By Larry Wright
Introduction
I get that you’re thinking about whether or not it’s a good idea to put money into Ethereum right now. Like you, I’ve wondered whether it’s worth it to buy Ethereum because of how often it’s referenced in the same breath as Bitcoin.
I had my suspicions despite receiving confirmation from reliable sources that various inventions and cryptocurrencies have been built on the Ethereum platform. As a result, I’ve compiled this extensive guide on Ethereum investment to help you choose wisely.
Is Now a Good Time to Buy Ethereum (Eth)?
After a promising start to 2023, the economy is now dragging down equities and cryptocurrencies like Ethereum. Following its peak in November 2021, the price of Ethereum has fallen by surrounding 66%.
Nevertheless, the purchasing power of Ethereum has increased by 15% over the previous six months, along with the rest of the cryptocurrency market, after the FDIC’s announcement that it will back all investments at Silicon Valley Bank.
Ethereum’s on-chain and transit parameters are neutral, while the economic forecast is negative. The short-term consensus prediction for ETH is indifferent to negative. That being said, now could not have been the greatest moment to put money into Ethereum if you just expect to hold on to it for a few weeks.
Here are some steps to follow in order to buy Ethereum:
Know Your Risk
Keep in mind that investing in Ethereum is risky since cryptocurrency prices tend to fluctuate wildly. For instance, in May 2021, it was about $4 per coin, but by June of that year, it had dropped to less than $1,900.
Considering your risk tolerance and the predictability and variety of your other holdings before making investments in Ether is crucial in light of this extraordinary unpredictability. It is strongly advised by professionals that you avoid investing more money into cryptocurrency than you are willing to lose.
Therefore, it is important to weigh the potential benefits against the potential drawbacks before committing to an investment in Ether.
Pick An Exchange
It is necessary to utilize a cryptocurrency trading platform that facilitates the conversion of fiat cash into Ethereum in order to acquire Ethereum. Be certain that the exchange you decide on has a cryptocurrency wallet you can use to secure your holdings.
After deciding on an exchange, you may fill your account by transferring funds via wire, online banking, or directly from the bank’s website.
The costs charged by the exchange shift with each kind of deposit. Insert the symbol that appears on the ticker for Ethereum and the quantity that you wish to buy, and then click the “Buy” button. If you cannot afford enough cash to buy a whole Ethereum, you may still buy a portion of one.
Several Ethereum Investment Options
Here are several Ethereum investment options to consider:
Purchasing an Ethereum exchange-traded fund (ETF), which pools together multiple coins into a single, transferable commodity, is an option you can opt for.
You may also use a cryptocurrency exchange like Exodus to buy Ethereum after enrolling and completing KYC steps to verify your identity. Ethereum may also be purchased in decimal form.
Participating in the Ethereum market by means of a broker that, in addition to facilitating trades, also offers access to market information and analysis. Pick an exchange with caution while making sure they have solid qualifications and safety measures in place.
Why Choose Ethereum as an Investment?
Ethereum is a fantastic investment choice for a number of reasons. Ethereum is a mature token in a rapidly expanding market, so it’s a good bet for savvy cryptocurrency miners and speculators.
Last but not least, Ethereum is a popular option among investors because of its dominant marketplace status and its superior performance relative to many other cryptocurrencies over the past decade.