How to invest in ETH
Now that you know what you want to invest in ETH, here a few ways for you to do that easily -
1. Use a cryptocurrency exchange
If you have BTC, you can always convert BTC to Ethereum or any other crypto coin to Ethereum using a cryptocurrency exchange that has a very low trading fee and minimal withdrawal fees.
2. Buy ETH directly
You can use your credit or debit card or PayPal or wire transfer to now buy ETH directly. This process is very fast and requires you to have an Ethereum wallet beforehand in most cases. You may need to provide a photo ID for the verification process.
3. Ethereum mining
The other way to get Ethereum is to verify the transactions on the blockchain which is known as mining. Even if you have a shadow of doubt about Ethereum you can always convert your ETH BTC because Bitcoin is not going anywhere.
Ethereum has become one of the hottest crypto coins right now. You should buy Ethereum instantly but if you still need some convincing, here are all the reasons you should invest in ETH:
1. Popularity of Ethereum
When laymen talk about crypto, they always resort to Bitcoin. Ethereum now has infiltrated the non-crypto audience as well. Publicly traded since 2016, Ethereum has become a valuable digital asset.
All the popular exchanges and wallets support Ethereum and all the other ERC-20 tokens. This, in turn, has had a hand in Ethereum’s growing popularity.
You can also buy Ethereum with a credit card, debit card or PayPal making it even more popular.
2. The shift to POS (proof-of-stake)
Ethereum may soon be moving to a Proof of Stake algorithm which will make it much faster and more decentralized than Bitcoin that uses that POW (Proof of Work). This POS will also require far lesser electricity and energy to verify.
The POW method is quite expensive in terms of electricity consumption. On the other hand, POS is cost-effective.
3. Real-world application
Ethereum’s smart contracts have a real-world application. As of now, Ethereum’s blockchain allows patients’ documents to be shared with other hospitals safely. The smart contract platform also eliminates the need for paperwork which reduces cost and cuts out the need for any middleman in a lot of sectors.
The Bank of America has also placed its faith in the Ethereum blockchain. The company helps premium customers secure their transactions with Ethereum. Ethereum has been incorporated by the companies faster than Bitcoin.
A brief history of Ethereum
Vitalik Buterin, a developer, had proposed the Ethereum network in 2013. He conducted a crowd sale to fund the development costs and finally launched Ethereum in July of 2015. Now, there are a hundred million Ether on the network
The future of Ether
Ethereum will only continue to grow and the price and demand will rise with it. However, all crypto coins are volatile so make sure you do your research before investing in Ethereum or any other crypto coins.
The disadvantages of investing in ether long term
- Yes, you are right that investing in the ether can be rewarding. But there are also many crypto investments that you can reap more profit. So, if you are planning to invest in ETH, then it is best to do a short period of investment.
- Holding for the long term is also known as HODL (holding on for dear life), if you are investing in the long term then you are not making the use of the cryptocurrency. The everchanging cryptocurrency is dynamic. If you want to reap profit try short term investment.
- Many people are saying that Ethereum is the biggest cryptocurrency and will be one in the future as well. But hey, you may never know that a new type of cryptocurrency can pop up that can rival the ETH or it can become even more popular than the ETH. So why take the risk go for short term invest in ETH.
- You need to be always prepared for the bad. The government can anytime come into action dropping down the ETH value.
As I have already said that all the cryptocurrencies are volatile and are bound to change at any time.
Long term investment has its flaws so do short term has. This is why I have been kept on saying that never take these cryptocurrencies for granted.
Disadvantages of Invest in ETH for a shorter period
- Of course, Ethereum is best out of all cryptocurrencies but a time will come when investing in other currencies can be more fruitful. Jut keep a good market knowledge for this.
- Many regulations have been made by the government for cryptocurrencies. And these regulations keep on changing so you need to be up to date with all the regulation
- The banks have stopped the credit card from buying this kind of currencies. This had made the invest in ETH for the short term less profitable.
- It is advisable that if you are very knowledgeable about the cryptocurrencies, only then go for the investment otherwise not.
If you are not knowledgeable enough regarding the cryptocurrencies, you can simply hire a broker who can help you in the investment.
All you have to do is sign up, confirm your identity, deposit your funds into the account and then purchase your ETH. You can then send your ETH from your broker exchange wallet to your Ether wallet by using the designated wallet’s public key (wallet address).
Pros of hiring a broker
- Highly knowledgeable
- Well customer services
- Ideal for a beginner investor
Cons of hiring a broker
- High transaction fees
- Require identification proof and subject to KYC
Different people have different kinds of thoughts on invest in ETH or other cryptocurrencies. Many of them cannot keep up with its everchanging nature, and many of them think that it can be a prime choice for investing the extra income.
It is totally up to you how you see these kinds of investment, and what you are going to do with your capital.