Why Buying Ethereum Should Be Your First Priority

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You should prioritize Ethereum over other cryptocurrencies for a number of


By market capitalization, Ethereum (ETH-USD) is the second-largest cryptocurrency. Since the project's inception, it has been one of the most steady cryptocurrencies in every bull market. However, Ethereum is more than just how it has done in the past. The future potential of Ethereum is hidden behind huge initiatives to improve usefulness and adoption.


Although Ethereum has the second-largest market cap, I feel it is still far from attaining its full potential. When compared to Bitcoin (BTC-USD), Ethereum has outperformed BTC in practically every bull market.


Furthermore, Ethereum is preparing a series of important network updates known as Ethereum 2.0.


With the upgrade, ETH will become the largest proof-of-stake cryptocurrency. It will also drastically lower the amount of power consumed by the Ethereum network. The "merge" upgrade (the changeover to proof of work) is expected to occur in either 2022 or 2023, and it is expected to drive the price of Ethereum even higher.


Ethereum’s Importance In the Cryptocurrency Market


The presence of over 499,000 ERC-20 tokens on the Ethereum network is the most critical factor ensuring the presence of ETH as a major cryptocurrency.


These coins rely only on the Ethereum network and must pay their gas fees in ETH. As a result, these roughly half a million tokens generate enormous demand for ETH while also ensuring that the Ethereum project does not fade away, as ERC-20 tokens have a combined market valuation of nearly $200 billion.


Shiba Inu (SHIB-USD), Chainlink (LINK-USD), Wrapped Bitcoin (WBTC-USD), Tether (USDT-USD), USD Coin (USDC-USD), DAI (DAI-USD), Decentraland (MANA-USD), and Basic Attention Token are examples of ERC-20 tokens (BAT-USD).


The safety of ETH is another feature that makes it an excellent investment. The Ethereum network presently has a hash rate of over 1,000,000 GH/s, making it one of the safest networks, according to Etherscan. Ethereum, in my opinion, is a superior investment option than Bitcoin because of its mix of safety and profitability.


In terms of acceptance, Ethereum has already established itself as the major payment method for the quickly expanding non-fungible token (NFT) market. Furthermore, Ethereum has established itself as a must in the Metaverse. Payment mechanisms for their individual Metaverse worlds include Axie Infinity , The Sandbox (SAND-USD), and MANA (AXS-USD), all of which are ERC-20 tokens. If the ambitious aim to mainstream the Metaverse succeeds, or if NFTs continue to gain popularity, ETH will immediately benefit.


The most important stablecoins are ERC-20 tokens that rely on the Ethereum network. Because of the volatility of cryptocurrencies, stablecoins are becoming major global payment mechanisms.


I believe that Ethereum's strong emphasis on innovation will gradually make it the crypto language franca. Bitcoin's lack of advanced smart contracts, answers for environmental concerns, and a dedicated staff will make it more difficult for it to compete.


Other than ETH, many cryptocurrencies are already proof-of-stake and support complicated smart contracts. However, none of them can compete with Ethereum's popularity.


Ethereum Could Be an Alternative to Stocks


Investing in cryptocurrencies is unquestionably dangerous. However, because of the short-term risk, I would not dismiss its long-term chances. Cryptocurrencies such as Ethereum are gaining real-world adoption as a result of innovation and improvements to their scalability. Crypto, in my opinion, is no longer the extremely speculative asset it once was. Volatility will inevitably reduce as the market capitalization of cryptocurrency grows.


Cryptocurrencies, in my opinion, are unquestionably riskier than stocks. As a result, I would not recommend them as a short-term alternative to equities. However, global factors such as inflation and conflict are causing the stock market to become increasingly volatile. If these issues worsen, average investors will find it more worthwhile to dedicate a larger portion of their portfolio to them.


How to Buy Ethereum, and What You Should Know Before You Invest


You may have heard about Ethereum due to its role in the establishment of NFTs (non-fungible tokens). Or maybe you've noticed it's the second-most popular cryptocurrency and want in on the action. Perhaps you've noticed the numerous new all-time highs it's recently set.


Ethereum is one of two cryptocurrencies that investing professionals recommend newbies stick to (the other being Bitcoin) since it is more established than other lesser-known cryptos. So, if you've concluded that cryptocurrency has a place in your portfolio, are comfortable with the risks, and are ready to invest, here's where to begin.


BEFORE YOU INVEST IN CRYPTO

Experts say it’s smart to keep your crypto investments under 5% of your overall portfolio. Crypto prices fluctuate wildly by the day, and experts also say you’d be smart not to invest more than you’d be OK losing if the market dropped out altogether. Crypto investments should also never get in the way of other financial priorities like saving for emergencies, paying off high-interest debt, and saving for retirement using more conventional investment strategies.


What is Ethereum?


Before you start buying coins, you should know exactly what you're getting into. Ethereum has a price history to back up its promise as a store of value, but there's also intriguing innovation going on with the coin that underlines its utility.


Developers can utilize the Ethereum blockchain to create applications known as decentralized applications (aka DApps). To gain access to that network, developers must purchase Ethereum's associated token, ether (ETH). Similarly, users must pay in ether to interact with a decentralized program.


Investors can acquire and hold ether as a long-term investment, similar to Bitcoin, in the belief that its value would rise in the long run. However, as with any cryptocurrency investment, the price of ether is expected to fluctuate significantly, particularly in the short term. Because of this volatility, investing professionals advise keeping cryptocurrency investments to less than 5% of your whole portfolio and investing just what you're willing to lose.


What Is Ethereum Worth?


Ethereum was created in 2018, and it set several new all-time highs in 2021, the most recent being $4,800 in November. Over the last year, its value has ranged between $1,000 and $4,800 per coin. While Ethereum's price has fallen slightly since its all-time high last year, it is still much higher than the $1,000 range it was in this time last year.


Ethereum's price, like that of most cryptocurrencies, varies a lot. Any cryptocurrency investment should be prepared for price fluctuations. If short-term price fluctuations annoy you, you might want to reconsider investing in cryptocurrencies altogether.


It's also worth remembering that Ethereum, like any other cryptocurrency, only has value because people believe it does. Because its price is not linked to any commodity or currency, it is subject to wild swings based on external variables such as media interest or proposed crypto regulation.


How to Buy Ethereum


  1. Choose a Cryptocurrency Exchange
  2. Fund Your Account
  3. Place an Order for Ethereum
  4. Store Your Ethereum


Choose a Cryptocurrency Exchange


Because you cannot buy cryptocurrencies through a bank or an online brokerage such as Fidelity or Vanguard, you must use a cryptocurrency trading platform. There are numerous cryptocurrency exchanges available, ranging from simple systems for novice traders to complex dashboards for professional traders.


Because Ethereum is so popular, most cryptocurrency exchanges will allow you to purchase it, but we recommend sticking to a few of the more prominent exchanges, such as Coinbase, Gemini, or eToro. Ethereum is also one of the few types of cryptocurrency that can be purchased through services such as Venmo or PayPal. Different platforms charge different prices, have different security measures, and may contain additional services, so it's a good idea to do some research before signing up.


Fund Your Account


To open an account with a cryptocurrency exchange, you'll most likely need to supply some personal information and verify your identity. Then you'll be able to fund your account by connecting your bank account or debit card. Fees will most likely vary depending on the option you choose.


Funding your account does not imply that you have acquired Ethereum, and like with any investment account, you do not want to keep your uninvested funds in your account. At this stage, you must purchase Ethereum in order to invest.


Place an Order for Ethereum


After you've filled your account, you'll be able to exchange your US dollars for Ethereum. Simply enter the amount of USD you want to exchange for Ethereum. Depending on the price of Ethereum and how much you want to buy, you will most likely be purchasing shares of a single Ethereum currency. Whatever amount you pay will be displayed as a proportion of the total ether coin.


Store Your Ethereum


If you only have a modest amount of cryptocurrency, it's best to keep it in your exchange account. However, if you want to shift your holdings to more safe storage, a digital wallet can provide extra security. There are numerous types of digital wallets, each with a distinct level of protection.


Should You Invest in Ethereum?


Cryptocurrency is a speculative, highly volatile investment. It is not for everyone, and you should ensure that you have a sufficient risk tolerance before investing. If you determine that cryptocurrency is correct for you, experts advise you to stay with the two most well-known cryptos, Bitcoin and Ethereum.


Keep any investment to less than 5% of your total portfolio, only invest what you are willing to lose in the long run, and never at the expense of other financial goals such as debt repayment or retirement savings.


Even if experts advise investors to stick with well-known coins such as Ethereum, this does not eliminate the risk of the investment. Cryptocurrency is a new asset class, and there is no long-term evidence to show how it performs in the market.


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