Perhaps we are all aware of the notions of cryptocurrencies, such as Bitcoin, Ethereum, or Ripple, which are the most popular and extensively utilized currency on the market. Because of its unique characteristics and practical applications include speedy online payment, cheap cost, lack of organization or state management, high liquidity, and digital nature. There are prominent and widely utilized currencies in the world today, such as Bitcoin and Ethereum.
Ethereum is the term that always comes to mind when someone hears “Bitcoin,” the world’s largest cryptocurrency, and its market value is second only to Bitcoin. So, what is Ethereum (ETH), and how does it work? How to purchase Ethereum? Should I create a Fund for Ethereum and invest in it in 2021? Let’s find out.
What is Ethereum?
Vitalik Buterin originally created Ethereum, an open-source, distributed computing platform based on Blockchain technology, in 2013. Ethereum provides a platform for peer-to-peer or contract-based transactions. Ethereum helps developers to create decentralized apps (DApps) and decentralized autonomous organizations (DAOs) using Smart Contact (DAOs).
- Smart contract (Smart Contact) — when the initial conditions are met, the contract’s provisions are automatically carried out, and no one can intervene.
- Decentralized applications (DApps – Decentralized Applications) are software that is distributed in a distributed way on decentralized repositories rather than being hosted on a single server. They can be created in any language.
- Decentralized Autonomous Organizations (DAOs) are groups of people that function according to a set of rules written in code. On significant DAO decisions, all members have the power to vote. Members who participate in DAOs must be compensated for their contributions to the running of DAOs.
Suppose Bitcoin is credited with pioneering Blockchain data storage technology. In that case, Ethereum is in charge of completing and molding a huge DeFi ecosystem, and Ethereum (ETH) was formerly thought a cryptocurrency that would eventually replace Bitcoin. The entire cryptocurrency industry has seen several market changes and Cryptocurrency projects created over the years (Eos, Canado, NEO, Matic), but no Altcoin has been able to replace Ethereum’s status.
Should you Invest in Ethereum?
The issue of bitcoin investing has never been more popular than it is right now. Many people are planning to invest in the Crypto industry before the exceptional price surge of Bitcoin and many other Altcoins.
Apart from Bitcoin, ETH is one of the most popular Altcoins. It is clear from the history of price changes over the last three years that BTC has seen phenomenal growth.
The coin reached a high of $1,377 in 2018. A year later, though, the price of one ETH was hovering around 200 USD. BTC’s price improved somewhat in 2020. And by early 2021, the cost of ETH has risen at an unprecedented rate.
The ETH price officially reached a high of $4,133.40 in the second session on May 10, 2021, the highest since the coin was launched to the market.
Whether or not to invest in Ethereum is a matter of personal preference. Extreme price swings are a frequent aspect of virtual currencies. It is not difficult for traders to produce significant gains if the input is correct at the right moment. However, if you invest solely based on popular opinion rather than a thorough grasp of the market, all traders will be in danger of losing money.
The Future of Ethereum
Making an accurate prediction of the future development of the ETH cryptocurrency is difficult. ETH has retained the top spot among the circulating Altcoins on the market recently. Nevertheless, this coin’s market valuation has topped 450 billion dollars, progressively closing the considerable gap with Bitcoin.
The Ethereum network platform has a strong backing, which has contributed to the significant increase of ETH. Although various Blockchain networks with structures similar to Ethereum have emerged (Eos, Canado, Neo, Matic), no challenger has yet to dethrone this platform.
The crypto sector as a whole is experiencing a time of rapid growth, with hundreds, if not thousands, of new coins being launched each year. It’s unclear whether ETH will maintain its popularity in the long run.
However, according to industry analysts, ETH will continue to be a major category of coins in the crypto market for at least the next 5-10 years. ETH is even more agreeable to politicians and centralized financial institutions than Bitcoin.
Ethereum’s Blockchain network is becoming increasingly popular in many aspects of life, as discussed in the preceding section. Furthermore, this currency has a well-documented birth and development history.
Vitalik Buterin, the most powerful individual in the Ethereum community, is the father of ETH. He has always been careful in recent interviews. At the same time, keep in mind that Ethereum is still on its journey to technological perfection, bolstering the security barrier on its route to becoming the most popular Blockchain platform.
Overall, the future of ETH appears to be quite bright. ETH will not be quickly eclipsed by any other Altcoin in the near future as long as the global Crypto market survives.
What is the best way to purchase and sell Ethereum?
ETH will be considerably easier to purchase and sell than any other altcoins. For the time being, the crypto world uses ETH and BTC as shared currency. This implies that traders may buy ETH with fiat money instead of a third-party altcoin. After the transaction is completed, the trader can continue to trade with other cryptocurrencies to profit from the difference or store it. as a medium for long-term investment
ETH is currently traded on all major cryptocurrency exchanges across the world. To begin trading with ETH, you must first open an account with at least one cryptocurrency exchange. After that, fund your exchange wallet account with funds and start trading.
Binance, Huobi, Coinbase, Bittrex Mxc, and other well-known international cryptocurrency exchanges allow traders to purchase and sell Ethereum. You may simply buy through P2P or convert from USDT, BTC to ETH on the exchanges as mentioned above.
How to Store Ethereum?
Ethereum may be kept in three different ways, just like any other cryptocurrency. Exchange wallets, hot wallets, and cold wallets are all included.
- Exchange wallets: Regular traders with a small quantity of ETH can store their funds in exchange wallets. Traders may now easily keep ETH on all exchanges.
- Hot wallet: This internet-connected wallet works independently of an exchange wallet.
- Cold wallets: This is a good option when traders need to keep ETH for an extended period. They are not required to transact right away. Because the cold wallet is not connected to the internet, it is incredibly secure.
Bottom Line
The DeFi decentralized financial market has turned a new page after the debut of the Ethereum Blockchain network. Thousands of tokens have been launched on the platform, with various operations for a variety of dApps projects. The Ethereum ecosystem uses the ETH token as a common currency to pay transaction fees. So far, ETH has maintained its status as the market’s most potent Altcoin. This coin’s value has surpassed 4,000 dollars on several occasions. ETH’s market value hit $459 billion in September 2021, about half of BTC’s $945 billion.
Ethereum remains a viable investment for me in the future, especially at this moment when the ETH price is at an acceptable level for market participation. However, because cryptocurrency is a dangerous investment industry with much profit potential, you should invest with surplus funds and be prudent with your money.
