Before buying Ethereum, you should consider researching the coin's fundamentals, reviewing your portfolio and setting a budget.

Last Updated October 15th 2021
6 Min Read

Want to buy ethereum? Here's what you need to know

Ethereum has solidified its place as one of the most important cryptocurrencies in the market. But is investing in ETH a good idea? Before answering that question, let us briefly go over what Ethereum is.

Ethereum is more than just a cryptocurrency. It is the first platform that offers decentralized services on a blockchain and not only decentralized transactions. People can launch and run decentralized applications (dApps) through sets of computer codes, known as smart contracts.

So, is Ethereum a good investment?

Generally, Ethereum can be a very smart and lucrative investment. Ethereum has a lot of potential to grow in the future, so the odds are that Ethereum is a good buy. Actually, Ethereum is one of the most preferred cryptocurrencies to invest in as there are high expectations for adoption.

 

Should I Buy ETH In 2021?

Ethereum is expected to reach new highs during 2021. According to Digitalcoin, ETH could go as high as $5,929 by December 2021. This indicates that even now could be a good time to invest in Ethereum. 

The number of dApps and DeFi (decentralized finance) services is growing on the Ethereum network. And with this growth ETH is also expected to grow in value too. 

Ethereum network will undergo an upgrade, known as ‘Ethereum 2.0’, which includes three phases. The first phase known as ‘Beacon Chain’ was integrated on 1st December 2020, when ETH was around $605. The other phases are expected to be integrated sometime in the future. 

If the implementation of the first phase was one of the reasons why Ethereum appreciated in the first three months of 2021, then there is no reason not to expect the same when the other phases are implemented. Thus, investing in ETH in 2021 could prove to be a very smart investment.

Moreover, on the 31st of December 2020, ETH was approximately $740 per coin. Then in May 2021, ETH reached a new all-time high of roughly $4,362. Consequently, if someone would have invested on the 1st of January, their investment would have increased more than 5 times. Hence, at the beginning of 2021, Ethereum was a very good investment.

Is It Better To Buy Bitcoin Or Ethereum?

Unlike Bitcoin, Ethereum offers many more services, and many investors find Ethereum’s features highly valuable. So, it is safe to conclude that Ethereum is a better investment for innovative people who are looking to extend their services in the Ethereum platform. 

However, Bitcoin has shown more stability and is far more popular. Bitcoin’s popularity has put the cryptocurrency on the verge of consistent increases because of growing investor interest.

Moreover, Bitcoin has a limited capacity for mining at 21 million Bitcoins. With 18 million Bitcoins already mined, it is expected that Bitcoin may consistently rise over the coming years, especially when halvings occur (the next Bitcoin halving will occur in 2024).

On the other hand, Ethereum transactions are much faster than Bitcoin transactions. With time being very valuable in the crypto market, some investors favour the efficiency of Ethereum. Additionally, the Ethereum 2.0 upgrade is expected to increase the ease of using the Ethereum platform even more.

Such upgrades make the growth of Ethereum’s value inevitable in the future. Ethereum does not have a limit on the number of coins that can be mined, and 114 million tokens have already been mined. Some might favour this feature, but some might feel that Ethereum may not be able to grow as Bitcoin has because of this. 

All in all, whether it is better to invest in Bitcoin or Ethereum depends on the personal choice and goals of an individual. Moneywise, Bitcoin has more potential. Innovation-wise, Ethereum is the optimal choice.

Is It Safe To Invest In Ethereum?

As with every cryptocurrency, investing in Ethereum entails risk. Whether this risk will be profitable is never certain due to the sudden changes that can occur in the market. Overall, ETH has a lot of potential to increase in price in the long run, making the investment safer if investors are patient enough.

In terms of security, the Ethereum platform and its blockchain are very safe and invulnerable to online attacks. Blockchain technology makes it technically impossible for a hacker to manipulate the data on Ethereum. Also, the Ethereum network is continuously upgraded to increase efficiency and remove any flaws in the system.

Overall, investing in Ethereum is safe if the investments are done through legit crypto sites.

Is Ethereum A Good Long-Term Investment?

The increase in price when phase 1 of Ethereum 2.0 began implementation in December 2020, suggests that there might be further increases when phases two and three are implemented. 

Furthermore, if Ethereum founder Vitalik Buterin and his crew ever decide to put a limit on the maximum amount of tokens that can be mined, it would change the inflating nature of Ethereum and might potentially cause an increase in the value of ETH. 

Digitalcoin predicts that Ethereum price can go as high as $17,539.28 by 2028, making ETH a worthwhile investment for the long-term.

Ethereum (ETH) price prediction for the following years. Source: digitalcoinprice.com  

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Key Points

  • Ethereum has solidified its place as one of the most important cryptocurrencies in the market.
  • Ethereum has lots of potential to grow in the future, so odds are that Ethereum is a good buy
  • According to Digitalcoin, ETH can go as high as $5,929 by December 2021.
  • It is safe to conclude that Ethereum is a better investment for innovative people who are looking to extend their services in the Ethereum platform.
  • Investing in Ethereum is generally safe for the long term. The Ethereum platform is secure enough to prevent data from being manipulated.
  • Ethereum network will undergo an upgrade which includes three phases, known as Ethereum 2.0
  • Ethereum transactions are much faster than Bitcoin transactions
  • Moneywise, Bitcoin has more potential. Innovation-wise, Ethereum is the optimal choice
  • Digitalcoin predicts that Ethereum price can go as high as $17,539.28 by 2028, making ETH investments worthwhile for the long-term.
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