Cryptocurrencies are quickly growing into, often discussed, mainstream investment vehicles for savings growth. Bitcoin, Litecoin, and perhaps most excitably Ethereum have flourished in the newly expanded buyer’s market. These digital currencies have outgrown their niche use as a transactional instrument for secure payment. Ethereum and others are now fully tradable and provide a unique investment opportunity for those looking to expand their portfolios.
Ethereum is functionally different from its cousins. Bitcoin was conceived as an alternative payment method to banking institutions and PayPal services. Ethereum, on the other hand, is a product of the centralizing force of online data. Its purpose is to serve as a platform to decentralize data in apps and services like Google and Amazon. All cryptocurrencies rely on “mining” efforts by remote users to validate transactions. Ethereum’s remote nodes also act as hubs for the decentralized data model that it hopes to promote.
Good intentions aside, this still begs the question – why invest in Ethereum? The answer couldn’t be simpler. Ethereum and cryptocurrencies in general can serve much like forex trading. The notion of trading real or “fiat” currencies can produce great profits to those educated in the nuance of the market. Likewise, learning how to trade eretheum can produce enormous financial gains for keen investors.
The key difference lies in the structure of the markets. Forex trading is rigid and market opening times dictate when price movements are peak. You may only see substantial movement in Dollar to Pound or Euro to Yen transactions during the short window in which market hours overlap. As well, the forex market closes during the weekend hours. The crypto market, in contrast, is always on and always moving with real world events.
Cryptocurrencies, by nature, are speculative investment vehicles, meaning that high risk is coupled with a high potential reward. Indeed, at this moment, Ethereum price is slowly declining in a bearish trend with analysis placing its basement somewhere just above the $200 mark. This is actually a positive for investors though. The market has seen a course correction this year after explosive growth in the final months of 2017, but analysts see the bear market coming to a close as we inch closer to the end of 2018. ShapeShift’s Eric Voorhees claims that the market has matured after this latest price bust and is poised for a similar vault heading in to 2019.
Returning to the Ethereum price point that low bound of $200 is a critical selling point for investors looking to diversify their portfolios. One key aspect of cryptocurrency trading is its use as a real monetary instrument – meaning you can buy portions of Bitcoin, Ethereum, or Monero. But with a price so near its theoretical floor, you can buy with a low degree of risk and in whole portions rather than percentages. With a price flying above $6000, Bitcoin does not offer the same feasibility, especially for first time investors looking to dip their feet into the crypto market. By buying whole Ethereum rather than in piecemeal, you will see the full effects of a market rebound as the price begins to rise once again. Last year. Ethereum’s price surged above $1300. If gains are to look similar, then now is certainly the time to buy.
Additionally, if you find yourself interested in the monetary usage of cryptocurrency then ethereum is a fantastic choice for your purposes. By building up an ethereum wallet and ether assets you have the capacity to add additional currencies built upon the ethereum concept and even create your own if you desire to experiment with the boundaries of the technology.
Ethereum is a great addition for anyone looking to expand their investments into something that admittedly carries a little more risk but holds the potential for enormous return.