Recently, many experts have forecasted a 400% growth in the value of Ethereum in 2022. The growing innovations around the blockchain, decentralized apps, NFTs, and Metaverse, are also responsible for its steady ROI. Now is the correct time to invest in Ethereum if you’re thinking of it. But, investing in any cryptocurrency can be pretty risky. So, here is a guide on what is Ethereum and what you should know before investing in it.
What Is Ethereum?
Ethereum is the largest Altcoin on the market. It is a global network computer used to develop DApps or decentralized applications. The token used to run the Ethereum blockchain is ether or ETH. Ethereum virtual machine or EVM supports the writing of smart contracts that are building blocks of decentralized exchanges, NFTs, Metaverse, etc. ETH also has a store value, which means you can buy and store them to trade like any other cryptocurrency.
What Is Your Risk Level?
Knowing your risk appetite is highly crucial to avoid significant losses. Ethereum investment is no different. Ethereum has shown some bold movements in the past. You should know how much you can lose while investing in this crypto.
What Is Your Objective?
Currently, ETH is showing upward price movement, making it a profitable asset option. But, many market experts have noticed that ETH moves slowly. This means you cannot expect large positive movements in a short period. It is better to invest in Ethereum if you are looking to invest long-term and are not looking for quick profits.
Why Invest In Ethereum?
Now, you know what is Ethereum. Now let’s look into investing in it. Several reasons make ETH popular and profitable for investors:
- High Liquidity: ETH is highly liquid due to its well-spread network of exchanges, trading platform, and applications. You can easily exchange your ETH with any other asset of choice.
- High Volatility: Expert investors are aware that fast-moving market cycles help gain big.
- Decentralized Apps: New trends of NFTs, DeFi, etc., allow the crypto to see some major price movements which allow big profit-making.
What Are Different Ways To Buy Ethereum?
There are different ways in which you can buy and sell Ethereum. The popularity of this crypto makes it possible to buy and sell ETH through various platforms. Some of the popular methods to invest in ETH are:
- Cryptocurrency exchanges
- Payment apps
- Stockbrokers
What Is the Process of Buying Ethereum?
The process of investing in Ethereum is super easy and hassle-free. Here are steps you need to follow:
- Choose a reliable and safe cryptocurrency exchange that supports ETH.
- Create an account on the exchange platform.
- Add money to your exchange account with the help of your credit/debit card or bank account.
- Select the amount you want to spend for buying ETH and place your order.
- Your account will get credited with ETH shares.
- Store them safely in your cryptocurrency wallet.
Ethereum is a steady cryptocurrency with a lot of scope in the coming years. However, one should do their research before investing in Ethereum. Check your risk tolerance and current market condition before investing.
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