So you’ve decided to invest in cryptocurrency. Which coin should you buy? There are hundreds to choose from, with some being very popular while others are completely unknown. Should you buy Bitcoin, Ethereum, or another altcoin? This article will answer this question and more. We will cover important points about each coin including when to buy it, how to store it, and much more!
What is Ethereum
Ethereum is the second largest cryptocurrency (after bitcoin) by market cap. It was released in 2015 and was originally designed for the smart contract industry. However, due to the large amounts of speculation that goes on with Ethereum, almost any type of investment is fair game. For this reason, if you’re looking to purchase any cryptocurrency for investment purposes, Ethereum is without a doubt the clear choice. Buying the crypto will give you access to a worldwide market where you can buy anything, from groceries to artwork. Ethereum is also the preferred choice for ICOs which are raising funds through a digital token offering. ICOs are ideal for startups since the coins generated from the sales are usually used to fund further development or operations. Many large companies and reputable investment firms hold significant amounts of Ethereum due to its widespread acceptance and versatility in today’s ever expanding world of cryptocurrencies.
Key Points to Consider Before Purchasing Ethereum
Firstly, it is important to note that there are several versions of Ethereum. The most common is Ethereum (ETH), which is the currency used and accepted globally. However, if you are looking to purchase ETH for an investment, you should also consider purchasing ETH Classic, which is the original Ethereum platform and still supported by the community. This is also important from a technological point of view as it means that the project is still evolving and changing with new upgrades, adding new features, and fixing existing bugs. In order to purchase ETH or any other cryptocurrency, you will need a cryptocurrency wallet. A cryptocurrency wallet is a digital instrument that stores the private keys of your cryptocurrency investments. Without a safe place to keep your private keys, you will be at risk of losing your coins in the event of a theft or hack. The best and most popular wallets for cryptocurrency make storing your keys a seamless and hassle-free experience. If you’re new to cryptocurrency, then the safest and simplest way to start is with a hardware wallet. The keys for these are usually stored offline in physical form and never leave the wallet device itself. While hardware wallets offer the most security, they are also the most unresponsive and tedious to use. For those seeking convenience, there are several mobile-friendly and web-based wallets which offer the same level of security as hardware wallets but with greatly reduced user interaction required. A few popular wallets are listed below along with their associated pros and cons.
When to Buy Ethereum
Ethereum has seen a lot of growth in recent years and has become one of the most popular cryptocurrencies. Since its launch in 2015, Ethereum has risen in value by more than 500% and currently trades for around $214. As a general rule of thumb, if you’re looking to invest in a cryptocurrency then it is best to purchase at the beginning of a new trend or wave. This is when the ‘smart money‘ is flocking in and the price is at its highest. If you want to get in on the ground floor then the best time to buy is when the price is at its lowest. This could mean that the coin is just starting its journey up or that the trend has already started and the price has started decreasing. One interesting thing to note is that even though Ethereum is one of the oldest cryptocurrencies, it is among the most unpredictable and volatile. This is due to the fact that the price can change significantly and rapidly based on global economic news, celebrity scandals, and much more. It is incredibly volatile and any serious investor should be prepared to see their investment turned into cash within hours or days.
How to Store Ethereum
One of the things that make cryptocurrencies so appealing is the ability to store them in digital form and not have to worry about the security of their physical wallets. Although, it is better to store your coins on a hardware wallet as these are connected to a wallet server which makes them much more secure. If you’re new to cryptocurrency then the best thing you can do is research where you can and cannot store your coins. Installing a hardware wallet onto a new device or restoring your wallet onto a new device is often times difficult and more complicated than simply moving your coins from one place to another. If you would like to keep your cryptocurrency on a mobile or web-based wallet, then make sure you secure your wallet with a strong password and two-factor authentication. If you forget your password or lose access to your account, you will not be able to retrieve your coins. In order to minimize the risk of theft from cryptocurrency, never store your coins on an unencrypted device and keep a backup of all your private keys in a safe place. When storing large amounts of cryptocurrency, it is also wise to buy some of those hardware wallets mentioned above which make taking out and storing large amounts easy and seamless.
Where to Buy Ethereum
Since its inception, Ethereum has been available for purchase on several major cryptocurrency exchanges including Kucoin, Binance, and more. If you’re looking to purchase Ethereum then there are a few popular choices where you can do so easily. If you’re new to cryptocurrency, then one of the best things you can do is jump into one of these exchanges and begin making buys. For those seeking further stability, it is also wise to look into purchasing on a platform which is not especially volatile. Several large platforms like Binance have a strict policy against listing highly volatile cryptocurrencies. While this may mean that you won’t be able to find the coin you’re seeking, it also means that the platform will not suffer the same fate as other platforms whose stock suffers significant daily fluctuations. If you’d like to keep your coins for longer than just buying and selling them on a whim, then look into the multigrain platform where you can store your ERC20 tokens. This is a decentralized network which allows for a safer and more stable place to keep your funds. While it might not be the most popular choice among those seeking high volatility, it is still one of the most popular choices among those seeking long-term stability. One of the most well-known and popular multigrain platforms is called OmiseGo. Buying into this project gives you access to a whole host of financial services which provide for much safer and more comfortable crypto-to-fiat exchanges. Using this service will also allow you to buy and sell cryptocurrencies without having to worry about the price going up or down significantly.