Is Ethereum a Good or Bad Investment In 2021?
Ethereum is another cryptocurrency that has made huge growth in the financial world after Bitcoin. Yet, as the bear market continues, many crypto traders are beginning to wonder if Ethereum is a bad investment.
According to a recent study, Ethereum has the third-highest market value at $16.34 billion, falling behind bitcoin at $92.56 billion and ripple at $29.35 billion As of April 2019.
Ether is used by many brands, businesses, and companies to complete transactions. It is a great alternative to Bitcoin.
People oftentimes consider Ethereum as much better than Bitcoin because it was developed after Bitcoin, and it overcame all the negative factors of Bitcoin.
Also, it has both an industrial value as well as an intrinsic value. When comparing Bitcoin and Ethereum, Bitcoin is considered gold, and Ethereum is considered a diamond because people invest in Ethereum. After all, it has high industrial value and intrinsic value.
After the Ethereum blockchain token known as ether (ETH) was announced as one of the world’s top cryptocurrencies. Investors became curious and began in search of the best possible ways to buy this digital currency.
In fact, If you type the word ‘Ethereum’ in the search engine, you will most likely come across questions like “Is Ethereum a Bad Investment?” “should I buy Ethereum 2021?” “how do I trade Ethereum?”
Let’s start with how you can invest in Ethereum in a way that will profit you.
How to Invest in Ethereum
There are numerous Ethereum uses. Like bitcoin, before you get into investing or mining Ethereum, you need to identify a trading platform, create an account, and deposit currency.
#1. Identify a trading platform
The first step to trading Ethereum is to identify the best trading platform. Next is the type of exchange.
Remember that with rapid innovation, cryptocurrencies are heavily unregulated. This can create a major market opportunity, but it can also increase the risk of fraud.
That is why it is important that you rely on the credibility of your chosen trading platform.
Some of the most important questions to ask yourself when trading are: are they licensed, how secure is their website, how safe is your money?
There are a few options when it comes to trading cryptocurrencies in Nigeria. One of the top and most reliable platforms is Bekonta.
On Bekonta, you can enjoy unbeatable exchange rates for buy and sell transactions. Our platform offers bill payments, Instant Payouts, and many more features that are not obtainable on other trading mediums.
#2. Create an account
Once you have chosen a trading platform that suits your needs, the next step is to open an account. This process is similar to opening an account with a brokerage platform. You must provide your name, address, social security number, certain forms of identification, and more. Once you’re familiar with a site, opening an account can usually be done pretty quickly
Here are steps to sign up with Ethereum account:
- Download the Bekonta app on Google play store on your device.
- To get started, you need to register and sign up. This is very easy. Click the Signup button and input your registration details. These details majorly include your names, e-mail address, and password of your choice. This will automatically mandate a mail from the platform to the e-mail address you used, requesting you to complete your verification.
- Login to Bekonta. A message will pop up on your dashboard requesting you to complete your KYC verification and set up your transaction pin.
- Click on the message and set up your 4-digit pin.
- Just a step further, another e-mail will be sent to you that contains a six-digit one-time password (OTP).
- Copy the pin and paste it where it’s required and you have successfully completed your password verification.
- Furthermore, to carry out an effective transaction, you will undergo other KYC verifications. This is necessary to facilitate tight security checks and enhance effective transactions.
Bekonta requires you to verify your account to ensure that your account complies with legal requirements. Verification can take an hour to possibly a day or two.
#3. Deposit Currency
Once you’re done with the account opening, you need to deposit money into your account.
After verifying your payment details, add money through your bank account or your deposited debit card.
Bekonta does not have high minimum investments, so you can invest as little as $5 or $1,000 or more.
#4. Start Trading
With a verified account and funds deposited into this account, you can start buying Ethereum and other cryptocurrencies in Nigeria through Bekonta. Next is to confirm transactions and then allow processing time, which can also depend on the total number of transactions requested.
#5. Withdraw ETH in a Wallet
Once you buy ETH through the exchange, you can withdraw that currency into your bank account or wallet that you control. Fiat exchanges make it easy to withdraw ETH by simply selling the proceeds and transferring them to your bank account.
Once you have Ethereum, you can use it to run decentralized apps (often called “dapps”), which are often similar to the apps we use today, except that they are designed to push middlemen out of the picture.
These dapps are based on Ethereum Smart Contracts- code that automatically executes the terms of an agreement so that users don’t have to rely on a third party to enforce the rules.
Ethereum potential- Should I buy Ethereum 2021?
The projected growth of Ethereum is high, as the blockchain is not only used for smart contracts and transactions but the actual crypto assets are often built on top of the Ethereum blockchain, adding value to it as speculation about the future of Ethereum.
Analysts at Wall Street giant Goldman Sachs have predicted Ethereum has the potential to eclipse bitcoin in the coming years — and warned the extreme crypto price volatility means it can’t compete directly as a safe haven asset like gold.
McCann, who is a trader himself, speculates that the price per Ethereum could reach $50,000 per ETH in March 2022. The early Bitcoin investor and angel investor based the theory on a strike price of an options contract, which should expire at that point.
Based on experts and analysts Ethereum price outlook is as follows:
Ethereum Price Forecasts 2022–2023
After Ethereum potentially hits $14,000 per ETH, it could enter another bear market. Note that the price action would play similarly to the previous bear market and the next bear market floor would fall within the current consolidation range. That suggests that the resistance and support that is currently being built will be tested again in a year or more.
Ethereum Price Forecasts 2024–2025 and Beyond
Just as a bear market should follow a high in the bull cycle, once Ethereum bottoms again, it’s time to rebuild a position for the next rally. Additional parabolic curves and past cycles were superimposed over a pitchfork channel to allow for an estimate of price growth based on history and current price levels.
Ethereum is indeed a special technology that could completely change the world as more and more is built on top of the smart contract-focused protocol.
However, the market for all cryptocurrencies is volatile, making investing in Ethereum risky, but sometimes it can be profitable if invested at the right time and you won’t have any regrets if you trade on the right platform.
One of the safest platforms to trade Ethereum and other cryptocurrencies is Bekonta especially if you’re Nigerian.
Bekonta focuses on making and adding more money to your portfolio while cutting your expenses.
You can access tons of incredible features like Affiliate Program, Instant Transfer and Payouts, Secured Trading, and many more. To get started, simply log on to www. bekonta.com.