Ethereum (ETH) is one of the major cryptocurrencies out there, along with recognizable names like Bitcoin, Ripple, Litecoin, and several others. Since its launch in July of 2015, Ethereum has become a decentralized payment method that doesn’t rely on the government or traditional banks because the digital currency can be sent anywhere in the world instantly.
Many people prefer this payment method against the bank’s high fees and longer waiting periods and others purchase ETH because it is scarce, therefore it has value. Between March of 2017 and 2018, the price of Ethereum grew from $30 to an astounding $750 – meaning that investors could have made a lot of money if they had invested at the time.
Ethereum might not be as popular as Bitcoin, but it can do things that other cryptocurrencies can’t. It is programmable, which allows developers to use it to create new applications that can be uploaded to the system. They can be used to create new types of financial applications and are not controlled by any single person, rather, they are decentralized. The currency ETH is becoming a more widely recognized funding source across the world and is being offered as a payment method by developers in games, markets that allow you to trade digital assets (decentralized markets), financial applications, cryptocurrency wallets, and more.
Ethereum’s developer actually got the idea to create it because he felt that Bitcoin needed a way for its developers to create their own applications within the blockchain. After being rejected by Bitcoin’s developers, he went on to launch his very own cryptocurrency.
Investors also need to know that there are two types of Ethereum tokens, general Ethereum (ETH) and Ethereum Classic (ETC). This was actually caused by a wise decision the company made after being hacked. Instead of taking a huge loss, the company created the newer ETH so that the coins stolen by the hackers would lose a lot of their value. The fork made the older Ethereum Classic less valuable and many people switched to the newer ETH, which is the more widespread and supported token.
Ethereum is the 2nd most used cryptocurrency in the world, falling only one spot short of Bitcoin. Growth is expected to continue, giving it the potential to be a profitable investment in the long-term. Plans for improvements to Ethereum’s blockchain are in the works, which could also make the price go up. These constant improvements help to set this currency apart from its competitors.
While things seem to be looking up, there are a few problems that could lower the price of ETH. Government regulations might come along and make the price drop, holding onto the investment for a long time doesn’t allow you to profit from the cryptocurrency market’s volatility, which could offer one the ability to make short-term profits, and there is always a chance that a better cryptocurrency could come along and take its place. There also seems to be evidence that other investments have the potential to make you money. Of course, these are a lot of “what ifs?”.
So, is right now a good time to invest in Ethereum? We think so. Just look at the currency’s growth in the past – if you’re a fan of technical analysis, you’ll likely recognize its historical growth patterns. The thing you need to know is that cryptocurrency is a volatile investment that is expected to rise and fall, meaning that investors need to be able to hold onto their investment for some time without panic selling. If you can handle that, then Ethereum has the potential to make you a lot of money down the road.