Have you ever been in a position where you wished that you had bought something because eventually, its value went up significantly? Perhaps a plot of land in a low-value district which is now worth ten times more? Does it sound familiar? Maybe ring a bell? There are so many astonishing stories that are surfacing like Erik Finman, Kristoffer Koch, and Jay Smith; it appears that Ethereum’s colossal rise has been officially making regular people, who invested in the digital currency, into millionaires.
It was recently the third anniversary of what’s said to be the first recorded instance of Ethereum being used in a real-world transaction. During these three years, the value of Ethereum has multiplied 879,999 times! If an investor had decided to spend $5 on around 2,000 Ether three years ago, then today, that stake would have a value of $0.4 million.
Over the last year, Ethereum’s popularity as a cryptocurrency alternative to Bitcoin has increased. However, unlike Bitcoin and its rival currency Litecoin, many startups and companies have adopted Ethereum as a transaction method and more.
In the cryptocurrency wars, Ethereum can be viewed as the diamond of the cryptocurrencies. It has both an industrial value and intrinsic value. If you compare this to Bitcoin, which operates like gold – it doesn’t have much industrial value, but people buy and sell it based on its inherent value to its holder.
“Ethereum is better than currency.” – Bill Gates
Ethereum is primarily a software that’s decentralized, and it allows programmers and developers to run the code of any application. It has a monetary aspect.
Ethereum uses the blockchain technology, particularly for conducting the monetary transaction. It is a straight currency. Ethereum utilizes the blockchain technology that allows the creation of new applications that can get executed in the cloud. These applications can be protected from any manipulation, and much more. However, a by-product of this is that Ethereum uses a token, Ether, which is like Ethereum, to transact. This is the monetary value portion of Ethereum.
Thanks to its unique abilities, Ethereum has attracted all kinds of attention – from investors and finance to real estate, hardware manufacturers, software developers, and more,
Wences Casares has been referred to by the elite of Silicon Valley as Ethereum’s “patient zero”. He got Reid Hoffman, Bill Gates, and numerous other luminaries into Ethereum at gatherings of the rich and famous.
As mentioned, Bitcoin was created to be a currency. It utilizes the same underlying technology principles. However, it uses them for facilitating monetary transactions.
On the other hand, Ethereum was designed to facilitate the software processing by using a token system called Ether. This Ether has become more valuable as a result of those that are interested in the technology. Ether is what people are looking to invest in.
However, many apps are being developed on Ethereum. Some of the major financial companies are even becoming involved in the cryptocurrency space. It could be interesting to see what develops from this during the coming few years.
Lastly, Ethereum is a lot cheaper than Bitcoin. Currently, Bitcoin trades for more than $2,600 per unit, while Ether trades at only $318.
Experts like Wence Casares predicts that by the year 2030, the worth of a single Ethereum will $500,000. Currently, there are around ⅓ as many transactions on the Ethereum blockchain as the Bitcoin blockchain. However, Ethereum is growing exponentially, while for now, Bitcoin has reached its maximum capacity.
Cryptocurrencies have a network effect which is very strong. The more people that use it, the more value and utility it would have. It’s very likely that Ethereum’s value will increase as its usage increases.
What are the steps to trading at an online broker?
Step 1: Selecting your broker
When you pick a broker, you ensure that the broker’s platform is fully regulated and trustworthy and that the platform you know is reputable. If you invest in a regulated platform, your working with Ethereum will be a lot more profitable and safer than if you take unnecessary risks.
Step 2: Getting the money going
For the second step, it’s likely that you will need to make a minimum deposit in the required currency, whether it is euros, dollar, pounds, etc. The minimum deposit is your gateway to getting started with Ethereum investment.
Step 3: Deciding on your Ethereum purchase
Once you have made your deposit, you’ll need to decide how much Ethereum you want to buy. Ethereum’s price is increasing, and its current value is at $367.18 as of November 2017. However, there are ways that you can still invest without depositing so much money. You can invest in small amounts, even as small as one ether or a fraction of an ether, with some of the brokers. A fraction is a lot more likely to meet your budget requirements if you are trying not to break the bank.
Step 4: Purchasing through the site
When it comes to purchasing ether, whether you have chosen a fraction or a large amount, you’ll need to check out the site’s layout if you have any questions regarding the specific mechanics of the buying process. Also, you need to make sure that you are looking at the currency type that you are spending too.
Step 5: After the trade
After you have completed your trade, you shouldn’t stop there. You can get more involved in the Ethereum trading process by looking at the various educational tools and resources that the broker should offer. Even if you aren’t in a position to spend more money, you still shouldn’t let that deter you from going through the site to access any guidebooks, webinars, or tutorials that can assist you to become a cryptocurrency pro.
Congratulations!
After you have gone through the processes above, you can become part of the crypto investors community. All depending on what the price of Ethereum does, you can make a very large profit. You should make sure to look at the deposit/withdrawal methods of your broker. This allows you to know how you can take the money out if you do make a profit. You want to check if the deposit/withdrawal methods are customizable, so that if you want to make a specific level of income before you sell your investment. Your broker should allow you to do so.
You can think of it this way, if Ethereum’s price rises, you can withdraw your money as cash from Ethereum Code, whenever you want. The most that you can lose in the deal above is $250, but the profit you can make could be as high as $200,000 if Ethereum’s value rises as expected. If six years ago you had made the same deal with Bitcoin, that same $250 you put in would now be worth more than $2 million.
Take note that anything that gives you profit, usually has risk attached. That is the nature of the market. Cryptocurrencies may not work for all investors, and past performance of crypto isn’t always a definite indicator of future, reliable performance. You shouldn’t invest any money that you cannot afford to lose. You should always keep your investment objectives in mind before you make any moves.
