Let's put that performance in perspective. Ethereums price has significantly jumped, but it has also seen major dips. Bitcoin Is Seeing A Resurgence This Year After A Challenging 2022: Heres Why, How Crypto Diversification Can Protect Your Portfolio Against Volatility. Bitcoin ($BTC) or Ether ($ETH): Which Crypto Coin Is a Better Since the hard fork of August 2021, Ethereum has experienced a massive change in its tokenomics. Both have the potential to perform well over time as the world continues its shift to digital and cryptocurrency's acceptance grows. The newest difference between Bitcoin and Ethereum has arisen after the completion of the Ethereum "Merge" in September 2022. This could result in more volatility and greater risk. Is Ethereum a good investment andwhy Ethereum may be worth buying in 2023. Simply put, Ethereum is a smart computer. Ethereum is a volatile investment, so be sure you're comfortable with risk before you buy. Yield-hungry investors can make use of a variety of income-generating assets. All rights reserved. Risky investments such as cryptocurrency can affect an investors total portfolio. Ether might see broader adoption after the network upgrade is complete, which should boost its price. Making the world smarter, happier, and richer. When more people hold Ethereum for a more extended period, it suggests that they believe in its long-term value and potential. Even after a severe crypto market pullback in 2022, Ethereum was recently trading for around $1,628, which means it has advanced 575-fold in less than . Analytics company Microstrategy Inc. (MSTR) is the biggest corporate BTC holder. Answer (1 of 246): Asides from Bitcoin, Ethereum is the next big thing about cryptocurrency. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. As the de facto cryptocurrency leader, no other coin even comes close to Bitcoin. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Collectively, we have over 25 years of experience in the crypto world and are all passionate about guiding people through the complex world of crypto investing. But is it time to buy? It's also possible to invest in the Ethereum technology. If you're on the fence about investing, there are two reasons to consider buying now -- and one reason to avoid it. If the price goes down -- the CEO wont quit or lay off a bunch of people to please the stockholders. Collectively we have over 25 years of experience in cryptocurrency and we are passionate about guiding people through the complex world of crypto investing. Health care stocks dominate this year's biggest stock market gainers. The two leading cryptocurrencies both suffered a severe sell-off in 2022. ETHDenver, unlike almost any crypto event that's sort of in the public eye, has the edge and energy of a great punk rock or hip hop show. 2023Cryptomaniaks. The great thing about institutional investors is that they tend to have a long horizon. Of course, there is no guarantee that it will. This site contains affiliate links. Let's put that performance in perspective. Bitcoin vs. Ethereum: Which Should You Invest in Now? Unlike small altcoins, it has less of a chance to crash and burn, but it still has the potential to moon and bring its investors astronomical profits. One of them is the trouble of buying Ethereum. But cryptocurrency hackers are still a threat. The upside could be rewarding, but you should also be prepared for significant downturns, including a complete loss. Your all-in guide to help you make the best decision. Many or all of the products featured here are from our partners who compensate us. While some exchanges allow purchasing fractional shares of blue-chip cryptocurrencies like ether and bitcoin, others might only support whole coin purchases. This is because Ethereum has opted not to set an upper limit on its total coin supply.. This could give Ethereum an advantage over Bitcoin, especially among environmentally conscious investors. Ether also works as a virtual currency and store of value. Out of the many cryptocurrencies that have made huge waves in the crypto world recently. But Ethereum(ETH -0.44%)has had an incredible year. If youre in the game to try and make some money, then youre looking for the one that will make you money. Learn More. As a result, risky investments should make up just one part of your. Copyright 2023 Market Realist. Is Ethereum a Good Investment? Benzinga Crypto In other words, it has applications outside the cryptocurrency world. entities, such as banks, credit card issuers or travel companies. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. If in the long term the price of Shiba Inu is hiked to $1 you can become a millionaire. These gas fees, which compensate participants for validating transactions, can be outrageous, especially for smaller transactions. All financial products, shopping products and services are presented without warranty. In October 2021, ProShares Bitcoin Strategy ETF (BITO) launched, becoming the first SEC-approved crypto-based ETF. That announcement was one of the reasons behind the most recent crypto crash as investors questioned whether cryptocurrency could really thrive over the long term. Before that he was a legislative editor for the Colorado General Assembly. They are not intended to provide investment advice. Is Ethereum a good investment? There will be investors taking profit from the recent bitcoin boom to put in altcoins like ether, which should allow the Ethereum cryptocurrency to keep rising. What are the differences between Bitcoin and Ethereum. Bitcoin was initially meant to be a cryptocurrency -- emphasis on currency. Ethereum is different and is intended to be a platform for smart contracts. For now, heres a list of the essentials you need to know before investing in Ethereum: Transacting with Ethereum is very similar to Bitcoin -- but there are still a few differences. All Rights Reserved. Cost basis and return based on previous market day close. In fact, researchers from the University of Cambridge estimate that the Bitcoin mining process uses more electricity than the entire country of Sweden. Dont mistake Ethereums name recognition for stability or growth guarantees. CryptoManiaks is an authoritative crypto education platform dedicated to newcomers and cryptocurrency beginners. There are plans to indirectly lower prices through higher transaction throughput, but that will require implementing unproven technology that isnt yet available. Cryptocurrency is not a legal tender and is subject to market risks. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. One of the crypto worlds long-awaited events since 'The Merge' last year, the Shanghai Update promises to enhance Ethereum's liquidity by unlocking the staked ETH in the Beacon Chain. By: Edul Patel | Updated at : 28 Feb 2023 04:17 PM (IST), Ethereum has gained about 84 percent from its lowest cycle in the past seven months. Consider these diversified no-load fund picks for your retirement or taxable investment accounts. That mining process requires a significant amount of energy, and crypto critics have raised concerns over its impact on the environment. Theres a group of investors that follow trends. Funds are volatile, and transactions are irreversible. So let's peak at a few reasons you should consider not to buy Ethereum. A self-directed IRA can make sense in some situations, but investors must also understand the drawbacks. Ethereum (CCC:ETH-USD)will likely be a better long-term cryptocurrency investment than Bitcoin (CCC:BTC-USD). That is a gain of 87%. Ethereum, The 24-hour Surge By contrast, Bitcoin is up by $48,044 from $7,807, or 600%. More than 10,000 vendors offer rewards via Lolli, including companies like Nike Inc. (NKE), Walmart Inc. (WMT), Best Buy Co. Inc. (BBY), McDonald's Inc. (MCD) and Dunkin' Donuts. and have not been previously reviewed, approved or endorsed by any other She has edited articles on a variety of topics, including business software, Medicare and home improvement. Ethereum Market Cap Today's Change (-2.95%) -$48.83 Current Price $1,604.46 Price as of February 25, 2023, 2:55 a.m. Take, as an example, assets: homes, artwork, luxury cars, etc. Copyright Cryptocurrency is a risky investment in general because it's highly speculative at this point. The altcoin hit its all-time high in October 2021 at the $4,899 level. In recent times, Ethereum, the second-largest cryptocurrency by market capitalization, has been making headlines due to a sudden surge in value. Ether surging to a new all-time high has caught many cryptocurrency investors' attention. Technically, the supply of ETH is unconstrained, and there are currently more than 122 million in circulation. If BTC surges in value, ETH also tends to follow suit. Limited supply. *Average returns of all recommendations since inception. For any cryptocurrency to survive, it needs to have some type of real-world utility. ETFs offer a liquid, low-cost way of investing in bonds. According to statistics from Coinmarketcap, Ethereum is the second most valuable cryptocurrency by market capitalization with more than 41.3 billion USD and is being traded for about 377 USD (statistics on September 17 . quotes delayed at least 15 minutes, all others at least 20 minutes. With a high market capitalization, Ethereum is one of the leading cryptocurrencies. CoinCodex gave a short-term ethereum crypto price prediction for 2023 that estimated ETH could fall to $1,594.18 by 27 February before continuing to drop to $1,399.99 by 25 March. For many, investing in Ethereum has proven to be a great . By keeping most of your money in safer investments, you can limit your risk in the event that Ethereum takes a turn for the worse. Is ether a good investment in 2021? If you dont mind me getting a little technical -- Bitcoin has a deflationary model. Ethereum is the most-actively used blockchain. But if youre keen on sticking to one or the other then lets examine which one is better for you. You can earn additional Ethereum by staking. The cost to use Ethereums network is based on supply and demand if the network is busy, youll pay more. If you think that Ethereum price predictions make it a good investment, you might want to know how to invest in it. Well,if youre simply looking to invest in cryptocurrency and you can only pick one, perhaps Bitcoin would hold up better. Neither the author nor editor held positions in the aforementioned investments at the time of publication. Both Bitcoin and Ethereum use blockchain distributed ledger technology. Ethereums 2014 white paper states that it moves far beyond just currency and will be a foundational layer for a very large number of both financial and non-financial protocols in the years to come. Among other things, this means developers can build applications and anyone can write a smart contract, which is code that is stored and executed on Ethereums network. HODLing cryptospeak for holding assets for an extended period of time can contribute to a surge in the price to a certain extent through increased confidence in the cryptocurrency. While there are currently plans in place to increase scalability and reduce gas fees, as of 2023 the costs can still be prohibitive. A Guide For Beginners, What Is a Blockchain? Thinking of Buying Solana? You should buy Ethereum if youre more interested in innovation and use cases rather than in scarcity and the economic model of Bitcoin. Ethereum's upcoming Shanghai update, scheduled for release in March this year, could be the primary driver behind the surge in the altcoin's value. The table on the right shows the result of this trajectory. Is Ethereum the Best Crypto Investment in 2023? - deVere Group Ethereum is the world's second largest cryptocurrency behind Bitcoin, its price recently surging to a record high of $3,400 at the beginning of May 2021, a quadrupling in its value since the. This might have attracted new buyers who saw the existing holders as a signal of the asset's value. Crypto could be a life-changing investment, but it's not right for everyone. Transaction fees can be a drag. Ethereums whitepaper, which outlined its technical details, was released in 2013, and the first Ether sale took place in 2014. Now the price is better reflecting the value and use of Ethereum. (The author is the CEO and co-founder of Mudrex, a global crypto investing company). ALSO READ: How Crypto Diversification Can Protect Your Portfolio Against Volatility. Ethereum Price Prediction | Is Ethereum a Good Investment? - Capital Ether is a type of cryptocurrency, similar to Bitcoin. First, it's important to distinguish the difference between Ethereum and Ether. So should you buy Ethereum or Bitcoin? The DeFi explosion continued, with more than $100 million in total value being locked up. Even Goldman Sachs recently released a report stating that due to an upcoming upgrade, Ethereum could overtake Bitcoin as an investment asset. Investors in Ethereum should also be aware of its potential downsides. After gaining more than 460 percent in 2020, Ethereums native cryptocurrency ether has continued to rise in 2021. This will give you a more balanced perspective. Our 3 Top Picks. As with most investments, it's possible Ethereum's higher risk brings with it potential for higher rewards. Ether futures trading is already available on other platforms and they have been progressing well. Ethereum, like every other cryptocurrency, has endured a drop of around 80% from the highs of Q4 2021 to the lows of the recent bear market - despite fundamentals tightening and adoption increasing all the time. Compared to other cryptocurrencies, using Ethereum can be slower and more expensive. The total market capitalization for all cryptocurrencies was about $1 trillion, and the second-most valuable digital currency was Ethereum, with a market value in the neighborhood of $199.2 billion. First, ether is more affordable than bitcoin, which makes it a top option for investors looking for cheaper bitcoin alternatives. But it may not be the best store of value, because Ethereum does not have a maximum supply. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Also, the network can only process about a dozen transactions per second, regardless of demand. Ethereum ( ETH -2.95%) has been. The biggest security threat to Ethereum happened back inMay 2016. If that's the case, prices could plummet when the bubble bursts. The math behind Bitcoin's epic rise from its inception is obviously even more remarkable. customers from your country. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Users can also create decentralized apps that facilitate gaming, gambling and even the trading of other digital currencies. OriginTrail is down 0.89% in the last 24 hours. Will Be Even Bigger Than Your Wildest Expectation, 7 Over-$100 Stocks That Are Worth Every Penny, Louis Navellier and the InvestorPlace Research Staff, 5 Penny Cryptos With the Most Potential for Growth. For one, you're almost guaranteed to experience significant volatility -- especially if you invest directly in Ether. Invest better with The Motley Fool. It was a top-five crypto within a year, measured by the total value of its circulating supply, and in early 2016 it was second only to Bitcoin, a position it still holds today. NFTs have been rising in popularity as a means of providing for the sale of digital assets. It has all these different applications being built on top of it. As a result, risky investments should make up just one part of your asset allocation. On the one hand, the US Federal Reserve increased interest rates aggressively to address inflation. Contrast that with Apple Inc. (ticker: AAPL), the archetype of a fantastic stock and one of the best-performing equities of all time. In September, Securities and Exchange Commission Chair Gary Gensler suggested that cryptocurrencies such as Ethereum could be considered a security, which would make them subject to SEC regulations. Transactions are also irreversible, and its possible to lose funds by making a typo when attempting to make a transfer. This influences which products we write about and where and how the product appears on a page. Cryptocurrencies are still a new kind of asset, and they have been highly volatile. Recently, ether hit a new all-time high close to $1,500. In October, Rostin Behnam, the chair of the Commodity Futures Trading Commission, said that Ethereum is a commodity and should fall under CFTC regulation. It will not require mining, as used in the Bitcoin proof-of-work system. On the other hand, there were issues such as the conflict between Russia and Ukraine and the uncertainty caused by the pandemic. While Ethereum-based transactions tend to be far faster than Bitcoin transactions, there's a steep cost that comes with that convenience, known as gas fees. Time will tell how the circulating supply of ETH progresses but, unlike Bitcoin, there is no official cap on supply. Aragon DAO founder Luis Cuende predicts a $2,500$7,500 long-term price for Ethereum cryptocurrency. Kurt Woock started writing for NerdWallet in 2021. in journalism from the University of Missouri-Columbia. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. ( Image Source : Bastian Riccardi/Pixabay ) In recent times, Ethereum, the second-largest cryptocurrency by market capitalization, has been making headlines due to a sudden surge in value. Between May 12 and May 24, Ethereum lost nearly 50% of its value. Here are 5 reasonswhy is Ethereum worth buying and why to take action and become an early adopter and investor. So, what are some more reasons to invest in Ethereum? Prior to joining NerdWallet, Kurt was a writer and educator for Colorado PERA, a retirement system for public employees. For the second time this year, Ethereum's price is soaring. Ethereum classic reached $76.94 on 15 August 2021, its highest level since the fall from May's highs while, on 6 September, it reached a periodic high of $77.07. Ethereum in 2020 is an excellent investment, even among the global crisis. And while a. can give you additional protection against crashes and hacks, its still possible to lose your wallet, and with it, your assets. What happened: On Thursday a total of 5,851.18 Ether (CRYPTO: ETH) worth $9,213,497, based on the current value of Ethereum at time of publication ($1,574.64), was burned from Ethereum transactions. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly.