Every crypto coin is a risky investment, no matter if it is famous or not, but a strategic decision can also make it a perfect investment; you need the right and deep research about the crypto coin you will choose. Bitcoin is the first Good investment; many people invested in it and became millionaires and billionaires, but this coin’s value is very high (30,947 dollars). It is complex for ordinary people to buy and put their savings at risk. If you are interested in bitcoin trading check why is cryptocurrency so popular now.
Ethereum in brief
Ethereum came into existence after the five years of bitcoin launch by the programmer of Vitalik Buterin and became the second-largest crypto coin in market capitalization and value. This crypto coin works on the decentralized platform called Ethereum blockchain, and there are two blockchains of ethereum:- First is Ethereum the second is Ethereum classic. The value of Ethereum in the initial stage was less than a dollar and reached over 4,500 dollars last year, and the current value is 2,321 dollars at the time of writing. The smart contract makes it different and valuable from other crypto coins on networks with multiple uses.
Understanding the Ethereum blockchain
Ethereum was also come into existence to remove third parties but uses intelligent contracts so that it would be different from Bitcoin. If you create a second bitcoin, there are probably chances it will not go viral, or people will not buy your bitcoin. So Ethereum is different from bitcoin in the case of every feature, but these both currencies are decentralized currencies that use the blockchain system. Intelligent contacts are the code that runs automatically, and there is no specific account to control it on the blockchain. Blockchain is an internet space hosted on the computer of miners around the world means many people are controlling or managing people, making it decentralized.
Factors affecting Ethereum value?
You see that every second, day, and year, the value of Ethereum changes because of its decentralized system, and there are the following factors that affect its value given below:-
- User traffic:- When people search on Google or the web about Ethereum, many articles claim that Ethereum is the alternative to bitcoin and a perfect investment for earning money. So the bitcoin users and people who cannot invest in bitcoin are researching the choice, and traffic is going to Ethereum cryptocurrency. Thus, the increasing number of Ethereum users will also pump the value of this crypto coin.
- NFTs: NFTs stands for Non-Fungible Tokens that only work on Ethereum crypto coins means if you want to buy the NFTs, you have to purchase Ethereum first. Nowadays, many people are investing in NFTs, and they are also purchasing Ethereum to buy NFTs, which means the price of this currency is rising by increasing the number of buyers.
- First mover advantage:- There are over thousands of cryptocurrencies on the network which means competition is very high. Still, many people say that Ethereum has the first-mover advantage because it is environmentally friendly and has had a long period of success. Bitcoin requires a lot of energy for production (mining), but there is less energy required in Ethereum mining.
- Trendy news:- Many popular new websites publish daily articles about cryptocurrency. A massive reader base of these websites influences them through the surprising information about the Ethereum and other cryptic coins that also create FOMO (fear of missing out). People take the buying selling decision immediately. So the crypto news, whether it is on social media platforms, websites, or news tv channels, gets the attention of crypto users and directly influences the value.
Is Ethereum a Good investment?
To find the best crypto coin as a long-term investment, the main things to evaluate are features, pros and cons, and current government policies about cryptocurrencies. There are many benefits of Ethereum over the other crypto coins on the network, and many people have already invested and made huge profits from it. Now, people also started investing in Non-Fungible Tokens that require Ethereum to purchase. Its highly recommended that you take your own risk, so research it properly before investing in any crypto coin. This reading is just for the information objective, and we do not take it as advice.