Should you buy Ethereum as a long-term investment?  

Buying Ethereum has plenty of benefits for portfolio diversification, as it has had an impressive performance since its launch in 2015. At that time, Bitcoin had already started making waves on the internet, and many cryptocurrencies emerged from its concept, putting the base for a flourishing market that now has over 23,000 crypto coins that leverage a considerable market capitalization. 

However, the ETH price achieved a superior attribute over Bitcoin, which is just a store-of-value digital asset. Ethereum’s blockchain has improved the crypto market by introducing smart contracts, decentralization apps, and NFTs, supplying investors with crypto asset offers. Therefore, if you acquire Ethereum, you can access numerous digital products and diversify your income stream.

However, Ethereum experienced numerous bumps during its development that set the price back and made investors switch to Bitcoin. Regardless, investing for the long term is a popular strategy you can approach if you’re interested in ETH prediction, so here’s everything about it. 

What are the benefits of investing in Ethereum?

Due to its massive ecosystem and asset diversification, Ethereum has the potential to offer you great returns. Besides buying Ether for trading, you can lower your risk and vulnerability rate by approaching several of its products. 

Another reason Ethereum is a great investment is its liquidity levels, which are known for reaching considerable supplies. Some consider Bitcoin and Ethereum more liquid than gold, which ensures they’re less exposed to risks and makes it easy for investors to exit strategies. 

Ethereum is also unique because it leverages staking instead of mining, so it’s much less energy-intensive than Bitcoin. Investors and developers use staking to leverage passive income and contribute to network security, therefore protecting the community from vulnerabilities. 

What are the risks involved with Ethereum?

Considering it’s still a cryptocurrency, and its newness on the market doesn’t place a stable base for further improvements, Ethereum can be potentially dangerous for those not used to handling such massive cryptocurrencies.

Expert developers found several vulnerabilities in smart contracts that caused previous troubles due to a DAO breach in 2016. Considering that humans program smart contracts, the likelihood of flaws occurring is significant, so developers have also created special tools to minimize these weak spots. 

Ethereum isn’t safe from MITM, DDoS, or phishing attacks, either. Not everyone has a stable cybersecurity education that helps them identify potential risks when entering a website. However, attacks are getting more sophisticated than ever. 

What’s the best way to invest in Ethereum? 

Buying Ether is relatively straightforward, as you can either do it through your credit card, bank account, or P2P trading. Still, when it comes to investing, it’s best to choose a strategy that suits your risk and preparedness levels. 

For example, you can do what most people do with their cryptocurrencies, which is buying and holding Ether. This is a reliable method, and you can do it in the long term since there’s no pressure to sell the crypto afterward. Indeed, the risk of volatility still creeps in, but if you time your investments regularly, this factor won’t affect your portfolio that much. 

You could also try margin trading, which implies trading cryptocurrencies despite the number of value of assets available for selling. This means you can borrow funds to pay for the cryptocurrencies wanted from a broker. Margin trading can offer significant returns but is also dangerous because you depend on a fast-changing asset price. 

Will the Ethereum price increase in the future? 

Although the Ether price hasn’t changed that much recently, it mostly experienced an upsurge trend, at least since it received more traction online. Its price peaked in 2021 when it reached $4,878.26 and has only recovered at the beginning of this year. 

According to experts, the Ethereum price might get to this value again in a few years, going through a slow but steady increase in value. Currently, the average market sentiment is bullish, so investors might want to develop a proper strategy at the moment to leverage these values. 

If we look at Ethereum’s history, there were a few booming moments led by the blockchain’s technologies that increased prices. In 2020, DeFi became popular, and so did Ethereum, while 2021 marked another important milestone for Ether. 

These industries will influence Ethereum 

Ethereum went beyond the crypto market and expanded to the real world by introducing the blockchain experience within traditional systems of maintaining and securing data. Now, blockchain has become more lucrative compared to cloud computing due to its high security levels, enhanced privacy, and lower costs. Unfortunately, blockchain must become easier to approach and more scalable to truly improve worldwide data sets. 

Still, some industries started testing Ethereum’s blockchain to see what it takes for adoption to happen. These include gaming, banking, energy, and supply chain firms that use massive amounts of information and must secure customers’ data. Gaming benefits the most from blockchain at the moment, especially with the rise of play-to-earn games on the Ethereum blockchain. 

Are there any alternatives to Ethereum?

Ethereum has numerous competitors called “Ethereum killers” that ensure similar but better products and services. Solana, for example, has figured out how to do scalability right and is more efficient than Ethereum since the network supports more than 65,000 TPS, while Ethereum has barely crossed the 100 TPS milestone. 

Another improved version of Ethereum is Avalanche, one of the most sustainable blockchains with impressively low carbon energy. On the same note, Cardano is believed to become the next Ethereum since it has innovative smart contracts and significantly cheaper transaction fees than Ethereum’s.

What do you think about Ethereum? 

The Ethereum blockchain is one of the most innovative industries, bringing forth smart contract functionality and changing the sector forever. Its cryptocurrency, Ether, has experienced considerable growth in the past years, but it cannot be compared with Bitcoin, so people might be skeptical of this investment. However, based on its history and forecasts, Ethereum is a great long-term investment due to certain stability and slow but steady growth. 

Joshua White is a passionate and experienced website article writer with a keen eye for detail and a knack for crafting engaging content. With a background in journalism and digital marketing, Joshua brings a unique perspective to his writing, ensuring that each piece resonates with readers. His dedication to delivering high-quality, informative, and captivating articles has earned him a reputation for excellence in the industry. When he’s not writing, Joshua enjoys exploring new topics and staying up-to-date with the latest trends in content creation.

Author