Is Ethereum A Good Investment And Should I Invest in Ethereum?

Last Updated September 3rd 2020
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Investing In Ethereum : Getting Started

Shall I Invest in Ethereum? Is Ethereum A Good Investment?

If you are new to the world of Ethereum investing, you might be wondering if Ethereum is a good investment or shall I invest in Ethereum?. Well, let’s break all Ethereum-related myths circulating online before you consider investing in Ethereum.

So, what is Ethereum? Ethereum is one of the most popular open-source platforms that employ blockchain technology.

In fact, Ethereum is the second-largest crypto platform by market cap after Bitcoin. Ethereum is used for ether, its own cryptocurrency, which is a good investment option. Ethereum supports not only its currency but different tokens, such as ERC-20.

That said, Ethereum has numerous applications beyond cryptocurrency trading. Ethereum is not only a decentralised platform but a programming language. It can create decentralised applications or dApps that can help users make agreements and payments directly with each other without a third party. In fact, Ethereum is the king of smart contracts.

Getting Started With Ethereum Investing

To start investing in Ethereum and/or other cryptocurrencies you first need to register online with an exchange which will allow you to buy and invest in Ethereum. An exchange broker is an online platform that enables you to buy and sell Ethereum as well as any other cryptocurrency that they have listed.

If you want to buy and invest in Ethereum quickly and easily with your credit card check out Etoro Exchange!

Is Ethereum A Good Investment?

As Ethereum is the second-largest blockchain platform, many traders believe Ethereum is a good investment compared to other cryptos. Despite all the ups and downs in Ethereum’s history, experts believe that Ethereum price could grow further in the long-term.

One of the factors that will influence investing in Ethereum is Ethereum 2.0, the second iteration of Ethereum. Ethereum 2.0 will focus on energy efficiency and staking instead of mining. Note that proof of stake involves the active transaction validation and network support by holding funds in a crypto wallet in order to ensure safety.

Another reason to consider investing in Ethereum is the increasing use of blockchain technology, which attracts more and more successful crypto traders in 2020. Such technology can facilitate online payments, loan distribution, and commodities trading.

Should I Invest In Ethereum?

is ethereum a good investment

Why Should I consider investing in Ethereum? well. Ethereum is an innovative technology that can change the whole world. To be more precise, Ethereum has introduced dApps and smart contracts that allow users to make transactions without a middle man. Thanks to the introduction of smart contracts, Ethereum can revolutionise computer programming and digital ownership as a whole. 

People will be able to buy different assets from all over the world without dealing with banks and bureaucracy. Ethereum can give people tokenization of artwork, patents, mortgages, person-to-person transactions, and even voting. 

No surprise that according to data provided by the World Economic Forum, up to 10% of the global Gross Domestic Product globally will be facilitated via blockchain technology by 2025-2027.

Ethereum can support not only individuals but businesses around the world by providing improved interconnectivity. This technology can foster innovations, such as crypto collectibles, blockchain-based healthcare records, sustainable energy sharing, and so on and on.

Because Ethereum is decentralised, it’s believed Ethereum can also help people target censorship and run uncensorable apps to keep societies informed.

On top of that, Ethereum’s cryptocurrency’s ether is one of the cryptocurrencies rising in popularity. The great news is that unlike Bitcoin, Ethereum is uncapped. There are around 107,715,579 ether in circulation, and these numbers are increasing. 

Here we should note that programmers are also compensated in ether coins to run the protocol on their computers and help the network remain safe and effective.

Last but not least, diversification matters in the world of trading, which is enough of a reason to invest in Ethereum. After all, Ethereum is not only a cryptocurrency but an innovative platform for smart contracts, tokens, and decentralised apps. 

Should I Invest In Bitcoin Or Ethereum?

Ethereum is the second-largest currency after Bitcoin, and as explained above, there are many reasons to invest in Ethereum instead of Bitcoin. Though both Ethereum and Bitcoin use distributed ledgers and tokens, Ethereum has some advantages over Bitcoin, which attracts traders from all over the globe. 

As mentioned above, there are more tokens in circulation than bitcoin, and it’s easier to obtain ether at a shorter block time. To be more precise, it takes up to 15 seconds to get ether, compared to bitcoin transactions that take between 10 minutes and one day.

Because Ethereum has its own programming language, it is used not only as a currency and transactions but as a way to run decentralised applications, monetise work, and provide ownership. Its unique structure to run smart contracts is actually one of the most important aspects that make Ethereum a good investment option.

A clear example of the importance of Ethereum is the innovative Ethereum Blockchain as a Service, presented by Microsoft Azure and ConsenSys. It allows for financial services customers and developers to have a flexible and safe cloud-based blockchain environment.

Interestingly enough, many crypto games are also based on Ethereum, which makes them an attractive investment option. One of the most popular games is CryptoKitties that allows gamers to breed and trade digital cats.

How Much Could Ethereum Be Worth?

Given that Ethere’s main purpose is not to become an alternative to global currencies but to facilitate smart contracts and applications, many experts see a huge potential in Ethereum. Some experts predict that an ETH token may reach $10,000 and over a trillion dollar market cap.

Though making crypto predictions is hard, the demand for decentralised finance makes experts believe that Ethereum might rise again. Based on price projections and Fibonacci extensions, Ethereum experts claim it may reach extreme highs in the next five years.

For instance, some predictions suggest that between 2023 and 2025 Ethereum’s potential high might be $50,000, while its potential low might be $3,500. As a result, many crypto traders may take advantage of such price swings.

Who Should Include Ethereum In Their Portfolios?

  1. Day traders: Ethereum has been known to have multiple-percentage swings in one day, making it a good option for day traders who believe they know what its short-term movements will be.
  2. Cryptocurrency traders: Ethereum is the second well-known cryptocurrency, and therefore, many crypto traders buy it as part of their cryptocurrency portfolio.
  3. Blockchain enthusiasts: Since Ethereum is the second major application of blockchain technology, those who have faith in the technology and its potential impact on the tech and financial industries, could consider buying ethereum.
  4. Forex traders: The cryptocurrency market is perceived by some as a safe-haven for when traditional currencies become too volatile. Since Ethererum is more separated from mainstream markets than other crypto, it could become the new gold safe-haven for some traders.

Is Investing In Ethereum Risky?

investing in ethereum

Despite the promises that Ethereum shows and the support of the crypto development world, it’s not a secret there is a lot of pressure from regulators and banks regarding crypto trading. In fact, it’s the regulatory pressure around the so-called initial coin offerings that can make any cryptocurrency drop significantly.

Another obstacle is the fact that blockchain technology may be difficult to understand for people who are not traders or developers. Some may fall victim to crypto scams as well. 

That’s why proper crypto trading education is essential to help you understand what Ethereum is and how to invest in Ethereum successfully. An online course is a wonderful opportunity to understand the basics of crypto trading, find a reputable broker, and establish a successful trading strategy.

Should You Invest In Ethereum?

Invest in Ethereum or any kind of investing can be very risky if you don’t know what you’re doing, especially during uncertain times. You may be asking yourself, “should I buy Ethereum right now?” So here’s a tidbit, investing your money doesn’t have to be complicated.

While no investment is risk-free, investing in Ethereum has genereated about 40% return over the last two years. Whether you’re new to Ethereum investing or just curious about how to make the most of your investment, understanding what to know before investing in Ethereum is critical.

In the end, the final decision comes down to you. What kind of investor do you want to be? Figure out the answer to that question, you’ll definitely know if Ethereum is a good investment!

If you're feeling inspired to start investing in Ethereum, you may be pleased to know that etoro provides the ability to trade with Crypto assets and CFDs on up to 90+ cryptocurrencies. 

Further Reading:

1. Ethereum Vs. Bitcoin: Is Ethereum a Better Investment than Bitcoin?

2. Ethereum Dominates Crypto With ERC-20 Tokens: Here’s How

If you liked our article Is Ethereum A Good Investment And Shall I Invest in Ethereum?, please give us a like and share it with anyone who might be interested in Ethereum. If you are considering investing in Ethereum, share your thoughts in the comments below!

Disclaimer: Cryptocurrencies are highly volatile. Your capital is at risk and Past performance is not an indication of future results.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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