Starting its journey as an antithesis of Bitcoin — the only cryptocurrency then — Ethereum has emerged as one of the biggest cryptocurrencies in the financial market.
It is an open-source decentralised blockchain technology that powers everything from decentralised finance to non-fungible tokens.
Users often get discouraged by Ethereum’s volatility but there are a host of unique benefits that make it a desirable choice in the market today.
If you are looking to invest in cryptocurrencies and are eyeing Ethereum as your vehicle into the market, here are the top 5 reasons why you should absolutely go for it.
1. Second largest cryptocurrency
One of the biggest apprehensions people have about investing in any kind of crypto is a lack of trust. Many people still think of them as a gimmick that may fade away with time. Ethereum along with Bitcoin has proved this wrong.
You can question the legitimacy of newer, obscure, or lesser-known cryptos entering the market. However, Ethereum has long established its credibility and it is the second-largest cryptocurrency in volume and the most used cryptocurrency network in general.
It is one of the safest options to invest in terms of the legitimacy of the cryptocurrency. Moreover, all signs point to it only growing in the future.
2. Blockchain is the future
Ethereum doesn’t just use blockchain technology, it is the very software that runs a blockchain. It is believed that blockchain technology will be the future of financial markets and adjacent industries.
Meaning it will play a defining role in it. This in turn makes Ethereum a hugely profitable prospect. It is a secure investment that will boost your portfolio. You get the option to tap into many markets that use blockchain.
Ethereum is not a commodity or medium of exchange. Rather it is the framework that powers various applications. This makes Ethereum extremely flexible. It will not be an understatement to say the possibilities with it are limitless.
It can act as money that you exchange for goods and services you purchase. It can also act as a store of value or a digital commodity. Other cryptocurrencies can be issued on it. It is also a platform for non-fungible tokens and decentralised finance.
The use of Ethereum gives you plenty of options to use it. You may try your hand at all its uses to see what works best for you. This flexibility that it offers makes Ethereum an extremely desirable investment option.
4. ETH 2.0 is coming
The cryptocurrency has historically suffered from having a high fee for its usage. It is actively working to overcome this shortcoming in the form of ETH 2.0 that is in the works. Companies like Avalanche and Solana are working to reduce the fees of their usage.
The plan is to shift the entire framework to a less costly proof-of-stake protocol. This change will also reduce its energy consumption by around 99%. The shift will make Ethereum an extremely accessible viable option for traders around the world.
5. Thrive on its volatility
Ethereum has historically been considered a volatile cryptocurrency, meaning it is prone to extreme changes in its value. However, smart traders have learned to use their unpredictable nature to their benefit.
They study the market trends to capitalise on Ethereum’s unpredictable nature and make hefty profits. This may require some research and work from you, but it can certainly help you procure big gains in the market.
What is more, you don’t have to worry about inflation harming your earnings at the market. Ethereum is not regulated by governments like other cryptos. It has a transparent inflation plan. Blockchain is unlimited in nature, which means the crypto will not deflate either.
Ethereum has been one of the pioneers of cryptocurrency and has continued to thrive ever since its debut in the market.
It is different from other cryptos in design and framework, helping it carve its own path. It poses limitless possibilities to be used today in the markets for the future.
It is expected to go even bigger in the coming days, thanks to ETH 2.0 — an updated form of Ethereum that strives to eradicate its shortcomings.
Ethereum is an excellent option to invest in right now that will guarantee you remarkable returns. Make sure to research the market on your own before you go all in.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision. London Loves Business bears no responsibility for any gains or losses.