Investing in cryptocurrencies is a common practice for investors nowadays as a lot of people have become literal millionaires because of it. As cryptos continue to increase in price, we can’t really say that it’s too late to make significant gains from it. Now comes an important question, which crypto is worth investing in?
There are many cryptos worth looking into. You have the original and first crypto bitcoin which has grown significantly last year. You also have XRP, the cheap alt coin that’s gaining good ground because of its recent wins in court. Of course, there’s another popular altcoin – ethereum.
Ethereum is one of 2020’s big movers alongside bitcoin. This alt coin continues to showcase positive movement over the last couple of months so it’s not a bad idea to consider investing in this.
Before you buy this interesting crypto, here are a few things you need to know about it first.
What Is Ethereum?
First thing’s first, what is ethereum? The common misconception is that it’s simply a cryptocurrency. However, like other digital coins, ethereum has major applications in the real world. For this reason, it’s considered as one of the safe crypto options out there as it’s always a relevant coin.
Ethereum is a technology that powers thousands of decentralized applications. It’s used in real estate, healthcare, sports, logistics, and many more. As more developments are made on ethereum, it’s going to expand even further. Keep in mind that this is the blockchain technology we are talking about here.
Ethereum – the cryptocurrency is the second-largest crypto in the world when it comes to market capitalization. It sits comfortably behind bitcoin. It’s one of the biggest movers of 2020. How big? At one point, the crypto’s lowest was $90. Now, it trades at well over $2,000.
A lot of investors are seemingly concerned that ethereum has reached its peak in terms of pricing but it’s really hard to put a finger on how well the coin will grow this next year. Now that you know more about ethereum, let’s dive deep into whether or not it’s a good buy this 2021.
Ethereum’s Price Movement
When it launched in 2015, ethereum was worth $1 immediately which was already way more than what bitcoin was worth when it launched. The price stayed stable for a few months and like most cryptos, it grew significantly over time. Ethereum’s biggest rise was noted in December 2017 when it became well over $200.
Then by January 2018, the price of ethereum fluctuated again and it peaked at $1,358. However, like bitcoin before it, the price began to drop significantly as well. By the end of 2018, the price of ethereum fell to 2018 which was obviously a bad sign for many of the coin’s investors.
Since then, the price of ethereum moved up and down but all in all, the coin rose to stabilize at $140 in April 2020. Mind you, this was amidst the start of the pandemic as well. Then this month alone, the price of ethereum is not at a whopping $2,100 which is a 1,400% growth in just a year.
Obviously, it’s price movement is not as big as bitcoin. However, it’s positive trend over the last couple of months have led many people to believe that it’s wise to buy ethereum while it’s still growing. We can’t really know where the coin will be by the end of the year but experts have high hopes for the coin.
Should You Invest In Ethereum This Year?
Surprisingly, many cryptos are moving well this 2021. It might be because of the fact that the pandemic has basically helped promote the use of digital currencies like bitcoin and ethereum in various markets. While the world is slowly recovering from Covid-19, experts believe that ethereum is going to move well even this year.
According to some experts, the price movement of ethereum greatly resembles that of bitcoin. Now, whether or not ethereum will be worth as much as bitcoin one day is a tough question to answer. What many experts will tell you though is that we’re still far from reaching the ceiling price of this alt coin.
Many predictions claim that ethereum could reach well over $10,000 later this year and that’s not too tall of an order considering how big it grew this year alone. Moreover, the technology behind the coin isn’t experiencing any legal battles currently as well.
If not $10,000, experts are still confident that ethereum’s uptrend will continue well until the end of the year. Hopefully, their predictions come true..
Legal battles in the technology behind crypto matters because they affect pricing too. For instance, XRP recently suffered from losses after the SEC took it to court again.
For now, no legal institution is gunning for ethereum currently and this is great news for investors. No legal hindrances means lesser risk for investors too. Still, it’s worth keeping an eye out for any notable news regarding this cryptocurrency.
Of course, like any other cryptocurrency out there, ethereum can be a victim of volatility. As we’ve said before, the coin was over a hundred dollars at one point and then it dropped to less than a hundred in a span of a month. It struggled in that position for well over a year.
However, one thing you can guarantee though is that ethereum is going to be here for the long run. It’s application in various industries make it relevant enough to ensure that the currency is not going to reach the price of $0 in the future. In fact, it can definitely grow further as we see more applications for it.
Investing in cryptos like ethereum is a good idea but only if you know what you are getting yourself into. This coin is one of the most popular out there but that doesn’t mean that you are guaranteed immediate profit when you invest in it. Proper timing and money management is the key in making a decent profit with ethereum.