How to invest in Ethereum?
The sound of cryptocurrency coins echoes across the world and many people find it enticing enough to try their hand at investing in cryptos. Ethereum (ETH) is no different from others in that respect and its rapid expansion surely gives wind to its sails. But, is Ethereum really a lucrative investment opportunity and should you really invest in it in the long run? Let’s find this out.
Before you take out your wallet, you better be sure that you actually know how to invest in Ethereum. First, you’ll first have to acquire a crypto wallet to store it and look for a cryptocurrency exchange which allows buying and investing in Ethereum. These include the likes of Coinbase, Cex.io, Coinmama and others. Make sure you look only for the most professional and well-established ones, as well as check their fees and level of support for doing business in your region.
In any case, they will offer you to use either your fiat currency or another cryptocurrency to buy Ethereum. The registration process is simple: you have to sign up for an account, verify your identity and put some funds in it. No matter which wallet option you choose, you can easily transfer your ETH from the exchange to it. Bear in mind that crypto exchanges are excellent options for beginners, while more experienced users will appreciate their customer support, security and the ability to use credit cards for transactions. The downside are the fees which may not be to everyone’s liking.
If you are looking to invest in Ethereum, peer-to-peer (P2P) exchanges represent an informal alternative for investing in Ethereum. They operate as web-based platforms which allow you to anonymously connect with other users and buy or sell Ethereum based on mutually agreed arrangements. This means that you can either pay your seller via PayPal, credit card or even hard cash, in case you decide to meet up in person. The most popular platform for this type of investment today is LocalEthereum. Still, these platforms may be a home to various scammers, so you better exercise a healthy dose of caution here.
Whatever option you choose, there are things to know before investing in Ethereum/ETH. The first thing to know is that Ethereum market is still volatile, just like it is the case with any cryptocurrency. This makes them slightly riskier compared to the traditional investment enterprises. Still, your investment can pay off handsomely, too, since Ethereum is among the three most popular cryptocurrencies used for all types of transactions today.
Also, the most popular approach to investing in Ethereum is buying it when its price is low and selling it later when it goes up. Once the prices go down, you can re-buy it and re-sell in yet another investment cycle. Yet, you have to be aware that waiting too long for either buying or selling can make you lose on your investment. You can try to mitigate this by hiring a consultant or doing a research on price trends, but this can cost additional time and money.
Since no one knows what the future may hold, the golden rule is to invest in Ethereum only as much as you are willing to lose.