Is It Worth Investing In Enjin?

Last Updated August 4th 2021
14 Min Read

Non-fungible tokens (NFTs) became increasingly popular in 2020 as investors and crypto enthusiasts, in general began to take interest. This popularity was in part fueled by the development of gaming cryptocurrencies and ecosystems.

One of the most popular of these is Enjin.

Since its inception, Enjin has become a household name in the industry. It is known as an all-in-one blockchain solution for gamers and developers alike.

Let’s take a look at how it works, how it can benefit gamers and developers, what its strengths are compared to other cryptocurrencies such as Ethereum and Bitcoin, and more.

If you want to buy Enjin quickly and easily, with 0% Commission, check out eToro Exchange!

Contents:

What is Enjin Coin?

Enjin Coin can be used to mint virtual goods like weapons, armour and potions within the Enjin ecosystem. The Enjin Coin is a cryptocurrency or token that can be used within several games and platforms for different purposes. It's not just limited to one game or platform.

The Team at Enjin has big plans for this coin and are building an entire ecosystem around it with the goal of bringing legitimacy to the blockchain space.

Enjin Coin (ENJ) is a token based on Ethereum ERC-20 technology that can be used to mint virtual goods in games and traded for other tokens or cryptocurrencies. Enjin uses its own software development kit and community support to develop communities for blockchain gaming, create wallets, Minecraft plugins, and also build a cryptocurrency gaming exchange. 

The Enjin Coin can be used in multiple different scenarios within the different game platforms it's being integrated into; as an example, if you have a sword on one platform that you purchased with ENJ, you will be able to use that sword in another game or platform that is integrated with Enjin.

Don't Miss: Why Enjin Coin Will Skyrocket 

How Enjin Works 

The Enjin Coin can be used within several platforms as a currency for purchasing virtual goods. These platforms include Minecraft, Ethereum and other cryptocurrencies, Guild Wars 2, World of Warcraft, Runescape, and more.

The Enjin Coin can be used to mint or create virtual goods in a game ecosystem, such as weapons, armour, or accessories that are unique to just that game. The items would contain certain attributes and abilities depending on how they were minted. Using the same example from above with the sword, If you used Enjin Coin to mint a sword, it would be unique to a specific game. That means no other player in the world can have that same sword, and if it was damaged or lost, it cannot be recovered.

The ENJ token also enables buying and selling items within the game ecosystem using smart contracts. With virtual item sales, oftentimes, the seller would have to rely on a third party or escrow service. With Enjin Coin's Ethereum Smart Contracts, this can be avoided entirely. 

Once an item is created and minted within the blockchain ecosystem, it is visible for all players in that game to see, and they can track its history through the time it was minted, sold and traded.

All sales made using Enjin Coin are final, and they can't be reversed or refunded by the seller; which removes risk completely for buyers on both sides of a transaction.

How does Enjin Coin guarantee these benefits?

The Enjin coin will use server-side algorithms to mint and create unique items. The minting process itself is complicated and requires several steps to generate one static, non-duplicable item.

Every single virtual item created on the blockchain has a detailed history that shows exactly when it was made, who made it, and all of its previous owners. This gives players complete control over their items because they can track them at all times.

Before a transaction is made, the exchange of money or cryptocurrency between two parties is handled by an Ethereum smart contract which takes care of the payment and makes sure you get your item(s) without a chance of being scammed by the seller. 

Enjin Coin Price History

Enjin Coin was originally released on October 1st of 2017 with an ICO that lasted until November 1; which raised $18.9 million dollars for the company.

The token sale price of ENJ started at $0.01 and peaked at around $0.4 during its first month before falling down to $0.01 again. It stayed in the $0.02-$0.2 range for most of 2018. The price had a small increase in early January 2019 and reached $0.2158 but quickly fell down to around $0.09 in early August.

There wasn't much price activity until January 2021, when Enjin joined the market-wide bull run and rose to as high as $0.9 in late February 2021.

The most parabolic rise happened between February 22nd and March 18th when Enjin Coin rose from $0.5 to $2.7, representing a 440% gain in just about three weeks. The price decline from this new all-time high happened very quickly but was not devasting. By March 23rd, 2021, ENJ had gone down to $2.1, which is a loss of around 22% in a week.

The price of ENJ quickly recovered, going up to $2.6 on March 31st. There was a small correction in preparation for another all-time high.

On April 9th 2021, ENJ attained its current peak price of $4.00, according to Coinmarketcap. While on its way to the current price of $1.4, Enjin Coin suffered several sharp declines, which have wiped out more than 60% of its value

The biggest drop happened between April 30th and May 23rd, when ENJ dropped from $2.8 to $0.95 per coin. Although it quickly bounced back to $1.9, ENJ was unable to fuel another growth past the $2 mark. The coin struggled and dropped down to $0.91 on June 22nd. 

Since then, ENJ has had a hard time breaking through the $1.5 resistance point and is currently trading at $1.34 with a market cap of $1.1 billion, which is a 2.7% drop from its highest market capitalization. 

Enjin Coin Price Prediction in 2021-2022

While most cryptocurrencies suffered a crash around the end of May when the market-wide bull run that started in January signed out, Enjin's fall came early in April when it plummeted from its ATH to as low as $2.1.

So naturally, the predictions changed fast. Most of the price analysts were confident that the token would finish the year at as high as $10 per token. However, after the gradual decline, these predictions have changed, and we are now seeing less optimistic numbers.

For instance, Digital Coin Price predictions that ENJ might close 2021 at $2.1, which is a 56% gain from the current price. Compared to their previous prediction of more than $5 by the end of the year, we can say this is a bit on the bearish end.

The site also believes that the coin might still not reach $3 by the end of 2022, where it trades at $2.49. Still, this is underwhelming and not something most investors will want to look forward to.

We would expect Wallet Investor to be more optimistic (given its history of mostly bullish predictions), but it is not. In fact, the site predicts that Enjin will end 2021 at $1.95, which is slightly lower than the usually conservative Digital Coin Price.

Wallet Investor doesn’t see much growth throughout the year. It starts in September at $1.53 and gives a drudgy growth that ends at $1.95 in December 2021.

Although there is a slight improvement in 2022, Wallet Investor still doesn't show much progress. It starts the year at $1.94 and ends at $3.5, which is now more than that of Digital Coin Price.

Trading Beasts also doesn't seem excited about the future of Enjin Coin. It predicts that the coin will end 2021 at an average price of $1.33 with a maximum of $1.66 and a minimum of $1.13. This is around the same price that ENJ is trading at now, so it’s not exactly something you want to see after you put your money into Enjin.

The most discouraging part is that Trading Beasts doesn't think ENJ will hit $2 even by the end of 2022. This is clearly bearish, and we do hope that we will see better figures in the next few years.

As you can see from these predictions, no one is really satisfied with the future of Enjin. Even the more optimistic predictions are a far cry from its all-time high.

So, if you are not feeling very confident, you might want to keep from buying Enjn coins until the price direction is more promising.

If the coin recovers from the current consolidation mode, it might go as high as $3 by the end of this year. Otherwise, these are mere predictions, and you shouldn’t rely on them to make important investing decisions. 

How to Invest in Enjin (ENJ)

Being a gaming cryptocurrency, there are more than a few ways you can invest in Enjin. For this guide, we will focus on three of the most common methods. These are;

  • HODLing
  • Trading
  • Staking

Method 1: HODL Enjin (ENJ)

One of the best ways to invest in Enjin is by HODLing. This is where you simply buy and hold your tokens without the need to sell them or trade them in for other forms of currency.

There are many different ways to HODL Enjin, but one of the best places would be on a hardware wallet device such as Ledger Nano S, Trezor, KeepKey and even a mobile phone or PC with the Enjin Wallet.

HODLing on a hardware wallet is the most secure option for storing your ENJ tokens. However, it is also one of the most expensive. It may be worth the cost if you plan to HODL for a long period of time. But if you do not plan on holding onto them for very long, then it may not be worth the investment.

If you prefer a more budget-friendly option, then there are plenty of online wallets that let you store your Enjin Coin on the cloud; which also aligns with HODLing as it is considered by many to be one of the best ways to invest in cryptocurrency due to its safety and stability.

We usually recommend holding for new investors, especially those who are more risk-averse and don’t have a lot of experience with crypto. Holding on to cryptocurrencies for long periods can be very profitable; especially if they increase in price or even just remain stable.

HODLing has many benefits, but it is not without risks. The amount you HODL Enjin will determine how much you end up earning. The more Enjin Coin you have, the higher your potential earnings will be over time.

The risk associated with HODLing is that you may not sell if the market is bearish, which means you could lose out on some of your gains. This can happen especially if a coin has some bad news, a hack or if the overall market is moving downward.

Some investors have also seen their crypto become worthless after their private keys were stolen, which means there is always the risk that something could go wrong, and you could lose all of your money.

The most important thing for new HODLers to do is research; make sure you know what is happening inside your wallet and that you are keeping up with the news related to Enjin Coin so that if something goes wrong, you will have enough information to react quickly.

Method 2: Trading Enjin (ENJ)

Trading is another great way to invest in Enjin and very similar to HODLing, only instead of holding your tokens, you will be trading them for other coins that are more promising; or for fiat currency.

Some people consider trading to be a bit riskier than HODLing due to the fact that it requires constant monitoring and analysis in order to make sure that everything is going according to plan.

There has been a huge market decline during the last few months, which has caused a lot of people to panic sell their Enjin Coins. So, we recommend that if you plan on trading ENJ then do so immediately after purchase because there is a very high chance that the value will lower during your transaction.

There are several trading platforms you can use to trade Enjin, but we think eToro is the most convenient. Here is how you can easily trade Enjin on eToro.

  1. Open an online eToro account and verify your information. 
  2. Deposit some funds into your account. eToro allows a minimum deposit of $200.
  3. Seach for Enjin using the search bar. Alternatively, you can navigate to Top Markets on the navigation bar, click on Cryptocurrencies from the dropdown menu, then look for Enjin (ENJ)
  4. After finding Enjin using either method, click on the Trade option
  5. Enter the amount you wish to use to buy Enjin.
  6. Set required parameters such as stop and leverage 
  7. Click on Open Trade

If, for some reason, you don't like trading with eToro, there are several other exchanges you can use. These include Binance, Gate.io, WazirX, and Gemini.

The best time to trade ENJ on any exchange is at the beginning of the week or on a weekend when there are fewer people trying to trade within the same time frame.

As a caution, we don't usually recommend using leverage when trading because it could cause you to lose all of your money in just one bad trade. While leverage can help you amplify your profits, it can also amplify your losses. 

Method 3: Staking Enjin

Staking Enjin allows you to earn passive income over time. Staking can be done by putting your Enjin Coin into a special wallet that will automatically stake it for you in exchange for transaction fees. As mentioned before, the amount of ENJ you have will determine how much you earn.

Another thing to keep in mind is that staking only works if there is no special event going on in the Enjin network. This means that if there is going to be a big software update, or if something big has just happened (like a hack), you may have to wait for it to finish before your coins are actually able to stake.

Aside from staking ENJ, another way of earning passive income is by holding onto a Multiverse Asset. Unlike staking, these assets will earn you money no matter what is happening in the network.

The best time of year to buy ENJ would probably be around summer time when there are fewer big events that could potentially occur, and therefore your stake may take longer to complete. Otherwise, there is no specific date or time that you should buy Enjin.

Read Also: 12 Reasons Why You Should Invest In Enjin (ENJ) Today

Is Enjin Coin a Good Investment?

While it is too early to tell if Enjin Coin will eventually become a major cryptocurrency, there are some very positive things about the project that show great potential investment. They have several different white label products for developers which can be used in order to implement the blockchain into almost any type of game. 

Developers receive tokens and other benefits when they choose to partner with Enjin, and they also receive support from the company when it comes to setting up their white label solution.

If you were thinking about investing in cryptocurrency (or maybe you already have), it is important to know that an ICO doesn't happen very often where a legitimate blockchain company is attempting to raise funds for its product. It's one thing to invest in a cryptocurrency that was created simply to raise funds, and it's another thing entirely to buy tokens from a company with actual products that already have an established user base.

Enjin Coin has the potential to make you money due to its unique business model, which rewards established companies for implementing its solutions into their games and services. It is important to note that this currency is only used within games and does not function as a general use cryptocurrency.

This means that you should only purchase ENJ tokens if you are looking to invest in virtual goods.

We would definitely recommend investing in Enjin Coin to people who see the potential of blockchain technology and want to support a cryptocurrency created by actual developers. If you don't think that Enjin has what it takes to become a top dog, then you would want to invest elsewhere but keep this token in mind for future reference.

We believe that Enjin Coin can be a successful investment for the following reasons: 

  • They have an established user base in multiple different industries, Enjin has been around since 2009 and is still relevant today
  • They are looking to develop a platform where other blockchain companies can benefit from their white label products
  • There are numerous gaming partnerships already in place
  • The company has a very strong team
  • There is no real competition for ENJ when it comes to blockchain gaming and virtual goods
  • They are focused on improving their products rather than getting rich quick.

Conclusion: So, Should I Buy Engine Coin (ENJ)?

If you are looking to invest in virtual goods, then Enjin Coin (ENJ) is definitely a cryptocurrency that will interest you. They have an established business model which focuses on helping other developers and has the potential to make billions of dollars for top companies that can implement their blockchain technology into their games and services.

On top of this, Enjin Coin has a strong team and is already partnered with many different corporations. They have a fully functional API that can be used by developers to create games and virtual item trading networks, and they are available on exchanges like Binance.

We believe that the potential for this cryptocurrency is extremely high due to its unique business model, but you should only invest if you are willing to take the risk and don't buy any more than you can afford to lose.

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