Introduction to Ethereum Coin
In the past, Ethereum was used as an investment option; currently, the price of ethereum has gone up, making few people invest in this cryptocurrency. Ethereum hit an ATH in 2021, and it has been seen as one of the sole competitors for Bitcoin in terms of market cap. If the user plans to buy ethereum, they should convert their USD to ETH or ether(the native token of ethereum). Users who own ether can use it as a form of payment for goods and services, or they can use it to pay the fees to cover the processing power used for carrying out complex transactions in fields like art, computer science, and finance.
History of Ethereum Coin
Launched in 2015, Ethereum was invented by Vitalik Buterin, who was initially a programmer. It was invented to combat the problems that Bitcoin faces. Ethereum is a blockchain network, and its native currency is ether. Ether has been used in several use cases; users can trade and buy ethereum as a long-term investment; It can also be used as a platform for software developers to develop new applications. Ethereum is also used for buying, trading, and selling cryptocurrencies. Some of the apps include payment platforms, lending apps, etc.
Experts Talk on Ethereum Price Up and Down
Recently, cryptocurrency prices have been fluctuating. According to the ETH price forecast, if the user is thinking of a long-term investment, it is the best bet. Even though there is high volatility involved with the cryptocurrency market, few cryptocurrencies can be added to the Crypto portfolio. Ethereum has seen numerous price swings; in 2016, ethereum prices fluctuated between $5 and $15; in 2018, the price went to an all-time high of $1500; and in 2018 December, the price of ethereum went down to $100.
Advantages of Ethereum Coin
Here are the few advantages if Ethereum
- Ethereum was developed based on the principles of decentralized finance, popularly known as DeFi; unlike other cryptocurrencies, the products and services available on ethereum can be accessed by anyone who has access to the internet.
- Ethereum’s smart contracts permit the developers to create decentralized applications that can be used for various purposes. Some of the applications are decentralized lending platforms, financial tools for cryptocurrency exchanges, data services like Matcha (which searches numerous cryptocurrency exchanges for the best price for a specific cryptocurrency). Certain categories of dapps can be used for selling and buying gaming, developer technology, and digital artwork.
- Ethereum follows an open-source concept that allows the developers to create new cryptocurrencies like XRP and chainlink, which are well-known tokens. Some of these tokens are in cryptocurrencies like Uniswap, USD coin, Tether, etc.
Best Ethereum Exchanges to Buy and Sell ETH
Ethereum can be brought into cryptocurrency exchanges. To get started, here is the list of best exchanges for buying and selling ETH.
Poloniex
One of the well-known digital asset exchanges where the users can securely trade with advanced trading tools is Poloniex. This platform permits exchanging digital assets stored in offline cold storage that minimizes the risk of theft and hacks.
Kraken
One of the well-known exchanges, Kraken, is developed for professional traders who trade cryptocurrencies daily. This cryptocurrency exchange is preferred by all traders and offers a trading engine that can be used with advanced order types. It also permits margin trading so that the users can leverage on short or longer market positions.
Coinbase
Coinbase cryptocurrency exchange is one of the most popular exchanges where users can buy, sell, and trade popular cryptocurrencies like Bitcoin, Litecoin, ethereum, etc., using their local currency. This cryptocurrency exchange also provides a vault that enhances the security of the securely stored assets in offline storage. It needs numerous approvals for carrying out withdrawals and offers more control of the user funds. Here you can also check about are cryptocurrency exchanges safe enough?
Future Scope of Ethereum Coin
Ethereum has profound use cases, and people can use it to run decentralized applications or dApps. dApps are used to remove middlemen or intermediaries; it relies on smart contracts that run on ethereum. Further, if the user wants to run this application, they need ether to pay for gas, which measures the amount of computing power required to run an application. If the user is looking for a balanced, highly diversified portfolio, it is the best choice.
Final Thoughts
To sum up, Ethereum can be added to the crypto portfolio as its value increases. Still, the user should think that cryptocurrencies are risky assets, and they should allocate a small part of funds to purchase cryptocurrencies which might be beneficial in the long term. The user should research how much they need to invest and analyze the asset’s price before they invest in cryptocurrency. The user should start small if they invest in cryptos and invest that amount of money they can afford to lose.