Is Ethereum A Good Investment? Pros And Cons Of ETH

KEY POINTS

• Ethereum is predicted to be the next trillion-dollar cryptocurrency. It benefits from a growing dApp and DeFi ecosystem.
• While Ethereum will likely not overtake Bitcoin it is still an excellent investment opportunity. Ethereum has much larger goals than Bitcoin, it is a different kind of investment.
• It isn’t too late to buy Ethereum. Ethereum is predicted to rise exponentially in price, and so it is still early to invest.

The cryptocurrency market continues the bearish trend that started earlier in the year. Without much big news, it is only natural to wonder, is Ethereum a good cryptocurrency to buy now?

This is a legit question, given that the world economy is expected to enter a recession in 2023. There is also talk of the Federal Reserve raising interest rates by up to 100 basis points.

With this in mind, is Ethereum worth buying now?

Let’s do an in-depth analysis of Ethereum to figure this out.

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Virtual currencies are highly volatile. Your capital is at risk.

Why Ethereum Worth Buying Right Now

If you are new to the world of Ethereum investing, you might be wondering if Ethereum is a good investment, or should I invest in ETH? Well, the easiest answers to those two questions is yes – Ethereum is likely a good investment and investing in Ethereum could pay off big time.

One of the biggest reasons to invest in Ethereum is Ethereum 2.0, an upgrade of Ethereum’s algorithm that will transition it from proof of work to proof of stake. If the transition is successful, it may increase the price of Ethereum immensely. But that’s just one of many reasons why investing in Ethereum could be profitable.

Ethereum has increased significantly since the start of last year, and it shows no sign of slowing down. Experts believe the ETH coin has plenty of growth ahead and that investing in Ethereum is a smart financial decision for the long-term. Therefore, it could be a good time to invest in Ethereum ETH while the coin is performing very well.

In this article, we’ll break all Ethereum-related myths circulating online and help you come to your own conclusion on if you should consider investing in Ethereum.

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Virtual currencies are highly volatile. Your capital is at risk.

Reasons Why Ethereum Is A Good Cryptocurrency To Buy Today

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

One of the factors that will influence investing in ETH in 2022 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 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. Such technology can facilitate online payments, loan distribution, and commodities trading.

Ethereum is the largest and one of the oldest altcoins in the market today. Since it launched in 2015, Ethereum has given investors a pretty high return, up to 284,861.87%.

That said, the market dynamics are ever-changing, and how the market was between 2015 and 2017 is slightly different from what it is today. At that time, retail money was the key market driver. Today, institutional money is taking an even more significant role in the market, and there are many regulations.

With all these changes, it is pretty natural to wonder, is Ethereum a good investment today?

To answer this question objectively, let’s take an in-depth look at the advantages and downsides of buying Ethereum. For a start, below are 8 reasons why Ethereum is a worthy cryptocurrency to invest in now.

1. Ethereum Has Real-World Usage

There are a lot of cryptocurrencies that have no real usage besides speculative trading. In fact, a huge chunk of altcoins falls under this category. Ethereum is one of the top trending cryptocurrencies that have a high utility.

Ethereum use cases span from DeFi to NFTs. For context, all the best DeFi cryptocurrencies in the market today are Ethereum-based. Similarly, all top NFT cryptocurrencies like ApeCoin, Decentraland, and Axie Infinity are based on Ethereum.

Ethereum’s dominance in various cryptocurrency use cases has two advantages. The first one is that the demand for Ether tokens will grow going into the future. Secondly, investors seeking a mix of value growth and some element of stability will increasingly see Ethereum as a smart cryptocurrency investment.

The result could be an upsurge in the value of Ethereum once broader market factors become favorable to the cryptocurrency market.

If you are optimistic that these use cases could play a role in Ethereum’s value growth, then the next thing to consider is where to buy Ethereum safely.

Below are some of the best exchanges to buy Ethereum.

• Coinbase
• Huobi Global
• Binance
• eToro

 >>>Buy Ethereum Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

2. Ethereum Is Becoming Environmentally Friendly

Environmental issues have become a major concern for investors across all markets. That’s because the world is heating up, and it is everyone’s responsibility to ensure that we leave behind a livable planet for future generations.

This is why cryptocurrencies with a low environmental footprint are becoming more attractive, especially to institutional investors. Ethereum has made significant strides on this front by changing from a Proof-of-Work algorithm to a Proof-of-Stake algorithm.

The shift started in 2020 and is almost complete in what is known as Ethereum 2.0. Once the transition is complete, Ethereum’s carbon footprint will be less than a percentage of what it is today.

That’s because rather than mining, which is energy-intensive, protecting the network will now entail buying tokens and being rewarded with more tokens for staking. This makes Ethereum attractive to institutional investors, who mostly have a social responsibility to their backers.

This could see Ethereum’s demand grow, making it a high potential cryptocurrency to invest in at current prices.

3. Ethereum Is Censorship Resistant

Lately, there has been an increase in censorship-related issues on the internet. Big tech companies have so much power and can determine what is said or not said on their platforms.

Ethereum is coming in as a solution to the issue of censorship, and that’s a big deal at this point. Ethereum is censorship resistant because it has no central point of control. This means no one can shut down Ethereum; by extension, the data stored on Ethereum cannot be stopped, not even by the government.

This factor could see even more Dapps launch on the Ethereum blockchain going into the future. Since it requires Ether tokens to launch Dapps on Ethereum, this rising demand will likely translate into a higher price for the tokens. That’s why Ethereum stands out as a highly undervalued crypto today. The price is low, but the potential demand is high.

4. Ethereum Has The Potential To Redefine The Internet

The internet is huge, and since it became a thing has changed the world as we know it. Today, billions of people are connected to the internet, and trillion-dollar companies have their origins in the internet age.

Now imagine a scenario where Ethereum changes the world as it is today and becomes a world computer. Since it launched, Ethereum has experienced a surge in popularity as a launch platform for decentralized applications.

This use case continues to grow, and today, Ethereum is used as a launchpad for all kinds of smart contracts. Ethereum is being used to digitize diverse assets in a decentralized environment.

As this adoption grows, so does the growth in popularity of Ethereum’s programming language, Solidity, which is further helping entrench Ethereum as the launchpad for Dapps.

This places Ethereum in a unique position to become the world’s largest and most important decentralized computer, effectively reshaping the internet. With time, multi-billion-dollar decentralized organizations with global influence will run on Ethereum, which is a big deal in terms of ETH’s potential value growth. It makes Ethereum a smart cryptocurrency investment today when adoption is still in its infancy.

5. True Decentralization Is Proving To Be An Asset

If you are still wondering whether Ethereum is a smart investment today, consider that it is one of the most decentralized cryptocurrencies in the market today. In fact, Ethereum is almost at par with Bitcoin when it comes to decentralization.

But why does Ethereum decentralization matter? For the last couple of years, it didn’t matter that much. Most of the top performing cryptocurrencies in the 2020/21 bull run were heavily centralized. Similarly, many top-performing Ethereum alternatives mostly have an element of centralization.

However, things are changing, and investors are beginning to realize that decentralization may be one of the most significant assets you can count on in this market. This followed the collapse of Terra, a $40 billion project, and the move by Celsius and a couple of other cryptocurrency platforms to limit withdrawals.

This is a wake-up call for investors that there is a risk in putting all your hopes in an individual or a single organization in an unregulated market like crypto.

The power of decentralization makes Ethereum a heavily undervalued cryptocurrency at current prices. More investors seeking a mix of safety and gains are likely to turn more to Ethereum going into the future.

6. Ethereum Tokenomics Are Changing

Since the hard fork of August 2021, Ethereum has experienced a massive change in its tokenomics. Unlike in the past, the more Ethereum is adopted, the more Ether is burned in the form of fees.

This was why Ethereum rallied from around $1k in August 2021 to highs of $4800 by December 2021. Going into the future, Ethereum is likely to get even more adopted thanks to its resilience even in tough market conditions.

With aspects of the market, like DeFi and NFTs, all likely to grow, the burn rate of Ethereum will accelerate. The result is that Ethereum’s price could go up exponentially as demand outstrips supply going into the future.

Of all the reasons to consider investing in Ethereum, this is probably one of those that make Ethereum a smart cryptocurrency investment in 2022.

7. Ethereum Is Handling The Competition Very Well

The Ethereum blockchain has faced a lot of competition since 2017, when its scaling issues became most apparent. This was followed by a rise of many Ethereum killers, all angling to dethrone Ethereum from its position as the number one Dapps platform.

However, none of these competitors have in the last 5-years managed to dethrone Ethereum from its top position. In fact, many of them fell by the wayside after the hype. This has a lot to do with the fact that many have focused on scalability and transaction fees at the expense of decentralization.

Now that Ethereum is about to eliminate its scaling issues by relying more on layer-2 solutions, it may be even more challenging for Ethereum competitors to compete. This will likely see Ethereum consolidate its position as the number one Dapps platform in the market. This gives Ethereum an edge in terms of adoption, a factor that also makes it a smart cryptocurrency investment to make today.

8. Ethereum Is Available On Most Exchanges

Still, wondering whether Ethereum is a good cryptocurrency worthy of buying now? Consider that it is one of the few cryptocurrencies that is listed on all exchanges, both big and small.

This is an advantage for Ethereum in that it will always be a liquid asset, one that investors can enter and exit at any given time. In a market as high risk as cryptocurrencies, this is a big plus. That’s because investors know they can easily buy and sell, depending on the prevailing market conditions.

>>>Buy Ethereum Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

Drawbacks To Investing In Ethereum

While Ethereum is one of the best cryptocurrency investments with a huge upside potential, it is not without its issues. There is always the chance that Ethereum can underperform the market or even fail as an investment.

Just to help you make an informed investment decision, here are some risks to be aware of when investing in Ethereum.

The competition remains a threat

Despite Ethereum retaining its position as the number one Dapps platform in the market, the number of competitors is rising. Some of the newer ones are doing pretty well on key metrics such as security and decentralization.

This means there is a risk of Ethereum seeing a drop in its market share over time. The same could reflect in the price, in the form of ETH underperforming the broader market. It’s a risk that every investor should consider when investing in Ethereum.

The threat of hackers

Cryptocurrencies are always at the risk of bad actors, and Ethereum has seen its fair share of malicious attacks. For instance, back in 2016, Ethereum suffered a hack, and the Ethereum DAO lost $70 million. However, the community moved to restore the funds through a hard fork.

More recently, a 7-block reorganization of the Ethereum blockchain posed a threat, though the situation did not hurt ETH’s price. Nonetheless, it points to some of the risks that Ethereum and all cryptocurrency investors should be aware of before buying ETH.

That said, you can deal with these issues by investing in a diversified cryptocurrency portfolio. The idea is that, if Ethereum underperforms, you can be cushioned by the other cryptocurrencies in your portfolio.

Is Ethereum Worth Buying Today?

Up to this point, you know the pros and cons of Ethereum and whether it is a good cryptocurrency investment or not.

However, before you decide to buy Ethereum, below are a few of the things you should give priority to.

1. Only invest in Ethereum through regulated exchange and brokers.
2. Secure your account with a strong password.
3. Once you have bought Ethereum, please don’t leave it on exchanges. Take it out and store it in either a hardware or a software wallet.
4. Diversify your portfolio by investing in other cryptocurrencies as well. You don’t want market eventualities to catch you flat-footed investing in a single cryptocurrency.

If, up to this point, you are convinced that Ethereum is a smart cryptocurrency investment, let’s now take an in-depth look at the process of buying Ethereum.

>>>Buy Ethereum Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

Ethereum Vs Solana – Which Is A Better Buy?

Solana and Ethereum are two of the best cryptocurrencies to invest in and top platform blockchains in the market today. Rather than choosing one, it makes sense to invest in the two of them. Both have the potential to become top-performing cryptocurrencies going into the future.

However, if you don’t have the resources and want to maximize on one of the two, then it may be more prudent to focus on Ethereum. The odds are that Ethereum could outperform Solana in the foreseeable future. Here’s why.

Ethereum has much bigger news coming up in the short term, and this could give it a much bigger price bump than Solana. The news is with regards to the transition to Ethereum 2.0. The process started almost two years ago and is expected to be completed by August 2022.

The impact this will have on Ethereum is huge and could see Ethereum lead the market out of the current bear market and into another bull market. The same is likely to see Ethereum outperform its competitors, making it a high potential cryptocurrency to buy in 2022.

Besides the hype, the transition comes at a time when the value of Ethereum’s decentralization is becoming more apparent to investors. This is after the almost overnight collapse of Terra a few months ago. This coupled with the fact that Ethereum is set to scale much better, could play well into its value growth going into the future.

Closely related to the transition to Ethereum 2.0 is that Ethereum has been deflationary for a while now. However, the token burn will accelerate once the transition to Ethereum 2.0 is complete. Since Ethereum adoption is among the highest in crypto, an increase in the amount of Ethereum burned as fees could see ETH outperform Solana going into the future.

Clearly, the odds are in favor of Ethereum over Solana. As such, if you are limited to an either-or, then Ethereum comes off as a better investment in the short to medium term. However, it is essential to remember that cryptocurrencies are volatile assets, and no one can predict the future with certainty.

As such, it makes sense to spread the risk on both Ethereum and Solana. Not only do you reduce the risks, but you also increase the odds of higher gains since Solana, too, is one of the most undervalued cryptocurrencies in the market today.

>>>Buy Ethereum Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

Is It Too Late to Buy Ethereum?

No, it is not too late to buy Ethereum. Many crypto market analysts appear to be quite bullish on Ethereum and there is a general consensus that it will likely increase in value in the near future.

That said, there isn’t a clear consensus on how high Ethereum can reach. If that is the case, then buying now could be ideal and you could even call it ‘cheap’.

Does Ethereum have a future?

Yes, Ethereum does have a future. If anything, it is still only just getting on its feet as smart contracts, dApps and DeFi services grow in popularity. There is no urgent reason to suggest that Ethereum will not last for the next 10 or so years. That said, there are technical risks that are worth mentioning. The biggest is that Ethereum has an inflationary nature as it doesn’t have a cap on the total number of tokens that can be made.

What this means is that if a large number of Ether tokens were dumped into the market, it would decrease the value of everyone’s holdings.

Another key technical risk is Ethereum’s 2.0 upgrade to proof of stake. While this would likely make Ethereum even more popular, it is a significant change and if it doesn’t work out, it could be catastrophic to Ether’s price.

And finally, we need to consider Ethereum’s rivals (check ‘Alternatives to Ethereum’ below for more!).

Ethereum was announced in 2015 and back then the idea of smart contracts and dApps was brand new.

Fast forward to today, there are a lot of new cryptos promising to topple Ethereum in what it claims to achieve.

How safe is Ethereum?

Ethereum is largely considered safe. Like almost all cryptocurrencies, Ethereum uses blockchain technology to ensure itself against attackers.

As Ethereum’s network continues to grow, it will become more secure as having more nodes makes it harder for attackers to manipulate it. This is because the combined computing power of all the nodes on the network will be very hard for attackers to overcome.

Note that many of the hacks where Ether has been stolen did not happen on the Ethereum blockchain, but in cryptocurrency exchanges where tokens are stored in ‘hot wallets’.

To keep your Ethereum safe, store it in your own wallet, not on a cryptocurrency exchange!

>>>Buy Ethereum Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

Conclusion: Is Ethereum A Good Investment?

Yes, investing in Ethereum is worth considering. For many, investing in Ethereum has proven to be a great decision.

In 2017, the price of one Ether token was $25, and by Early 2022 it had reached $3,409. In five years, the value of ETH had gone up 100x.

So, if you had invested $100 into Ethereum back in 2017, by now you would have had about $100,000 in Ethereum!

So is Ethereum worth buying? Right now, Ethereum is definitely considered a good investment. And, if you are looking to invest in it, now would probably be a good time to do so. While no investment is risk-free, investing in Ethereum has generated more than 10,000% return over the last few 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!

>>>Buy Ethereum Now<<<

Virtual currencies are highly volatile. Your capital is at risk.