Is Ethereum the best investment

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Investing in Ethereum: is the alternative to Bitcoin worthwhile?

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Anyone who invested in a crypto currency at the beginning of 2017 could look forward to an extremely attractive Christmas present twelve months later: In 2017 there was no crypto currency that did not bring high profits. Bitcoin shot from US $ 1,000 to just under US $ 20,000, Ripple climbed from US $ 0.006 to over US $ 3 and Ethereum rose from around US $ 8 to over US $ 1,400.

However, the crash followed a little later: Investors who only invested their money towards the end of 2017 were the big losers - in 2018 it only went down. But even if many investors suffered high losses, digital currencies now seem to be making a comeback. Many experts also speak of a "crypto spring".


Ethereum: the eternal number 2?

Even if Bitcoin is the absolute number 1 in terms of market capitalization, there are still other interesting cryptocurrencies that should not be ignored. Among other things, Ethereum, currently in second place in the ranking of the top 100 crypto currencies, can also be mentioned here. Ethereum is not just a digital currency, but a platform for decentralized apps and smart contracts. The goal that is being pursued here? The creation of an ecosystem, on the basis of which your own programs such as crypto projects then run.

Above all, the so-called smart contracts are of essential importance here. These are digital contracts based on “if-then” functions. The software checks the content of the contract and ensures that it is implemented automatically - so the person takes a back seat.

The cryptocurrency that is used to pay the fees on the platform is called ether.


What investors should look out for

So if you invest your money in Ethereum, it is not just about a digital currency, but about a company - an aspect that should not be ignored. But what else should you watch out for when you put your money in Ethereum?

You need an Ethereum wallet. This is a digital wallet in which the purchased coins are then stored. So you have to find out in advance who is providing a wallet for Ethereum.

If you invest in Ethereum, i.e. if you then exchange euros (or another fiat currency) for digital coins, the fees are of course also relevant. So you should make a comparison in advance so as not to experience any nasty surprises. Test reports from independent platforms that can be found on the Internet are of particular interest here.


There is still room for improvement

If you take into account the price development documented in 2017, it quickly becomes clear that an investment in Ethereum could bring high profits. However, the year 2018 also impressively showed that high losses cannot be ruled out. So how should you decide if you want to invest your money profitably?

First of all, the question arises whether you haven't already missed the best time to start. At the beginning of the year, Ethereum was still in the area of ​​100 US dollars - in mid-May it was already climbing towards 250 US dollars. However, it is still around 81 percent below the all-time high. This means that there is still a lot of room for improvement. The forecasts are also particularly promising: Numerous experts assume that digital currencies could take off again in 2019 - especially because Bitcoin is also on a high. The mother of all cryptocurrencies has climbed from 3,500 US dollars (January) to over 8,000 US dollars (mid-May).


Get in or wait for a correction?

Even if the price of Ethereum has more than doubled since the beginning of the year, that does not automatically mean that you have to wait for a correction now. The probability that the Ethereum price will continue to rise is high.

However, one should not believe that profits are inevitable. The forecasts are promising, but sudden losses, for example due to unforeseeable events, can never be completely ruled out.