Should i buy ethereum

Faster transactions. Net issuance is projected to drop considerably post merge, constraining supply. Ethereum may become deflationary. Increased scalability and security. Better for the environment thanks to proof of stake not work. However, ethereum and the broader crypto space have been unable to escape the longer-term bearish macro backdrop. We discuss that next. Macro Reasons for the Current Ethereum Price Long-Term View Crypto markets almost looked like they had partial immunity from the tech sell-off and growing risk aversion.

But recent price action has put paid to that notion. The relative stability of ethereum between mid-January and mid-April, when it choppily trended up with higher highs and higher lows, was simply the calm before the storm. And there is likely more to come. And we expect additional aggressive hikes in November and beyond, following a higher-than-expected US employment report for September.

It implies the economy is still running too hot and that the Fed will act aggressively to tame it. This would negatively impact risk markets, especially the ETH price. Years of low interest rates since the global financial crisis in had seen markets reach extreme valuations by the end of Who cares if tech companies are loss-making if the companies can borrow easily? And if companies cannot borrow money, they can attract capital from investors, who themselves have likely borrowed money.

Crypto markets have not been immune to the support from cheap leverage in the fiat markets. After all, crypto offers the tech dream of scalability and regulatory arbitrage. And if there was any doubt that crypto was not benefiting from low interest rates, the recent declines in crypto as US rates have risen should remove it. This is a common occurrence throughout history. When the liquidity tap turns off, usually by central banks raising rates, the correlation between diverse assets shoots up.

This time appears no different. The bottom line is that the macro backdrop for crypto remains bearish on rate hikes and inflation. It was higher than expected, which prompted further worries in financial markets. The Fed meets again on 2 November for their next policy decision; they will probably hike another 75bp. The even will be important for risk markets of which crypto is increasingly a part and broader risk sentiment in general.

What Else Is Happening in Crypto? Alongside investors, miners are feeling the crypto crunch. As prices drop, they are re-evaluating whether it is still profitable to operate their expensive mining rigs. And soaring energy prices exacerbate this effect as the margins for mining profitability tighten.

Hash rates and miner revenues have come down significantly since the start of June. Regulation also is becoming more of a theme throughout , with various executive orders signed already. Increased regulation should mean less uncertainty around crypto markets for investors, which would be bullish. On the flip side, overregulation could stifle innovation by increasing censorship. The ongoing regulatory backdrop will be key to monitor.

Lastly, on ethereum specifically, there is the much-anticipated merge. We previously covered its potential implications. The punchline was that it should be bullish for ethereum. It has prompted other players to start censoring transactions to avoid similar sanctioning. Large ethereum miners are looking to upgrade their equipment , turning to cloud computing and AI ahead of the merge. Summary of ETH Analysis The bottom line is that crypto, including ethereum, will remain under pressure.

The main near-term support would be Fed dovishness rather than any crypto-specific dynamics. We do not see this happening anytime soon. And for long-term investors, we still think some allocation to crypto makes sense — just like an allocation to equities also makes sense. But be prepared for weakness in For all our latest analysis on crypto markets, click here. With the length of the blockchain continuing to grow and decentralised finance DeFi gaining ground over traditional finance, this new asset class is reshaping the investment landscape.

We think ethereum is a worthwhile long-term investment. However, we also note that ethereum is extremely volatile. That means it experiences large price movements over short periods. Before investing, you must understand the risks involved: you could lose all or a large portion of your investment. Never invest money that you cannot afford to lose. Success stories like these often give people FOMO — or the fear of missing out — if they do not invest immediately.

However, to invest in cryptocurrency, we must first understand it. Crypto tokens are unlike any traditional asset class. And they are all different. Just because you understand bitcoin, does not mean you know how ethereum works. Our video on bitcoin and ethereum fundamentals can help you understand how ethereum prices fluctuate and how to assess trends in important ethereum metrics.

And the video below explains other cryptocurrencies that might put ethereum at risk. Each currency has different underlying protocols and technology. That impacts how they trade, their volatility, and how you can value them. Some are more like stocks, others commodities, and others currencies. And each crypto token has a unique structure of supply. We think crypto markets are a worthwhile long-term investment.

The technology can capture market share on some existing markets like payments and stock trading while creating new markets like valuable scarce digital assets. Drawdowns provide good entry levels for exposure, but we would not go max long in an environment of rising central bank rates and falling global growth momentum. A crypto exchange is where buyers and sellers meet to exchange money for coins, coins for other coins, and coins for money. This isn't a unique disadvantage for Ethereum as all cryptos except for some stablecoins are volatile so this alone doesn't make Ethereum a bad investment by any means..

High transaction fees. Arguably Ethereum's largest drawback, transaction fees, hold back the network from reaching mainstream adoption. Using Ethereum's blockchain can cost hundreds of dollars, so retail investors with smaller amounts of capital are priced out from using the network.

While other smart contract blockchains have cheaper fees, Ethereum has the most applications and use cases built on its blockchain. New regulation. The government is unlikely to let cryptocurrencies remain completely unregulated for long. New regulations could interfere with business models, and cause crashes that are entirely out of your control.

Threat of online hacking. Hacks are a threat facing many cryptocurrency investors. Most exchanges let you buy and sell your cryptos using a mobile app or website. However many users also store their crypto on exchange wallets.

This leaves them susceptible to losing their investments should the exchange get hacked, and their private keys being stolen. Competition: There are a ton of emerging smart contract platforms giving Ethereum a run for its money, namely Binance Smart Chain, Cardano and Polkadot.

While these cryptocurrencies offer better scalability than ETH, they lack decentralization and the robust DeFi ecosystem that Ethereum has on its network. Proof of Work Consensus: Although Bitcoin also uses proof of work consensus, this is more of a con for Ethereum. Transactions on bitcoin are only necessary to transfer the crypto, while Ethereum's network is used for a variety of functions. Proof of work is more expensive and slower than proof of stake, which is currently being used by many ETH competitors.

Ethereum Trading Signals IntoTheBlock provides a fantastic suite of fundamental and technical trading signals to help you make your own informed decision on whether Ethereum is a good investment or not. Investing in Blockchain Tech Unlike speculative stock investments, there are some additional storage risks to be aware of when investing in cryptocurrency specifically.

Even if Ethereum proves to be the best investment of the year, if you lose it to bad storage practices, it won't matter. Ethereum Wallets So, is Ethereum a good investment? It can be if you do your research, manage your coins properly and keep an eye on the market. Crypto investing is not as simple as calling a broker and buying or selling.

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It is a complex programmable system that allows people to build pretty much anything on Ethereum. Since the project started, thousands of complex programs in smart contracts have been developed on it. Many more are coming up, especially now that the world understands the potential of building on Ethereum.

Since these projects need to buy Ethereum for them to use the EVM, then it means that the long-term demand of Ethereum is guaranteed. Ethereum is the second-largest cryptocurrency The ranking of a cryptocurrency on CoinMarketCap and other platforms matters. Ethereum does not have this problem. It is the second-largest cryptocurrency by market capitalization, which means even a crypto newbie gets to see Ethereum, alongside Bitcoin when they first check out the market. This has been instrumental to drawing liquidity into Ethereum and by extension its demand.

With crypto awareness on the rise, this is a factor that could see Ethereum gain consistently over the years. Don't Miss: Ethereum Price Predictions 3. While this may seem high, Ethereum still has lots of room for upside growth. People now see cryptocurrencies as a legitimate alternative investment to traditional investments such as stocks and real estate.

This spells good tidings for cryptos with strong fundamentals such as Bitcoin and Ethereum. Ethereum Technical Analysis points to bull strength Pro traders use a combination of technical and fundamental analysis before making their bets. In the case of Ethereum, technical indicators are largely bullish. The same is supported by the moving average where the shorter-term exponential moving averages are trading firmly above the and day moving averages.

With the technicals that bullish, supported by strong fundamentals, Ethereum is in a good place for more gains in short to medium term. Its current price action reflects this reality. Ethereum is gaining in institutional adoption Ethereum has been gaining in adoption over the years, and this will only grow with time.

This is alliance is made up of some of the largest institutions in the world, including JP Morgan. As decentralization takes root in society, these institutions will build even more on Ethereum and drive up the demand for ETH. This is a factor that will see the level of Ethereum rise in value going into the future. It opened up the way for an explosion of projects on the Ethereum blockchain.

Today, a huge chunk of projects in the crypto market are ERC20 tokens. The explosion of these tokens followed the ICO bubble of Since then, the number keeps on rising with new innovations such as DeFi and NFTs , further opening up the adoption of the Ethereum blockchain. As more of these ERC tokens come into the market, the value of Ethereum will rise.

Ethereum 2. The move solves two problems. The first one is that of scalability and transaction costs. Since there will no miners, the rising cost of gas that has posed a challenge in the past will be non-existent after the full transition. Secondly, the shift will make Ethereum more environmentally friendly, a factor that could draw in environmentally conscious investors, especially institutional ones. Since its launch, many others such as Cardano, have come up. However, none of them has the market reputation of Ethereum.

This explains why most new projects still launch on Ethereum despite its competitors positioning themselves as more efficient. Besides, now that Ethereum moved to Ethereum 2. This will have the effect of pushing up its market share and, by extension its price. Ethereum has a quality developer team Ethereum has one of the best developer teams in crypto, rivalled only by that of Bitcoin. A person like Vitalik Buterin is a computing expert and was already creating scenarios for scaling solutions way before the current transition.

With such a developer team at Ethereum, investors can expect this crypto to keep growing in value. This is also a key factor to driving up to drawing in institutional players in the long run. Ethereum is one of the most decentralized cryptocurrencies In the crypto space, decentralization is the key to success.

Quite logical considering that decentralization is the whole essence of the market, both for freedom and security. Just like Bitcoin, no single miner, or group of miners control the Ethereum mining process. Ethereum is so decentralized that not even Vitalik Buterin can dictate the direction of Ethereum.

This is a key security guarantee of Ethereum and one that will play into its value in the long run. Ethereum is time tested Ethereum is one of the oldest platform blockchains in the market and carries a significant volume of most projects ever launched. This also means, it has been tested to its ultimate capacity, and the upgrades its doing are based on market realities. A lot of its competitors are using metrics that have not yet tested, and they have a risk of failure.

For context, the Binance chain recently saw an increase in gas prices despite using cost and scalability as a key selling point. Ethereum has lots of long term believers One of the key indicators of a project with long-term potential is the number of people invested in it for the long run. Ethereum is one such project.

Since the launch of Ethereum 2. This is an indicator that there are lots of people, wealthy ones that firmly believe in the viability of Ethereum as a long-term investment. This is a factor that could see its value grow significantly in the long haul, and makes it a good investment at current prices. Check Out: Ethereum Price Prediction for and Ethereum has Lots of media hype The media hype around a crypto plays a major role in its price action.

Whenever a project is on the news for positive reasons, its price tends to jump. Ethereum is drawing all the right press at the moment. Some of the biggest names in crypto have been taunting it as a potential big mover that could outpace Bitcoin not just in gains, but in market capitalization.

Such positive press is key to the long-term value growth of Ethereum. Ethereum is one of the most secure blockchains Security is one of the most secure blockchains in the market, mainly due to its long UTXO. At the moment, it is a Proof-of-Stake blockchain, and anyone looking to compromise it would have to generate an almost impossible level of hash power.

Even after it shifts to Proof-of-Stake, it will be almost impossible to compromise it. It would be almost economically pointless to try and compromise it successfully. Its security is one of the key factors that make Ethereum a viable investment, both now, and in the future. Ethereum is a store of value Ethereum is one of the cryptocurrencies that some institutional players believe it is a tenable store of value.

This puts it in the same league as Gold, Silver, and real estate. If a portion of this amount is spent on Ethereum, its value will grow exponentially over time. This is a big deal because the huge number of DEXs running Ethereum projects create infinite demand for Ethereum. This could help anchor the value of Ethereum for years to come. It is practically impossible. Much better than relying on trust, right? Keeping the blockchain running takes a lot of computing power and electricity. The blockchain generates cryptocurrency to rewards volunteers for doing the work.

To make an informed decision, however, there still are a lot of things to cover, so keep reading. How Is Ether Mined? To keep the blockchain secure, it encrypts every transaction that happens on it. Then, the blockchain updates ledgers all over the world. The system records every change in blocks. When one block reaches its capacity, the blockchain creates another one. The blockchain encrypts each transaction. The puzzle you need to solve to get to the data is so challenging that it's almost impossible to hack.

You can call the people solving puzzles that make the blockchain work miners. Most Ethereum mining operations reach the industrial scale. Solving difficult puzzles to make Ether requires your system to run full throttle at all times. It costs a lot in electricity bills. The hardware wears out much faster than usual too. Have you ever grumbled about insane GPU prices? Now you know why they are like that. Unless you can invest a fortune in building your mining facility.

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Since the project started, thousands of complex programs in smart contracts have been developed on it. Many more are coming up, especially now that the world understands the potential of building on Ethereum. Since these projects need to buy Ethereum for them to use the EVM, then it means that the long-term demand of Ethereum is guaranteed. Ethereum is the second-largest cryptocurrency The ranking of a cryptocurrency on CoinMarketCap and other platforms matters.

Ethereum does not have this problem. It is the second-largest cryptocurrency by market capitalization, which means even a crypto newbie gets to see Ethereum, alongside Bitcoin when they first check out the market. This has been instrumental to drawing liquidity into Ethereum and by extension its demand. With crypto awareness on the rise, this is a factor that could see Ethereum gain consistently over the years. Don't Miss: Ethereum Price Predictions 3. While this may seem high, Ethereum still has lots of room for upside growth.

People now see cryptocurrencies as a legitimate alternative investment to traditional investments such as stocks and real estate. This spells good tidings for cryptos with strong fundamentals such as Bitcoin and Ethereum. Ethereum Technical Analysis points to bull strength Pro traders use a combination of technical and fundamental analysis before making their bets.

In the case of Ethereum, technical indicators are largely bullish. The same is supported by the moving average where the shorter-term exponential moving averages are trading firmly above the and day moving averages. With the technicals that bullish, supported by strong fundamentals, Ethereum is in a good place for more gains in short to medium term. Its current price action reflects this reality. Ethereum is gaining in institutional adoption Ethereum has been gaining in adoption over the years, and this will only grow with time.

This is alliance is made up of some of the largest institutions in the world, including JP Morgan. As decentralization takes root in society, these institutions will build even more on Ethereum and drive up the demand for ETH. This is a factor that will see the level of Ethereum rise in value going into the future. It opened up the way for an explosion of projects on the Ethereum blockchain.

Today, a huge chunk of projects in the crypto market are ERC20 tokens. The explosion of these tokens followed the ICO bubble of Since then, the number keeps on rising with new innovations such as DeFi and NFTs , further opening up the adoption of the Ethereum blockchain.

As more of these ERC tokens come into the market, the value of Ethereum will rise. Ethereum 2. The move solves two problems. The first one is that of scalability and transaction costs. Since there will no miners, the rising cost of gas that has posed a challenge in the past will be non-existent after the full transition.

Secondly, the shift will make Ethereum more environmentally friendly, a factor that could draw in environmentally conscious investors, especially institutional ones. Since its launch, many others such as Cardano, have come up. However, none of them has the market reputation of Ethereum. This explains why most new projects still launch on Ethereum despite its competitors positioning themselves as more efficient. Besides, now that Ethereum moved to Ethereum 2.

This will have the effect of pushing up its market share and, by extension its price. Ethereum has a quality developer team Ethereum has one of the best developer teams in crypto, rivalled only by that of Bitcoin. A person like Vitalik Buterin is a computing expert and was already creating scenarios for scaling solutions way before the current transition. With such a developer team at Ethereum, investors can expect this crypto to keep growing in value.

This is also a key factor to driving up to drawing in institutional players in the long run. Ethereum is one of the most decentralized cryptocurrencies In the crypto space, decentralization is the key to success. Quite logical considering that decentralization is the whole essence of the market, both for freedom and security. Just like Bitcoin, no single miner, or group of miners control the Ethereum mining process.

Ethereum is so decentralized that not even Vitalik Buterin can dictate the direction of Ethereum. This is a key security guarantee of Ethereum and one that will play into its value in the long run. Ethereum is time tested Ethereum is one of the oldest platform blockchains in the market and carries a significant volume of most projects ever launched. This also means, it has been tested to its ultimate capacity, and the upgrades its doing are based on market realities. A lot of its competitors are using metrics that have not yet tested, and they have a risk of failure.

For context, the Binance chain recently saw an increase in gas prices despite using cost and scalability as a key selling point. Ethereum has lots of long term believers One of the key indicators of a project with long-term potential is the number of people invested in it for the long run. Ethereum is one such project. Since the launch of Ethereum 2. This is an indicator that there are lots of people, wealthy ones that firmly believe in the viability of Ethereum as a long-term investment.

This is a factor that could see its value grow significantly in the long haul, and makes it a good investment at current prices. Check Out: Ethereum Price Prediction for and Ethereum has Lots of media hype The media hype around a crypto plays a major role in its price action. Whenever a project is on the news for positive reasons, its price tends to jump. Ethereum is drawing all the right press at the moment. Some of the biggest names in crypto have been taunting it as a potential big mover that could outpace Bitcoin not just in gains, but in market capitalization.

Such positive press is key to the long-term value growth of Ethereum. Ethereum is one of the most secure blockchains Security is one of the most secure blockchains in the market, mainly due to its long UTXO. At the moment, it is a Proof-of-Stake blockchain, and anyone looking to compromise it would have to generate an almost impossible level of hash power. Even after it shifts to Proof-of-Stake, it will be almost impossible to compromise it.

It would be almost economically pointless to try and compromise it successfully. Its security is one of the key factors that make Ethereum a viable investment, both now, and in the future. Ethereum is a store of value Ethereum is one of the cryptocurrencies that some institutional players believe it is a tenable store of value. This puts it in the same league as Gold, Silver, and real estate.

If a portion of this amount is spent on Ethereum, its value will grow exponentially over time. This is a big deal because the huge number of DEXs running Ethereum projects create infinite demand for Ethereum. This could help anchor the value of Ethereum for years to come. Ethereum has an Easy to understand programming language The growth of the Ethereum blockchain is premised on the number of projects launching on this blockchain. How Is Ether Mined?

To keep the blockchain secure, it encrypts every transaction that happens on it. Then, the blockchain updates ledgers all over the world. The system records every change in blocks. When one block reaches its capacity, the blockchain creates another one. The blockchain encrypts each transaction. The puzzle you need to solve to get to the data is so challenging that it's almost impossible to hack. You can call the people solving puzzles that make the blockchain work miners.

Most Ethereum mining operations reach the industrial scale. Solving difficult puzzles to make Ether requires your system to run full throttle at all times. It costs a lot in electricity bills. The hardware wears out much faster than usual too. Have you ever grumbled about insane GPU prices? Now you know why they are like that.

Unless you can invest a fortune in building your mining facility. Ethereum Transaction Speeds Scaling is one of the biggest obstacles to the adoption of blockchain technology. Vitalik Buterin, the co-Founder of Ethereum, believes that his blockchain could reach 1,, transactions per second someday.

Ethereum Safety Safety is one of the greatest Ethereum selling points. The apps built on this blockchain called dApps or decentralized apps are significantly safer and more resistant to hacking than the software you use now. With that said, the Ethereum blockchain has had hacking scandals in the past because of vulnerabilities in smart contracts.