Key takeaways:
- Ethereum is quickly closing the gap with Bitcoin, on the tailwind of rapidly growing DeFi ecosystem and innovative blockchain features
- The price of Ether is currently in an upwards trend that started in the middle of July, making it an enticing investment proposition
- Before making any kind of investment, familiarize yourself with the risks associated with trading crypto and regularly check quality websites
While Bitcoin is still the largest cryptocurrency, both in terms of market capitalization and the level of adoption, Ethereum is quickly closing the gap. The ecosystem of smart contracts that open up a world of decentralized finance (DeFi) possibilities, growing non-fungible tokens (NFTs) popularity and the rapid protocol development have helped Ethereum to cement itself as a clear number two in the cryptocurrency space. Visit https://cryptomeister.com for information about Ethereum.
A quick overview of the Ethereum platform: Pros and Cons
Ethereum sparked a mini-revolution in the crypto sector when it introduced the innovative approach of using blockchain technology in order to facilitate smart contract functionality on a large scale. Smart contracts allow various types of agreements to be carried out and self-executed without the need for a centralized authority or a third party.
Ethereum network’s wide array of features has made the platform the top choice for the creation and development of decentralized apps. Having no intermediaries in the transaction process is also a big advantage, which most cryptocurrencies enjoy when compared to traditional systems of financial transactions.
On the other hand, there are a couple of drawbacks when it comes to Ethereum. With the rapid development of the Ethereum blockchain and continuously increasing user adoption, transaction costs have gone up over the years. The potential for inflation is another thorn in the side of Ethereum, as there is not an artificially limited supply of Ether, as its for example with Bitcoin.
The engaged community of software developers is aware of the aforementioned problems and is looking for ways to resolve them as quickly as possible. For instance, in order to create deflationary pressure and normalize gas fees on Ether transactions, London Hard Fork was launched on August 5.
Although it may seem it has been around forever, Ethereum is still a relatively new project and it is very hard to predict what the future holds in store. If the short history is any indication, its future is bright.
Where and how to buy Ethereum?
To buy Ethereum tokens, trading under the ETH ticker and also known as Ether, you must follow a simple process that is similar for all digital currencies.
First, you have to pick a cryptocurrency exchange platform. Binance, Coinbase are the most popular crypto brokers, but there are countless options to choose from on the market. Once you have chosen your preferred exchange, you will need to onboard fiat on your exchange account. Now you are ready to buy Ether.
After you have Ether in your virtual account, you can use it to trade or decide to hold it. If you are planning to hold on to your ETH assets for a longer period of time, it is advised to transfer your funds to a software or hardware crypto wallet for security purposes.
Is Ethereum a good investment?
For a mainstream crowd, investing in Bitcoin might seem as an obvious choice. However, there are clear benefits to investing in Etheruem. Currently, the second largest crypto is on clear upwards momentum that began as the London upgrade launch date inched closer.
Also, the upcoming Ethereum 2.0 upgrade that is coming sometime in December of this year will very likely increase demand for Ether even further. ETH also enables users to invest in various crypto projects that are built on the Ethereum network.
As is always the case before making any kind of investment decision, it is best to consult with financial experts to get familiar with the risks associated with investing in crypto assets.
