WHAT IS ETHEREUM? HERE’S HOW TO INVEST IN ETHEREUM! A GUIDE TO ETHEREUM INVESTMENT

18TH OCTOBER, 2021  BSI 

WHAT IS ETHEREUM? 

Ethereum has become popular; crypto has seen its share of rising and fall since 2015. After the dramatic crash in the price of its currency Ether (ETH), the currency grew to more than 13,000% in 2017, attracting numerous global investors.

HOW TO INVEST IN ETHEREUM

If you are interested in ETH investment, you need an e-wallet where your dollars are exchanged for ETH. The users leverage the blockchain network to run dApps. The dApps are digital applications that run and exist on a P2P computer network and control a single authority. Examples of dApps include direct peer lending, online gaming, music streaming, insurance, code collaboration, and more. Considering Ethereum volatility, it is a highly volatile alternate asset.

The value of ETH increased this year when the digital art piece news was sold as the globe’s most expensive NFT for around 38K ETH. One of the complications is the ETH gas, a transaction fee that fluctuates within the system and is now more costly.

Ethereum for Investment Portfolio

A diversified portfolio consists of assets – bonds, stock mutual funds, and cash, hence before ETH purchase, it’s always good to check your investment portfolio to know your cryptos are in place. In addition, investors must look at whether long-term portfolio fundamentals are in place before drawing conclusions.

After a brief go-through of your portfolio, and it seems like you have a diversified portfolio, the step for ETH purchase is to add more diversification. Unfortunately, Crypto performance doesn’t tally with stock market performance, and the token volatilities are an essential factor, even having thousands of benefits.

ETH Affordability and Purchase Methods

Let’s dive into the significant questions investors face: how much ETH can you afford? Well, one must have a plan for the next five years or so before investing. So you must have a clear picture without the money you plan to put cash into any investment for the predictable future.

Why asked to plan your investment is to prevent crypto winter, where the entire market collapses due to price drop of total cryptos and seems to have no recovery for a long time. The right way to determine the ETH amount for your portfolio is to consider it an alternate risky asset.

Once your investments are in place, you will have to decide how and where to buy and store the ETH. There are 2 basic needs to hold and buy Ethereum: an exchange, where you can convert dollars to ETH and ETH wallet, where the ETH is digitally stored, and you have complete control over it.

Let’s dive into the significant questions investors face: how much ETH can you afford? Well, one must have a plan for the next five years or so before investing. So you must have a clear picture without the money you plan to put cash into any investment for the predictable future.

Why asked to plan your investment is to prevent crypto winter, where the entire market collapses due to price drop of total cryptos and seems to have no recovery for a long time. The right way to determine the ETH amount for your portfolio is to consider it an alternate risky asset.

Once your investments are in place, you will have to decide how and where to buy and store the ETH. There are 2 basic needs to hold and buy Ethereum: an exchange, where you can convert dollars to ETH and ETH wallet, where the ETH is digitally stored, and you have complete control over it.

 Business Software India develops exchange on Ethereum blockchain, ERC Token. Exchanges, the tokenized platform developed by Business Software India makes crypto trading easier for everyone.