Ethereum is one of the most popular and stable currencies in the crypto market. Due to its unique features and concept, it is gaining popularity day by day. If you are an investor in the cryptomarket, you might have invested your funds in Ethereum or has ever come across this cryptocurrency. Ethereum was invented by a Russian Programmer Vitalik Buterin in the year 2015. In the world of cryptocurrency, Ethereum is the second-largest cryptocurrency next to Bitcoin in market capitalization. It is a Decentralized, Open- Source Blockchain with smart contract functionality. Here in this article, we will be talking about the Best reasons why you should invest in Ethereum. And the risks of investing in Ethereum.
Best reasons to invest in Ethereum:-
1. It is the worlds second-largest Cryptocurrency
The ranking of cryptocurrency matters on its success. If you are an expert investor in the crypto market or a newbie it is quite impossible that you might have not come across the word Ethereum. Almost on all the crypto platforms, you will get to see this currency ranking in the second position next to Bitcoin, due to this it gets attention easily from the investors. Ethereum is also in the second position in terms of market cap next to bitcoin, which also helps it to freeze on the topmost position.
2.Ethereum has high price potential
Yes, it’s true. Ethereum has a high price potential. Ethereum is currently trading at $ 2820.11 (At the time of publishing this post). Its price is going high mostly because more and more people are investing in it and mostly these investors are staking the coins which means that, the investors are not selling the coins. Due to the excessive demand for Ethereum in the market, its price is reaching new heights day by day. So, if you are an investor who wants to get a good return from your invested assets in long run, Ethereum can be a good choice for you. Provided you be aware of the crypto market which is volatile.
3. ERC 20 standards
Ethereum is based on the system of tokens. ERC 20 is probably one of the game-changing inventions of the crypto market of all time. These tokens can be brought, sold, or traded. These tokens represent a wide variety of digital assets in cryptocurrencies such as vouchers, IOUs, or even real-world, tangible objects. ERC 20 tokens are similar to many other cryptocurrencies such as Bitcoin, Litecoin, and many other cryptocurrencies. ERC 20 tokens are only issued on Ethereum Network. Today almost a huge bunch of projects in the crypto market are from the ERC 20 tokens.
4. Ethereum Virtual Machine (EVM)
Ethereum virtual machine is also one of the biggest reasons why you should invest in Ethereum. EVM is a complex programmable system that allows the developers to build great things from Ethereum. It is one of the strongest points of Ethereum. Ever since the project started, many Complex smart contracts have been developed by using Ethereum Virtual Machine(EVM). There are many other complex projects which are still under construction built by the Virtual Machine.
It’s highly Valuable. These projects require Ethereum to use the Ethereum Virtual Machine, Which means that it will have long-term demand in the future also.
Also Read: What is Alice Coin and how does it work
5. Institutional adoption of Ethereum
The Enterprise Ethereum Alliance (EEA) has been made with some of the greatest leading institutions of the world. This alliance includes 400 institutes such as Accenture, Intel, JP Morgan, Microsoft, Wipro, etc. All these companies have one thing in common, they all are blockchain enthusiasts.
6. Ethereum is Bullish
Ethereum has shown its bullish nature from the time it has been founded. It is seen that the value of ethereum is increasing day by. If we just take a year’s record and see the price difference, most of us will be amazed to hear that Ethereum has shown more than 600% within one year. Which gives most of the investors a reason to invest in Ethereum. Since we all know that the Crypto market is volatile and an increase or decrease of 10% is natural. But though it comes under the category of stable coins in the crypto market. If we just compare the prices on 25 September 2020 it was at 354 USD now if we check for the ethereum prices we will be amazed to see that it is 2813 USD. So if you are a long-term investor, investing in this cryptocurrency can be a great deal for you. But before investing please gather essential pieces of information and be aware of the Pros and Cons of the Crypto Market.
7.Ethereum 2.0 proves to be a game-changer
Ethereum 2.0 is an update to the ethereum blockchain. It is also known by different manes such as ethereum 2.0, ETH 2, Serenity. It is called a game-changing invention due to the speed, reliability, efficiency, and scalability of the ethereum network. It can process many transactions and can overcome many challenges which ethereum was facing before.
Ethereum 2.0 is being launched in several different phases, with its first update on December 1, 2020, the Beacon Chain. The key feature of this upgrade was the network’s shift to a PoS consensus mechanism.
The second phase is ‘The Merge Update’. The merge update was said to be launched in the quarterly of 2021. “The Merge” upgrade aims to swap up the current (POW Mechanism) with a more efficient, eco-friendly, and secure proof of stake (POS) mechanism.
The final phase is said to be The Shard Chains. There is no clear assumption that when it is going to be launched but, it will prove to be a milestone in the Crypto Market. This update will mainly focus on scaling the ethereum network. The operations will be shifted on 64 different chains instead of 1 blockchain.
8. The best quality developer team
The success of a project depends entirely on its team members and leader. Ethereum has one of the best teams of knowledgeable programmers in the crypto market next to Bitcoin. This project has been started by ‘Vitalik Buterian’ one of the most famous personalities in the Blockchain industry. With such a developer team at Ethereum, one can expect its growth in the Blockchain Industry. It has long-term growth, this is so because of the new ideas and updates which are being brought from time to time. This is also a major factor that why so many investors are showing interest in Ethereum.
9. Time Tasted
Ethereum is time tasted. Ethereum has been in the blockchain market for a long time and it has launched quite a good no of game-changing projects. Ethereum upgrades its technology from time to time based on the market demand and low energy consumption. Moreover, it also tastes its technologies so that there should be no chances of failure, it also upgrades its technology from time to time based on the market scenario. Day by day ethereum is giving quite good results and showing a massive increase in its popularity.
10. First- mover advantage in the market
Ethereums has a First Mover advantage along with the other smart contract platforms. Besides the fact that it has the highest market cap, it has other unique advantages such as developer activity, traction, etc. Ethereum 2.0 will be the game changer in this regard.
11. Ethereum is easy to understand
People who choose to invest in blockchain prefer to move with a platform that has easy to understand Programming Language. Ethereum uses Solidity as its programming language for its projects. Anyone who has good knowledge and is able to understand simple Programming languages such as C++, Java, Python can easily understand Solidity and can easily write codes. This gives Ethereum back support in the long run.
12.Ethereum is Listed on multiple exchanges
Listing of a cryptocurrency on different platforms matters a lot in its growth, the more the exchanges, the more the liquidity and even chances of prie increase. In the case of Ethereum, it has been listed on almost all of the platforms such as Binance, Wazirx, Coinbase, Local Ethereum, etc. Almost all the exchanges are dominated by Ethereums ERC 20 tokens. This gives the investors a good reason to invest in ethereum.