How to invest in Ethereum
In the beginning, there was only Bitcoin. The Bitcoin blockchain was created by Satoshi Nikomoto in 2009, and although nobody paid much attention to it back then, it has changed the world in recent years.
People have become cryptocurrency millionaires over the course of the past two years just because they purchased a bunch of Bitcoin when it only cost 30 cents and then forgot about it. In mid-December 2017, however, Bitcoin hit a record high of almost $20,000. Since then it has yet to cross that threshold, and many investors think that it is no longer worth investing in.
However, those professionals have been investing in what they call the “New Bitcoin.” This is Ethereum, and if you’ve read anything about cryptocurrency, then you’ve no doubt heard of it. It’s faster, cheaper, and has far more real-world applications that Bitcoin does. If you haven’t started yet, it’s definitely a good time to invest in Ethereum.
Ethereum was first created by Vitalik Buterin at the end of July 2015 as a solution to some of the scaling issues that Bitcoin was running into, and to create a platform for developers to create blockchain-based software and applications. It is now the second most popular cryptocurrency in the world.
In 2017, Ethereum went to the moon. At the beginning of the year, it’s value was less than $10. By December, it was worth over $1,300. Needless to say, Ethereum made a lot of people rich in a short amount of time! Countless people wish that they could go back in time and invest in Ethereum.
As Bitcoin is slowly losing both popularity and value, people are looking to Ethereum to take up the mantle of the number one cryptocurrency in the world. They are predicting is value to rise exponentially further in the same manner that Bitcoin did. This is one cryptocurrency that you don’t want to miss out on. Let’s look at how you can begin investing!
Find an Exchange and Invest in Ethereum
Ethereum is currently traded on every major exchange on the market, which means that it’s easier than ever to invest in ethereum! The most accessible exchange to use right now is Coinbase. You can link your credit card or your bank account, and after they verify your account (which only takes a few hours), you could be making your first investments! They also have an incredibly easy-to-use mobile app so you can keep track of your accounts everywhere you go.
Many people complain about the excessive fees that Coinbase charges to make purchases and transfers. If this is a concern for you, there are quite a few other reputable exchanges out there such as Mt. Gox and Gdax. Find one that you’re comfortable with, and that has a trustworthy reputation, invest in ethereum and stick with it.
Read The Graphs
Most exchanges provide easy-to-read graphs so you can see the complete history of Ethereum. You can track it’s hourly, daily, weekly, and monthly progress, with just a few small clicks. You can zoom in and track micro-activity, you can see the current market cap (how much money is currently invested into Ethereum in total), and the price of Ethereum in relation to Bitcoin and the Dollar.
The best way to determine price is by the total market cap. It’s a relatively simple system; the more money is invested into the currency, the greater it’s perceived worth will be, and the higher market value it will have.
If you get one thing from this article, remember to hold (or “HODL” as veteran crypto investors like to say). Cryptocurrency tends to make drastic changes almost overnight. It can double in value over the course of a week just to dramatically crash over the weekend. While this can be scary for new investors, it is just how the game is.
If you lose 50% in a day, don’t panic. This is entirely normal, and if you hold onto your investments for another few weeks, then you are guaranteed to back on top in no time! If you do find yourself making huge gains, it’s a good idea to trade some in for fiat. Just make sure not to liquidate all of your funds at once.
There’s a saying by crypto traders that goes, “never buy the peak, and never sell the dip.” The best time to buy Ethereum is when it dips. Don’t panic sell as everybody else does. Wise traders invest in Ethereum when it drops. Keep holding onto what you have and buy some more. You will definitely make it all back weeks or even days later.
We wish you the best of luck in the coming months. Happy trading!