How To Invest In Ethereum: Is It Worth It?
Many people have grown curious about the crazed world of cryptocurrency as prices soar.
Some investors are cashing in on the lucrative world, but others are waiting to see what happens to the relatively new, and risky, market.
One of the most common currencies is Bitcoin, which is currently worth more than 6,000 per unit!
Luckily, Ethereum is a more affordable option. At under 300 per unit, the newer coin may be worth taking a look at. You probably have a million and one questions about Ethereum, so let’s dive right in!
What is Ethereum?
Before you decide whether or not to invest in Ethereum, it is important to understand exactly what it is.
Credited to Vitalik Buterin, Ethereum was launched in 2015 and the formal development began through a Swiss company, Ethereum Switzerland. A nonprofit foundation, the Ethereum Foundation,was created too. Development was funded by an online crowdsale in 2014.
Ethereum hopes to solve one of the largest problems of the internet, the centralization of data. You have probably noticed that most of the data you have on the internet is stored on either a server or in cloud locations. Everything, including your banking information, is stored by either the company or a third-party service. These large digital data storage areas can be targets for hackers that want your data.
The idea behind Ethereum is to create a decentralized way to store data on the internet. The plan is to return control of the data to the data owner and restore the creative rights of content to the original creator. A number of industries, including financial services, software developers and hardware manufacturers are all using the Ethereum platform.
However, Ethereum has a monetary aspect, too. Like bitcoin, you can mine ether, which is a token that fuels the network and a currency you can transact with.
How does Ethereum compare to bitcoin?
Ethereum is fundamentally different from bitcoin. The goals and strategies of the two lead to entirely different outcomes in the currencies.
Bitcoin is less diverse than Ethereum. It uses blockchain technology to offer one kind of application. Bitcoin mining only stems from peer-to-peer electronic cash interactions. It lets people pay via bitcoin throughout the web and allows for currency ownership to be tracked through time.
But Ethereum is more than a currency. It’s a ledger technology that companies are using to build applications on. It’s more than just a platform, Ethereum is also a programming language. The primary purpose of ether is not to be a payment mechanism but to enable developers to build and run distributed applications.
Ether is mined on a variety of applications. The currency is used pay for services on the Ethereum network, but investors can buy the tokens in hopes that its value will rise over time.
Are there different kinds of Ethereum tokens?
Yes. As if the world of cryptocurrency was not already confusing enough, there are two different Ethereum tokens that investors need to be aware of.
Ethereum (ETH) and Ethereum Classic (ETC) are the two separate tokens that you need to know about. So why are there two different kinds? The first token created was the Ethereum Classic. It was used in the beginning of the Ethereum development. A few years ago, a popular cryptocurrency exchange was hacked and a ton of ETC tokens were stolen from investors.
After the hack, the Ether community decided to move away from Ethereum Classic to the currently used Ethereum (ETH) token. The move punished hackers and created the new version of the currency.
The ETH token is the more valuable of the two tokens. It is nice to see that the community was able to punish hackers even if it required a large shift.
Long-term investing options with Ethereum
For the purposes of this article, we will consider a long-term investment strategy in Ethereum as anything over one year. In a long-term strategy, you may plan to hold onto your investment for years to come.
Possible Advantages of long-term investing with Ethereum
The cryptocurrency industry is still in its early stages, so Ethereum is very much still a new development. The entire industry is expected to grow over time, but no one can predict how much it will grow (or if it will actually grow at all). This means that it is still a risky investment.
Although it is fairly likely that the entire cryptocurrency industry will grow over the next several years, will Ethereum grow with it? No one can know for certain, but things are currently looking good for Ethereum investors.
The ETH is one of the top three cryptocurrencies on the market today. People are using Ethereum to make online purchases and accept payments consistently. It is hoped that the token will continue to grow in value as the market grows, but as with all investments ETH carries risks.
In addition to the expected market growth, Ethereum is planning to make improvements to its technology in the near future. As the technology expands Ethereum’s use, it will continue to grow in value.
The improvements could cause the value of ETH currency to increase dramatically over time. Obviously, changes in the basic technology will not happen overnight, but the long-term potential growth of ETH may be high based on these changes.
Possible Disadvantages of long-term investing with Ethereum
The market of cryptocurrencies is generally growing. As it grows, more and more competitors will pop up to compete with Ethereum technology. The competition may stimulate more growth, but it could also cut into the potential growth of the ETH value.
A new competitor may become the next biggest cryptocurrency and cut Ethereum completely out of the market. We can speculate that Ethereum will remain the preferred currency. However, we need to remember that if a new and better technology comes along then it will potentially outperform ETH.
If you decide to become a long-term investor in Ethereum, you will need to set some ground rules as to when you will sell. It is unlikely that you will be able to cash in on the short-term profits of the volatile cryptocurrency market if you are holding onto your investments for a long period of time.
A final thing to note about long-term investing in ETH is the potential for government involvement down the line. Currently, the laws created by the government may not have too much of an effect on the value of the cryptocurrency market, but eventually, the government may interfere with the market.
When new laws and regulations are created, it could wreak havoc on the value of your ETH. If you invest, make sure to stay current with government regulations on cryptocurrency, otherwise, you could wake up to a frightening surprise one day!
Short-term investing options with Ethereum
Short-term investing would fall into the category of a 0- to 12-month holding period. If you intend to sell your ETH within a year, then you would be following a short-term investment strategy.
Possible Advantages of short-term investing with Ethereum
The general idea of investing is to buy low and sell high. With short-term investing, you are attempting to buy low and sell high within a short window of opportunity. The cryptocurrency market is so volatile that you may have the opportunity to find high profits through this strategy.
In order to take advantage of the market’s volatility, you will need to keep a close eye on it as it rises and falls. Buy when the price has fallen. If you see the market rise, make sure to secure your profits by selling at the right time.
The key to this strategy is that you can’t wait too long to sell! If you see that you can make a profit, then take it. The market can fall as fast as it rises, so lock in your profits when you have the chance.
Try to keep an eye on the factors that contribute to the volatility of the ETH’s price, including government regulations, new competition and various types of market manipulation that can pop up.
Possible Disadvantages of short-term investing with Ethereum
Ethereum is only one of the coins in the cryptocurrency market. Some others (like Bitcoin) may be better for creating short-term investment profits. Although ETH may produce some profits in the short term, the returns may be smaller than what you want to earn.
Before you decide to try short-term investing in Ethereum, ensure that you can gain profits that are worth your time. Short-term investing requires a large investment of time. Once you make an investment, you will need to watch the market closely to find the most opportune time to sell.
With this strategy, you would need to be prepared to spend at least some time checking into the ETH market on a weekly (if not daily basis). Short-term ETH investments may not be worth it unless you are prepared to commit that time.
As with other investing, especially cryptocurrency investing, there is a risk involved. Short term may enhance the risks by forcing you to buy and sell in short intervals. If you do not have experience actively trading, then this may not be the best place to start.
Is Ethereum a good investment?
Because cryptocurrency is newer and the price is volatile, Ethereum can be a risky investment. Please consult with a financial professional before making an alternative investment like this.
At the moment, Ethereum may be a good investment. The cryptocurrency market, in general, is dipping slightly, which means it may be a good time to buy tokens.
Many new companies are using Ethereum technology to build their businesses, so it appears likely that the value of ETH may grow over time. However, it is not guaranteed that it will grow. As with all investments, you may end up losing money so do not view this as a sure-fire way to grow your money.
If you are just starting out with cryptocurrency investing (or investing in general) then you should take it slow if you do decide to invest in ETH! Don’t get in over your head. You can always slowly increase the amount you invest but jumping in all at once is not a good idea.
Is it worth the investment?
Maybe. You need to decide what your risk tolerance is before you decide to invest in ETH. Some indicators show that Ethereum will grow over time and produce a large profit. However, the lucrative projections are not guaranteed.
You may never see a profit and you may lose money if you happen to buy and sell at the wrong times. Every investor should expect to take some wins and loses, but the stakes seem to be higher with cryptocurrency. The highs are mountainous and the lows are well below sea level. The swing is enough to frighten even seasoned investors.
With all of that being said, the high risk could potentially pay off. You just need to decide for yourself whether it is worth the risk or not. It is a personal decision, but if you decide to invest, I would recommend starting out with a small investment. You can always increase your investment over time, but if you lose too much money in the beginning then you may not have the funds to invest more later.
How to get started investing in Ethereum
If you decide that you are ready to start investing with Ethereum, you will need to know how to do it. Unlike regular stocks, bonds and other typical forms of investing you will not be able to buy ETH from a broker.
In order to purchase any kind of cryptocurrency, you will need to set up a wallet. You do not want to keep your virtual coins in an online exchange platform because it leaves them open to hackers. One easy way to lose a lot of money through ETH investing is by not protecting your tokens.
A virtual wallet will allow you to have total control of your coins with the use of a special key. The key is basically a password. It is just common sense to protect your money, but many people skip this important step. As with other types of password protected platforms, it is only effective if you keep your password confidential.
A great digital wallet to use is Coinbase. In addition to Ether, you will be able to store Bitcoin and Litecoin in this virtual wallet and know that they are safe.
What are you buying when you buy ETH?
If you invest and accumulate ETH in your digital wallet, it is important to remember that you are accumulating a different currency. The ETH is not going to produce any payouts or dividends like most traditional investments would. You will strictly be buying a different currency in the hopes that it will eventually be worth more.
A good comparison is when you buy other currencies to travel with. Before you head to a foreign country, you sometimes exchange your American dollars for a new form of money. You can use this new form of money to buy things in the country you are traveling to. In the case of ETH, those things might include app development. However, if you don’t want to buy things in the realm of software development, then you will need to convert the currency back into dollars.
As an investor, you hope that the value of the currency will increase between the time you buy and sell it. While the market will determine whether or not you make a profit, you need to be aware of what you are actually buying. ETH should not be treated as a share or something that will be used to create a steady passive income. The only time you may earn money through this investment is when you sell it.
Tips from a consumer safety expert
Investing in a cryptocurrency can be overwhelming to beginners, so I interviewed a consumer safety expert to find out his best tips for safe Ethereum investing.
Cal Cook is the consumer finance investigator at ConsumerSafety.org. It is safe to say that his knowledge about safely investing in cryptocurrency is unmatched. It is his job to find scary scams and ensure that our finances remain safe.
Cook’s best tips if you decide to invest in ETH include:
- Never invest more than 5% of your net worth unless you’re an expert. As we’ve seen in 2018, the crypto market is wildly volatile relative to other asset classes, and you don’t want to put too much of your capital at risk.
- Research and fully understand the protocol and future milestones before investing any money. By understanding what Ethereum is and how it works, it will help you make rational decisions and avoid panic selling during a market crash.
- Buy on insured exchanges like Gemini and Coinbase. The fees might be a little higher than smaller exchanges or peer-to-peer exchanges, but the purchase process is more secure.
It is important to feel safe if you are investing in Ethereum. One of the best ways to ensure that your money is safe is to listen to your gut feeling as you are investing. You do not want to put your money into a situation that makes you feel too uncomfortable.
It is expected that you may feel some nerves when investing in cryptocurrency for the first time. However, if you are losing sleep over your investment then it might not be the best fit for you. It will never be worth it to spend all of your time worrying about whether or not your investment is safe.
What is mining Ethereum? Should you try it?
ETH has to come from somewhere. The mining process is how ETH becomes available for people to buy. You may be thinking that you want to skip the buying process and just mine it yourself. Let’s take a look at how ETH gets mined.
All ETH comes from a digital mining system that has a chain of checks and balances in place. As a miner, you would attempt to solve problems and verify information within the blockchain. Through your problem solving and information checking, you would come up with a solution to the issue.
After you have solved the problem, you would announce your discovery to your fellow miners around the world in a sophisticated programming language. If more than half of the other miners agree that you have successfully solved the problem, then a new block gets added to the blockchain. The block will provide ETH tokens to the miner who solved the problem.
Unless you are amazing with technology and coding, then mining ETH is most likely not worth your time. Although a DIY attitude is always good, deciding to mine ETH yourself would likely cost you more in time and money than you could ever mine in ETH. Be realistic about your skills before you attempt to pursue this option.
General investment advice
Investing in Ethereum may not be the right choice for you and your finances, but investments of some kind are an important part of most financial futures. A solid investment plan can help you to build a successful future that helps you to accomplish your goals and dreams.
If cryptocurrency does not fit into your plan then do not worry! You can easily find a different investment vehicle that suits your own needs. Between 401k’s, Roth IRAs, and other investment vehicles, you will be able to find something that can help you meet your investment goals.
Investing can sometimes seem like a difficult path, but remember that it is never too early (or late) to start investing. It is important to build an investment plan that works for you!
Will you add Ethereum to your investment portfolio?
Cialis
Thank you a lot for giving everyone an extraordinarily breathtaking possiblity to check tips from this web site. It's always so enjoyable plus jam-packed with a good time for me and my office friends to search your web site particularly 3 times in a week to read through the fresh stuff you have got. And lastly, I'm at all times astounded considering the fantastic strategies you serve. Certain 1 tips in this posting are rather the most efficient I've ever had.
My husband and i felt now comfortable that Ervin could finish up his survey through your ideas he had through your web site. It is now and again perplexing to just always be making a gift of instructions which usually people have been trying to sell. And we all consider we now have the writer to be grateful to for that. The most important illustrations you have made, the simple blog navigation, the relationships you will help promote - it is all incredible, and it is letting our son in addition to us consider that that situation is exciting, which is really serious. Thank you for the whole lot!
I and also my buddies were found to be going through the best key points found on the website then suddenly developed a horrible feeling I never thanked the web blog owner for those strategies. These people were absolutely joyful to read through them and have in effect in reality been taking advantage of those things. Many thanks for getting considerably thoughtful and for deciding on this kind of fabulous ideas millions of individuals are really needing to know about. My personal sincere regret for not saying thanks to you sooner.
My wife and i got absolutely happy when Raymond managed to finish off his studies through the entire ideas he grabbed through the site. It's not at all simplistic to simply be giving for free methods that many people today could have been making money from. And we all take into account we now have the writer to give thanks to because of that. All the explanations you've made, the simple web site menu, the friendships you assist to promote - it is many unbelievable, and it's really making our son in addition to us feel that the content is cool, and that is extremely essential. Many thanks for all the pieces!
Thank you a lot for providing individuals with remarkably nice possiblity to read in detail from this blog. It is usually very pleasing and also full of a good time for me and my office colleagues to search your blog no less than three times per week to read through the newest issues you will have. And definitely, I am just always impressed for the terrific methods you give. Selected 2 areas in this post are undeniably the most impressive we've had.
I have to show my affection for your kindness supporting visitors who really want assistance with this particular situation. Your special dedication to passing the solution throughout was unbelievably informative and has constantly helped somebody just like me to get to their dreams. Your entire insightful key points signifies a great deal a person like me and extremely more to my fellow workers. Thank you; from everyone of us.
I want to get across my affection for your kind-heartedness in support of people that really need help on that subject. Your special commitment to passing the message along appears to be surprisingly useful and has really empowered many people just like me to achieve their goals. Your own valuable recommendations entails so much to me and even further to my peers. Warm regards; from everyone of us.
Thank you so much for providing individuals with such a breathtaking possiblity to discover important secrets from this website. It's usually so pleasing and full of amusement for me personally and my office fellow workers to visit your web site no less than three times per week to see the new issues you have got. And lastly, we are certainly astounded considering the good concepts you give. Certain two areas in this article are clearly the most suitable we have ever had.
I'm also commenting to let you know what a incredible experience my wife's child undergone going through your webblog. She picked up a good number of things, most notably what it's like to have an awesome giving spirit to let most people smoothly grasp selected hard to do things. You actually did more than visitors' desires. Thanks for imparting such good, trustworthy, educational and in addition cool tips about the topic to Janet.
I needed to post you this bit of remark in order to thank you very much as before relating to the striking solutions you have provided here. It is certainly wonderfully open-handed with you to grant openly exactly what many people might have offered as an electronic book to make some money for themselves, mostly now that you might well have tried it in the event you desired. These secrets in addition served as the fantastic way to comprehend other people online have the identical eagerness really like my own to realize very much more when considering this condition. I'm certain there are lots of more enjoyable periods ahead for people who take a look at your site.
I precisely wished to appreciate you again. I do not know the things that I would've done in the absence of those methods provided by you over this industry. Previously it was a real frightful dilemma in my view, nevertheless being able to see your specialized approach you resolved that forced me to leap over fulfillment. I'm just happier for the advice and in addition trust you comprehend what a great job you are always putting in training people through the use of your web page. Most likely you have never met any of us.
I just wanted to post a brief remark to be able to express gratitude to you for the superb strategies you are posting at this website. My time-consuming internet search has now been recognized with high-quality know-how to talk about with my colleagues. I 'd tell you that many of us visitors actually are quite endowed to exist in a really good site with very many lovely professionals with good points. I feel truly privileged to have come across your site and look forward to so many more pleasurable times reading here. Thanks a lot once more for all the details.
My husband and i have been so joyous that Michael managed to deal with his web research because of the ideas he made from your web page. It is now and again perplexing just to continually be freely giving points many others have been trying to sell. And we keep in mind we've got the writer to thank for that. Most of the illustrations you've made, the simple website menu, the relationships you will make it possible to foster - it's got many awesome, and it's helping our son and us feel that that content is pleasurable, and that is unbelievably important. Many thanks for all the pieces!
I am commenting to let you understand what a awesome discovery our daughter encountered studying your webblog. She mastered a good number of pieces, including what it is like to possess an ideal teaching style to let others with ease gain knowledge of certain impossible subject matter. You really exceeded my expectations. I appreciate you for presenting those good, safe, informative and as well as unique tips about this topic to Gloria.
I just wanted to write a small note so as to express gratitude to you for those amazing solutions you are giving out on this site. My time-consuming internet research has at the end of the day been paid with awesome know-how to exchange with my close friends. I 'd mention that most of us visitors are rather lucky to exist in a perfect place with very many perfect individuals with great guidelines. I feel rather fortunate to have used your entire web page and look forward to so many more cool moments reading here. Thanks a lot once again for all the details.
Needed to create you one tiny note to be able to say thank you once again for the lovely tips you've provided on this page. It's shockingly open-handed with people like you to give freely what exactly most people could possibly have advertised as an e book in order to make some bucks on their own, specifically considering the fact that you might have tried it in case you wanted. These solutions also worked like a fantastic way to be sure that some people have a similar dreams similar to my personal own to know the truth a little more in respect of this condition. I'm sure there are thousands of more fun occasions in the future for individuals who looked at your blog post.
cialis price south africa - generic cialis india generic cialis usa
I precisely desired to thank you so much once more. I'm not certain the things that I could possibly have undertaken in the absence of these tricks discussed by you relating to that area. It became a very horrifying crisis in my circumstances, nevertheless understanding a new specialized style you dealt with the issue took me to jump for joy. I'm just grateful for your advice and expect you really know what a great job you happen to be putting in educating many people all through your web blog. I am certain you've never come across all of us.
My husband and i felt very excited Raymond could deal with his basic research using the ideas he acquired while using the web site. It is now and again perplexing to just find yourself giving away methods that others might have been selling. Therefore we recognize we have got the writer to appreciate for this. All the explanations you have made, the easy web site navigation, the friendships you give support to instill - it's got many great, and it's helping our son in addition to the family feel that that concept is interesting, which is certainly especially mandatory. Thank you for the whole thing!
I wanted to draft you this very little note in order to give thanks again just for the magnificent guidelines you've shared at this time. It was so wonderfully generous of you in giving easily what most of us could have made available for an ebook to generate some money for their own end, even more so since you could possibly have tried it in case you decided. The suggestions as well worked to be a great way to be certain that other people have similar interest really like my own to realize whole lot more with regards to this matter. I am sure there are numerous more enjoyable occasions up front for many who scan your website.
Thank you a lot for providing individuals with a very nice chance to discover important secrets from this site. It's usually so nice and packed with fun for me personally and my office friends to search the blog nearly thrice in one week to read through the newest issues you will have. And of course, I'm so actually pleased with your unbelievable tactics served by you. Certain two ideas in this post are unequivocally the very best I have had.
I definitely wanted to develop a quick word to thank you for those marvelous ideas you are showing on this website. My rather long internet research has at the end of the day been recognized with sensible knowledge to share with my friends and family. I would believe that we site visitors actually are very fortunate to exist in a superb community with many marvellous professionals with beneficial guidelines. I feel quite fortunate to have discovered your entire webpage and look forward to tons of more brilliant times reading here. Thanks again for a lot of things.
I simply wanted to appreciate you yet again. I do not know the things that I might have made to happen in the absence of those methods shared by you on my field. It was actually an absolute alarming setting for me, nevertheless viewing a new professional strategy you handled that forced me to weep with delight. I will be happier for the assistance and then wish you find out what an amazing job you have been getting into teaching the rest using your blog post. Most probably you've never come across all of us.
Sctgql - best erectile dysfunction pills Tvrhcg
buy tadalafil us pulmoprestadalafil generic tadalafil 40 mg generic tadalafil united states
I simply wanted to send a quick word in order to thank you for these pleasant information you are placing at this website. My extensive internet research has finally been compensated with sensible tips to share with my family members. I 'd suppose that we visitors are very much blessed to live in a good place with very many outstanding people with great principles. I feel truly lucky to have used your web pages and look forward to tons of more fabulous minutes reading here. Thanks again for a lot of things.
I must express some appreciation to this writer just for bailing me out of such a circumstance. As a result of checking throughout the online world and obtaining views which were not helpful, I assumed my entire life was over. Existing without the strategies to the problems you have solved by means of your posting is a critical case, and the ones that could have badly damaged my entire career if I had not discovered your web site. Your own understanding and kindness in touching every item was tremendous. I am not sure what I would've done if I had not discovered such a point like this. I can now look ahead to my future. Thanks a lot very much for this specialized and amazing guide. I will not think twice to refer your web page to any individual who wants and needs guidelines about this matter.
I have to show some thanks to the writer just for bailing me out of this type of situation. After looking out through the world-wide-web and finding notions that were not helpful, I thought my entire life was gone. Living without the approaches to the problems you've solved by means of your good article is a serious case, as well as the kind which could have in a negative way damaged my entire career if I hadn't discovered your web page. Your primary skills and kindness in taking care of every part was precious. I am not sure what I would've done if I had not encountered such a point like this. I can at this time relish my future. Thanks for your time very much for your expert and results-oriented guide. I won't be reluctant to recommend the sites to any person who needs counselling about this situation.
I would like to get across my affection for your kindness for persons that really need help on this area. Your special commitment to passing the solution across appears to be amazingly practical and has without exception enabled regular people much like me to get to their ambitions. Your own interesting information implies a lot to me and somewhat more to my mates. Thank you; from each one of us.
Please Leave A Comment