ethereum Today, What Happens?
The price of Ethereum (ETH) has been soaring since the beginning of last year when it traded for $737.71 on 1st January 2021.
So, if you were to invest $100 in Ethereum today, there is a huge chance that the bulls that have engulfed the crypto market could lead you to reap huge gains in the future.
At the time of writing, the value of Ethereum keeps rising daily. Ethereum (ETH) has returned 113,922.55% for traders and investors who believed in the possibilities of the king of decentralized finance (DeFi) right from the time it became a tradable token in 2015.
The increased demand for Ether (ETH) has taken the market capitalization of the cryptocurrency to more than $385 billion.
As new traders and investors become entranced with the potential of the Ethereum ecosystem and its importance in the creation of decentralized applications (DAPPS), stablecoins, and non-fungible tokens (NFTs), the value of Ether will continue to soar higher.
In addition to this, Ethereum can easily be accessed on all the largest cryptocurrency exchanges by daily volume (Binance, eToro, Coinbase, Huobi Global, Kraken, BitStamp, Bittrex, Coinmama, BitFinex, Gemini, OKEx, FTX, Mandala Exchange, and Bisq).
This way, you are secured knowing your Ether (ETH) holdings are safe from pumps and dumps which could see it trade below insignificant prices.
Aside from this, the valuation of the cryptocurrency continues to benefit from innovations on Ethereum’s ecosystem. There is 9.1 million Ether (ETH) locked in decentralized finance (DeFi).
The DAPPS with the most value locked such as Aave, Curve Finance, Compound, Uniswap, SushiSwap, and Yearn Finance are some of the best performing products in the space. They are all housed on Ethereum.
Since Ether (ETH) is needed to oversee all activities in its ecosystem, it gains extensive mileage and usage through millions of Ethereum users.
Moreover, Ethereum also contributes a huge part of the volume non-fungible tokens continue to see in 2022.
These are reasons why analysts and experts at Wallet Investor and FX Leaders believe Ethereum (ETH) has a huge potential in a saturated market of more than 17,000 tokens.
Short Term: According to the experts at Wallet Investor, Ethereum (ETH) could reach the best possible price of $7,287.710 by the end of 2022. Experts at FX Leaders believe drivers such as the positive effects of the London Hard Fork, war on cryptos, and positive market sentiment could propel Ether (ETH) to trade at the best possible price of $6,000 by the year’s end of 2022.
Medium Term: Wallet Investor foresees ETH reaching the maximum price of $10,962.50 by the close of 2023. FX Leaders estimates ETH to reach the maximum price of $8,000 by the close of 2023 based on drivers such as safe-haven status, hawkish central banks, and the success of Ethereum 2.0.
Long Term: Wallet Investor believes the novel token of the Ethereum ecosystem can trade for the best possible price of $15,114.90 on the last day of 2024. FX Leaders think Ethereum thriving on drivers such as further upgrades, positive crypto market sentiment, and global politics could settle at $20,000 on 31st December 2024.
Investing $100 in Ethereum (ETH) could bring returns of more than 85.24% in the short term, more than 238.43% in the medium term, and more than 517.47% in the long term.
But you may be like thousands of unsophisticated traders and investors yearning for an entry in the crypto space who ask the question, can you really invest $100 in Ethereum (ETH)?
Let us find out.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Can I Invest $100 In Ethereum (ETH)?
You can invest as little as $100 in Ethereum.
The fact of the matter is, Ether (ETH) and all cryptocurrencies followed the path of Satoshi Nakamoto’s Bitcoin.
Therefore, they all possess the elements of divisibility.
Ether can be divided into eight (8) decimal points. This means that you do not have to buy a whole Ether (ETH) if you do not have the budget to facilitate such a transaction.
In reality, your $100 investment can afford about 0.03087344 ETH.
If you adhere to the golden rule of trading and investing in Ethereum and other cryptocurrencies which goes, time in the market is better than timing the market, you could reap enormous returns in the long term.
But before you invest in Ethereum (ETH) with $100 or any other amount you have set up to test digital currencies, you should know what Ethereum is. This will embolden you to know if Ethereum is an attractive investment and still has the confidence of investors.
What Is Ethereum?
Ethereum is the second most popular and second-largest cryptocurrency by market capitalization. Its native asset, Ether (ETH), is second only to Bitcoin (BTC) when daily trading volumes are analyzed by experts.
In the new world of financial technology, Ethereum leads the pack of blockchain technologies that have the aim of revolutionizing all aspects of the centralized financial system.
Proposed by Vitalik Buterin and seven (7) others in 2013 and crowdfunded in 2014, Ethereum’s network went live on 30th July 2015.
Ethereum comprises three (3) entities that ensure its effectiveness and survival in an ever-increasing crypto world.
They are the Ethereum Ecosystem (houses the Ethereum Network), its cryptocurrency (Ether), and the Ethereum Foundation (a non-profit organization dedicated to supporting Ethereum and related technologies).
After appearing on cryptocurrency exchanges on 7th August 2015, Ether had an initial value of $0. Currently, Ether's recorded all-time high still stands at $4,891.70 on 16th November 2021.
Once you buy Ethereum on centralized exchanges such as eToro, Coinbase, Mandala Exchange, and through online financial services wallets such as PayPal and Skrill, you are entitled to store your holdings in a digital wallet. This wallet can only be accessed through private keys. These keys can be set by you.
On the other hand, if you decide against storing your Ether holdings on the aforementioned places and choose other digital wallets such as Trust Wallet, MetaMask, Trezor One, Ledger Nano S, and Exodus among others, a random set of names/digitals will be provided to you. Your wallet can only be accessed through these keys.
On cryptocurrency exchanges and online financial systems with crypto packages, in the event of a loss of your private keys, your password can still be reset. As you have already experienced the resetting of passwords for emails and social media accounts, a link will be sent to the email you earlier input during the signing up process. In addition to this, a 4 to 6 pin code could be sent to the contact number that is linked to your wallet. Once you follow the processes involved, you can regain access to your account.
The same cannot be said for wallet providers. TrustWallet, MetaMask, and the others normally provide 12 words that are arranged in a particular order.
In the case, you fail to write this pattern down or you lose the sheet of paper or diary that held this important information, there is little chance of you regaining access to your account.
Editor’s Note: Hold onto your private keys with all your might.
The creation, storage, distribution, and trading of digital currencies like Ether employs a decentralized ledger system which goes by the popular term blockchain. Payments on such systems are facilitated through peer-to-peer (P2P) technology.
To maintain and update the protocol to meet the modern stands of decentralized finance and more importantly, scalability, scarcity, and interoperability, Ethereum primarily relies on upgrades to its network.
Ethereum featured strongly in DAPP RADAR’s 2nd Quarter Report on the crypto finance world in terms of being the most used network when volumes accumulated on the use of DAPPS, NFTs, and Stablecoins are considered.
To give you an extensive understanding of how Ether works as a financial instrument, let us consider early buyers of the coin.
Those who purchased Ether at $737.71 on the first day of the year have seen more than 400% returns.
In such a case, a $100 investment would have been worth $500 by October. Those who invested $1,000 have seen their investments spike to $5,000, $10,000 turned to $50,000, $100,000 has resulted in $500,000, and a $1,000,000 investment is now worth more than $5,000,000.
Depending on the amount of money you are willing to invest in Ethereum (ETH), the returns that could befall you lies in thousands and millions of dollars.
Whatever happens, get to know more about the pros and cons of investing in Ethereum before you risk your $100.
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What Makes Ethereum So Valuable?
Ethereum, like all digital currencies, holds no intrinsic value.
This is because Ethereum is not backed by any physical asset such as gold, diamond, or silver.
Instead, its value is determined through the eyes of speculators.
The real value of Ethereum is determined by demand.
During bullish seasons such as the periods of February, March, April, May, August, and September 2021, the huge liquidity poured into Ether (ETH) saw the cryptocurrency reach new market valuations.
On the other hand, during bearish cycles such as the year 2018, the peak of the pandemic (March and April 2020), the third week of May, June, and July 2021 when investors let go of their investments due to huge sell-off by long term holders, confidence in Ether (ETH) went down. The resultant effect was a drop in the market value of the digital coin.
Because of its status as a cryptocurrency and a much wider crackdown on all activities related to the usage of digital currencies, no government or central bank supports Ether as a legal tender.
Currently, there are no physical representations of Ether.
It can only be used to purchase products digitally from online merchants that list the token as a payment method.
Yet, Ethereum is among the highly ranked and valuable cryptocurrencies on the market.
Ranked 2nd on the list of the top 100 digital assets globally, Ethereum is more valuable than mainstream companies such as Johnson & Johnson, Walmart, Bank of America, MasterCard, PayPal, Walt Disney, Adobe, Netflix, Oracle, Nike, Toyota, Comcast, Coca Cola, Shopify, AT&T Verizon, and PepsiCo whose market capitalization is below $455 billion.
Many proponents of the Ethereum project view it as the future of finance.
One of such experts is the co-founder of the digital asset investment company Magnetic, Megan Kaspar.
At the start of 2021, Kaspar made calls that based on the potency of the Ethereum ecosystem, its novel token, Ether (ETH) could benefit by trading in the mid $3,000 by the close of the year.
The digital coin surpassed that and crossed into the $4,000 milestone in just 5 months after the prediction.
The same expert believes a shift from the high carbon emission centered proof-of-work (POW) system to an eco-friendly proof-of-stake (POS) system could push Ether to a minimum of $8,000 and a maximum of $10,000 in the future.
Although there are several coins on the market, Ether (ETH) benefits from a pool of activities that will continuously improve its valuation. With more demand, Ether could have a market capitalization of $1 trillion in the future. Investing in Ethereum in the long term could see you benefit from such a rally.
How To Invest $100 In Ethereum (ETH)
There are several ways and places through which you can invest $100 in Ethereum (ETH).
Based on our experience trying to find the right place for our clients we encountered issues with fees, anonymity, ease of use, regulatory compliance, limits, insurance, customer service, and reputation.
As a result, the exchange we recommend for your trading and investing $100 in Ethereum is eToro.
Although the main thesis of this article is, what might happen if you invest $100 in Ethereum today, you can invest any amount of money that meets your investment budget.
The only vital thing to watch out for is the minimum since we advise our clients to trade 5% to 10% of their total budget periodically. Since eToro and other exchanges have affordable minimums, you can start investing in Ethereum with $100.
Follow the steps below to set up an eToro account.
Firstly, sign up for an eToro account (full name, email, and residential address, as well as regular contact number).
Secondly, verify your account (government ID and bank statement).
Thirdly, deposit funds (bank wire transfer, cards, and wallets such as PayPal/Neteller/Skrill/Rapid Transfer/iDEAL).
Fourthly, navigate to the Ethereum page (on this page, you can buy ETH).
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Will Investing $100 In Ethereum (ETH) Make You A Millionaire?
Investing $100 in Ethereum could make you a millionaire if the cryptocurrency tests new milestones.
Fortunately, Ether (ETH) has recorded more than $10 billion in daily trading volume for a while now, so anything is possible.
For understanding, let us use simple mathematics to find out how a $100 ETH investment could turn into a millionaire maker.
At $100, you can purchase a 0.03087344 ETH coin.
You can become a millionaire if ETH trades at $40,000,000 (yes $40 million).
With 0.03087344 ETH in holdings and a price of $40 million, simple mathematics in the form of multiplication can provide the million statistics.
$40,000,000 multiplied by (×) 0.03087344 totals $1,234,937.
Millions of people still consider Ethereum to be a high-risk investment due to the unpredictable nature of cryptocurrencies. With that said, Ethereum has become too popular to fail. The easy accessibility of the coin on major exchanges and the demand it receives from traders and investors which is reflected in trading volume certifies Ethereum (ETH) as a must-have digital asset on any portfolio.
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What To Consider When Investing $100 In Ethereum?
When investing $100 in Ethereum (ETH), it would be in your interest to consider the following.
Virtual Currencies and Blockchain Technology Is a New Concept
At the time of writing, more than 90% of cryptocurrencies have returned at least 100% for their investors. This doesn’t mean that Ether (ETH) and other digital currencies have been widely accepted as a medium of exchange globally. The reason why "cryptocurrency" yields millions of results in a matter of seconds on search engines such as Google, Bing, and Yahoo is a reflection of the daily interest people have begun to show in the new asset class. Therefore, investing $100 does not mean you have found a get rich scheme. No one knows the future of digital currencies; invest what you can afford to lose.
Know Your Actual Costs Involved
Does your preferred exchange charge high depositing and transaction fees? You must figure this out before investing in Ethereum. This information is highly invaluable in your quest towards making a maximum purchase of ETH with your hard-earned $100. If an exchange charges too much, you should search for exchanges that can meet your rate as a novice investor.
Know Your Risk Tolerance
Can you afford to lose $100? Is $100 an insignificant sum that does nothing to your savings account? Should a global crackdown force investors to lose confidence in Ether, will you be affected by the loss of your $100 capital?
At the time of writing, Ether was trading below $4,000 but continues to see massive price fluctuations. This is why you should assess your level of risk before investing in Ethereum. If the rewards exceed the risks, you can invest $100 in Ethereum (ETH).
Should You Invest In Ethereum?
YES! As per the price forecast earlier analyzed by experts at Wallet Investor and FX Leaders, Ethereum (ETH) is an asset you should consider investing in.
Although it would have been better to invest in Ether much earlier so that you could have benefitted from the 1st six months rally, it is not too late to invest in the native asset of the Ethereum ecosystem.
Whatever happens, you should know that most investments are centred on risk and reward.
Do the potential rewards of investing in Ethereum exceed the possible consequences of the risks?
With $100 investments in January yielding $400 in gains for several people, Ether (ETH) may be the missing piece on your portfolio.
eToro – The Best Platform To Buy Ethereum
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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