Is Ethereum A Good Investment? Is It Worth Investing In 2021? Or Should One Stay Away?

Is Ethereum A Good Investment?

Is Ethereum A Good Investment

In this video, I discuss the question Is Ethereum A Good Investment by considering the pros and cons of Ethereum (ETH) as a long-term investment.

While I am fascinated by the Ethereum experiment (in particular DeFi), ETH is currently too speculative for me.

It has more potential upside than Bitcoin, but also more potential downside.

I am not a fan of the huge pre-mine or of Vitalik Buterin cashing in on 25% of his position.

This is the Cantillon Effect recreated in the crypto space.

The fact that ETH has a very visible founder and project leader (Vitalik Buterin) provides a possible single point of failure, who can be killed, bribed, or otherwise compromised.

I am also not a fan of the move to Proof of Stake, or the centralization of Ethereum’s infrastructure on Infura and AWS.

In addition, the future monetary policy of ETH is uncertain and impossible to predict. It has changed many times over the years already, while Bitcoin’s monetary policy has stayed constant and 100% predictable.

Store of value is the biggest use case on the planet, and I think BTC wins this use case (winner take all) over ETH.

I believe that BTC massively outperforms ETH over the next 5-10 years.

Over shorter time periods, ETH could certainly outperform, but trading in and out of it in order to eventually accumulate more Bitcoin is risky, very difficult to do, and not tax-efficient.

4 Tips to Invest in Cryptocurrency Safely

Speculations are consistently hazardous, however, a few specialists say digital money is one of the more risky speculations available today, based on Consumer Reports. Nonetheless, digital currencies are probably some of the most attractive products at the present time.

In early 2018, CNBC forecasted that the digital currency market was projected to arrive at a net worth of $1 trillion before the end of 2018.

Well, the overall market cap of cryptocurrencies was $1.15 trillion on February 5, 2021, when Bitcoin was nearing the $37,800 price mark and Ethereum was at $1,724. Fast forward to May 3, 2021: Bitcoin was up 53% at $58,000, Ethereum 84% to $3,170, and the combined market cap of all cryptos has now doubled to a jaw-dropping $2.3 trillion.

In case you are considering channeling some of your financial resources into cryptographic forms of money, these tips can help you arrive at well-considered decisions.

Research Crypto Exchanges

Before you allocate any of your investment funds into cryptocurrency, find out about digital currency exchange platforms.

These platforms offer the ability for you to purchase and sell cryptocurrencies. However, there are some 500 platforms to pick from, according to Do your due diligence, study reviews, and check with more experienced financial backers prior to pushing ahead.

Learn How to Store Your Digital Monies

In the event that you purchase cryptographic money, you need to store it. You can store it in a digital wallet or on an exchange. While there are various types of such wallets, each has its own advantages, specialized prerequisites, and security. Likewise, with the exchanges, you ought to research your storage options prior to investing.

Diversify Your Investment Portfolio

Spreading your eggs across multiple baskets is a key to any wise investment system, and it remains the same when you’re putting resources into digital currency as well. Try not to place the entirety of your cash in Bitcoin, for instance, merely because that is the name you know.

There are a huge number of alternatives, and it’s ideal to spread your investment around to a few altcoins (“alternative coins”) besides Bitcoin.

Get ready for Volatility

The digital money market is a very unstable one, so be ready for extreme highs and lows. You’ll likely experience emotional swings with the volatile prices.

In case you can’t deal with that, digital currency probably won’t be a suitable choice of investment for you.

Digital money is extremely popular at the present time. Nevertheless, be reminded that it’s as yet in its early stage. Putting resources into something that is new comes with its set of difficulties, so be readied. In the event that you intend to take the investment plunge, do your due diligence and contribute moderately to begin with.



Cryptocurrency Exchanges:

BlockFi Exchange:

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Sign up using the following link and you will earn $10 in BTC after making a min deposit of $100 into your BlockFi Interest Account (BIA).

Changelly Exchange:

For buying or trading one cryptocurrency with another cryptocurrency:

For buying Cryptocurrency with Fiat Money using Bank Card:

Kucoin Exchange:


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Disclaimer: We are not a financial advisor. We do not provide tax, legal, or accounting advice. This material has been prepared for entertainment purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.

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