Cryptocurrencies are like the next big thing in the financial market, which is giving fiat currencies run for their money. And ethereum is one digital currency that is going hand in hand with the world’s biggest virtual currency bitcoin, which created another record on 30 November 2020—drawing more attention of enthusiastic traders at their place.
In the third quarter result of 2020, the market capitalization of Ethereum stands at USD 40.6 billion. That speaks about the strength it is gaining with everyday trading.
In 2019, the market value of ethereum stood at $16.34. That is 2.5X jump in less than a year. People are bestowing their trust in it. Also, there is a sense of realisation in sundry traders that time is changing and it is mindful to walk as per trends. Having seen the ruthless menacing act by an unforeseen virus-like COVID-19, people are preparing themselves mentally and creating a wall for guarding to any such problems.
Ethereum has a really fine integrated network that operates on blockchain and encryption technology. Today, seeing at the market growth and investment flowing in financial markets, the future for crypto trading is getting brighter by the day and night.
Need of ethereum as cryptocurrency
People who like to stay free from any disturbances or interference and find it unwanted, cryptocurrencies like ethereum are boon for them. There is no hassle for people while they sell or purchase it. They can trade it on any exchange without seeking the help of a broker. However, we recommend you to take assistance from brokers that have licensing from a regulated authority, and a body of regulation regulates it regularly.
Besides, if you can see the registration number, then it is a welcome thing and substantiates the guarantee of zero tolerance for fraud. Global Trade ATF, Oinvest, T1markets, ETFinance, HFTrading etc. are some of the top brokers in the market that comply with the guidelines of authorities and meet the necessities of traders.
In real means, ethereum is an operating system which works as an open-source way. Thus, its availability to all makes it more user friendly and approachable.
It renders smart operating functionality to its subscribers and makes things easier for them. The distributed computer platform supports applications like DApps (developing decentralised digital applications). The blockchain technology works in the background, which plays more than a supporting role.
There is a virtual machine offered by ethereum called EVM (Ethereum Virtual Machine). It has the ability to run complex scripts with suave.
What is the benefit of investing in ethereum?
A novice trader would find it a little awkward while trading ethereum coins. However, it is a matter of spending a few moments with the digital currency. One of the biggest factors that influence and invite investment in ethereum is its second iteration, called ethereum 2.0. It focuses on staking and not mining like other conventional cryptocurrencies in the financial market.
Notably, a proof of stake involves several tokenisms and features like network support and active valid transaction. However, you have to get hold of funds in your crypto wallet than can help in ensuring safety and security.
One of the prominent reason to use ethereum is the blockchain technology that inherits the power of attracting buyers and sellers. The technology facilitates online payments, transactions and distribution of assets in a portfolio.
As per data by the World Economic Forum (World Economic Forum), by 2025-2027, approximately 10 per cent of the global GDP would get facilitated by blockchain technology. That’s a massive number considering the population of the world is growing at a tremendous pace.
Both ethereum and bitcoin use tokens and distributed ledgers, but the former has the advantage that it is not as expensive as the latter, which broke all records and touched USD 22,112.90 mark on 17 December 2020. Not everyone can afford that high a rate.
Also, you have to spend around 10 minutes to an entire day for transacting bitcoins; whereas ethereum takes only 15 seconds maximum.
Who should buy Ethereum?
An ethereum makes your portfolio stable and gives a boost to your aspiration to become a wealthy trader. Here are four types of investors who should include the crypto coin:-
- Blockchain enthusiasts:- Traders who have trust in the safety and security features and in the impact that blockchain renders should invest in ethereum. Also, it is the second-largest cryptocurrency using technology.
- Day traders:- Each day, ethereum witnesses multiple-percentage swings, so traders have multi-fold chances of earning making a huge income out of these fluctuations. So, investors, who believe in short-term trades it is appropriate.
- Forex traders :- When traditional currencies do not support the ideology and tactics of traders, then cryptocurrencies are sighted as safe-havens. As you know, ethereum trades differently from other crypto coins, it will soon become a safe haven equivalent to gold.
- Cryptocurrency traders:- For enhancing your cryptocurrency portfolio, when bitcoin is going out of hands for beginners, ethereum is the best buy.
Conclusion
Ethereum definitely runs on blockchain-enabled application, but it is quite nuanced and ahead of times compared to other cryptocurrencies. It has excellent volumes and offers stability in the digital currency market where other crypto coins fluctuate and can lend losses. On 17 December 2020, ethereum was hovering around USD 644.14, which is getable for many users. It is only going to grow further.
