Is investing in Ethereum worth it?

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Cryptocurrencies are some of the most popular assets to own nowadays. Investors are increasingly drawn to cyber money as a way to diversify their portfolios. And while many have been attracted to the world of crypto solely based on its popularity, as there’s no denying that cryptocurrency has reached heights like no other asset before or since in such a short time, others have observed the true potential of digital currencies. Indeed, many investors have decided to start trading in crypto as a means to hedge against inflation or to build wealth over time.

However, 2022 has been a rather unsatisfactory year for traders, whether they’ve already included crypto in their portfolios or not. The markets have noted a decidedly bearish tendency, and many investors have recorded significant losses. Perhaps due to its entrance into the mainstream, crypto has become more vulnerable to these events, and a crypto winter has emerged alongside the existing bear market. And while the situation is bound to persist for more, with analysts expecting no drastic changes in the first months of 2023, traders have not been deterred.

This is particularly the case when considering popular currencies. One of them is Ethereum, the most popular altcoin on the market and one of the options traders are most likely to choose these days. But what exactly are the advantages of crypto trading? Is it a purely speculative venture fueled by nothing but pure hype and which will inevitably fizzle out sooner or later, or is there something more to it that’s worth your attention? Let’s examine some of the facts.

Continuous success 

Since its launch in 2015, Ethereum’s price has grown by over 44,000%, making it one of the only assets in the world to record such an astronomically high change. It has even managed to outpace its rival, Bitcoin, and with a market cap of nearly $200 billion, Ethereum is worth more than some major global corporations such as PayPal or Starbucks.

However, given recent events in the crypto market, you might think this is all a thing of the past. After all, just because Ethereum was successful in the past doesn’t mean it will continue to be successful in the present or future. And while the current situation of the crypto market doesn’t seem all that great, it’s worth remembering that this isn’t the first time that cryptocurrencies have gone through a rough patch. Indeed, over its relatively short history, Ethereum has recorded several decreases. However, it has emerged from each one stronger than before. So, before you think about crossing Ether off your list of possible assets or selling all the crypto you own, keep your eyes on the markets a little longer.

Real use cases 

Crypto has often been painted as an asset that has no real-world application. Few stereotypes have been as damaging to the reputation of cryptos as this one. The truth is that cyber money has been created with real-world uses in mind. Ideally, cryptocurrencies could be used to fund daily transactions. However, there’s still a long way to go before countries worldwide adopt crypto as legal tender, and so far, only El Salvador has taken this step to mixed results. There’s still quite a way to go before crypto can assume the role for which it has been created, but this future is likely closer than we imagine.

Blockchain technology has already been proposed as a safer alternative to today’s systems. Ideally, it could help make several processes more efficient and could find applications in areas such as supply chains and healthcare. However, there’s still quite a way to go before achieving this, and while the technology could potentially provide safer processes for those operating it, it is currently not reliable enough for business owners to be used on a wide scale.

However, until these ideas become a reality, there are still many other ways you can use your Ethereum. Several vendors accept payments in crypto nowadays. You can either pay directly if you’re making an online purchase or convert some of your cryptos into your local fiat currency and use it at your favorite stores. While some vendors allow crypto payments in brick-and-mortar shops, this is still not quite as common. And although Ethereum is one of the most popular cryptos out there, you should still check the Ethereum price USD before starting any transaction. This enables you to avoid some of the volatility typically associated with crypto, so you don’t waste your capital and are able to buy Ethereum at the best price.

NFTs 

In recent years, the non-fungible token market has gradually cooled off. This has been especially apparent over the last year. However, this isn’t the last you’ve seen of them, and owning them is still a matter of interest for traders. This is mainly because businesses and brands, ranging from coffee stores to fashion houses, have begun introducing NFTs into their programs for interested customers to look at. When popular companies join in the hype, customers are more likely to be more engaged in the market. In turn, this makes tokens more popular, and when they become more highly sought-after, people who haven’t tried them are likely to reconsider their position.

In the past, the popularity surrounding non-fungible tokens has been mainly derived from the fact that they were sold at gargantuan prices, with many amounting to millions of dollars. This resulted in significant scrutiny from the general public, and the tokens began to make the news frequently. While perhaps not the most feasible investment for many traders at the moment, there’s no denying that the tokens remain one of the most emblematic creations of the Ethereum blockchain.

The price of Ethereum has decreased in 2022. In 2020 and 2021, it rose by 59 and 61%, respectively, so traders have felt the plunge deeply. And while the event has convinced sum that crypto is an overall unstable asset to own, others are more willing to wait it out. After all, it isn’t the first time prices have plummeted, only to return to much higher levels later on.


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