Cryptocurrency investment has grown significantly in the past few years, and Ethereum has been one of the most popular options outside of Bitcoin. Ethereum is the second-largest cryptocurrency by market capitalization, and it offers a wide range of benefits compared to other cryptos. In this guide, we will talk about how to invest and hold Ethereum in your portfolio and why it’s an excellent investment option.
- What is Ethereum?
Ethereum is a decentralized, open-source blockchain platform that allows developers to build smart contracts and decentralized applications (dapps) on its blockchain. This means that anyone can build their blockchain-based application on the Ethereum network. The Ethereum blockchain operates with a cryptocurrency called Ether (ETH), which is used to pay for transaction fees and incentivize developers to create new applications on the network. Ether is the second-largest cryptocurrency by market capitalization, with a current market capitalization of around $200 billion.
- How to buy Ethereum?
The most common way to buy Ethereum is through a cryptocurrency exchange. There are numerous cryptocurrency exchanges available in the market, including popular ones like Binance, Coinbase, Kraken, etc. To start buy ethereum, you will first need to create an account on any of these exchanges by providing your basic details like name, email id, and phone number. Once your account is set up, you will need to verify your identity by uploading a government-issued ID. Once verified, you can add funds to your account, either through a bank transfer or a credit/debit card. After that, you can easily buy Ether by placing an order on the exchange.
- How to store Ethereum?
Storing Ethereum is quite similar to storing Bitcoin or any other cryptocurrency. You can store Ether in an exchange wallet, but it’s not recommended since it’s less secure. The best way to store your Ether is by using a hardware wallet like Ledger, Trezor, or Keepkey. These wallets are physical devices that store your Ethereum offline, keeping it safe from cyber attacks. They come with a PIN code or a recovery phrase, which you can use to access your wallet and transfer your Ether anytime you want.
- Should you hold Ethereum?
Holding Ethereum can be an excellent investment option for several reasons. Firstly, Ethereum is a decentralized network with thousands of developers building dapps on it. This means that there are numerous use cases and applications for Ethereum, and it’s not just a platform for cryptocurrencies. Secondly, Ethereum is undergoing significant upgrades that will improve its scalability and transaction speed, making it even more valuable in the future. Finally, Ethereum is a relatively stable cryptocurrency compared to others, which means it’s less volatile and less risky.
- Conclusion:
Investing in Ethereum can be a great investment option for those who believe in the future of blockchain technology. Ethereum has a wide range of use cases and applications, which makes it more stable and less risky than other cryptocurrencies. To invest in Ethereum, you need to create an account on a cryptocurrency exchange, buy Ether, and store it in a hardware wallet. Holding Ethereum can also be a good investment option since it has significant upgrades planned for the future. If you’re looking to diversify your portfolio and invest in cryptocurrencies, Ethereum is an excellent place to start.
