Welcome to my article that will answer the question; “Should you still invest in Ethereum in 2022?“.
That’s the question that many people are asking themselves.
There is a lot of hype around cryptocurrencies, and it seems like just about everyone has an opinion on whether or not you should invest.
In this article, we will explore what Ethereum is, why it is so popular, as well as its risks and potential returns.
We’ll also give unbiased recommendations for both beginners and experts alike!
With that said, let’s jump right into it.
Should You Still Invest In Ethereum In 2022?
The answer is yes. Ethereum has had a rocky past, but it’s still one of the most popular cryptocurrencies out there, and its future looks bright, to say the least! In this article, we’ll explore everything you need to know about investing in Ethereum as well as how much money you could make if your investment tanks—or soars into outer space.
A Brief History Of Ethereum
Ethereum is a cryptocurrency that was created by Vitalik Buterin in 2013.
The price of Ethereum has been quite volatile in the past, but as we enter 2022, it’s still pretty hot on the cryptocurrency market.
The First Phase: “Ether”
In 2013 at age 19 (or 17 years old), Vitalik Buterin had an idea for creating a new type of decentralized platform based on bitcoin transactions called ether which would run smart contracts using an entirely different programming language than any other system out there—Ethereum’s native scripting language Solidity. This was large because he wanted to create a system that would be able to automate any type of task.
The Second Phase: “Ethereum”
In 2014, Vitalik Buterin and Gavin Wood released the Ethereum white paper which described their plans for this new platform along with crowdfunding $18 million in bitcoin from investors around the world—ensuring that it was funded enough to grow into a successful cryptocurrency.
The first major release came in July 2015 with $18 million worth of coins sold by founders pre-launch – angel investors were given 12x more coins than invited buyers at a price that never again reached during or after launch for two years (this would be 0.13% total ETH).
This led them on an adventure as they launched The DAO (Decentralized Autonomous Organization) in 2016, raising over $150Mn worth of ether at today’s rate before being hacked by thieves who stole more than 50% of their funds overnight while still remaining one of the most popular cryptocurrencies out there today.
This was followed very shortly thereafter by an increase in the price of ETH to a few pennies from $0.40 in three months, and a high market cap up until January 2018.
During this time Ethereum was considered by many as a “better bitcoin,” with some suggesting that it might eventually surpass Bitcoin one day.
But while its initial release went smoothly, since then there’s been an ongoing struggle for developers to keep up with demand due to increasing interest and lack of scalability on blockchain networks—higher transaction fees are also cutting into potential profits if you’re trading cryptocurrency like Ether or BTC.
Another great article: Is Dogecoin Still Worth Investing In 2022 – Value or Hype?
Some pros of investing in Ethereum Now Include:
- Ethereum is a relatively safe investment because you can buy or sell at any time without losing your initial stake, which is an important feature for novice investors who don’t have the knowledge yet on how crypto works.
- The Ethereum network has been around for a while and is stable.
- It’s the second most popular cryptocurrency by market cap with over $80 billion USD in circulation as of April 2018.
- There are fewer risks associated with investing in an established coin, rather than new projects that may or may not succeed like Bitcoin Cash (BCH) and Litecoin (LTC) although, LTC also has a promising future in my opinion.
Some cons Of investing in Ethereum now include:
- Ethereum transactions can be expensive due to high gas prices ($0.06 per transaction), meaning you lose more money on smaller trades since it will cost much more if your trade volume is low enough to have this problem—especially considering its volatility, which means prices will continue to change.
- It’s harder to buy Ethereum with fiat currency (e.g. USD, EUR) than it is Bitcoin or Litecoin because of the lack of an appropriate exchange that supports a wide variety of denominations for these types of transactions—making investing in Ethereum more complicated and expensive for those who can’t invest directly through ETH mining pools like Genesis Mining.
- Ethereum has been largely affected by Chinese authorities’ cryptocurrency policies as well since they’ve banned Initial Coin Offerings (ICOs). Some investors are now speculating that this will affect Ethereum negatively long term as local miners may not be able to keep up with demand from ICOs if there aren’t enough new coins being released which would make prices go down which is merely a prediction of course.
Where Can I Buy Ethereum In 2022?
It’s not a simple answer.
There are three main methods to buy ETH in 2022:
- Mining
- Trading on an exchange or
- Buying Ethereum with Bitcoin through an online marketplace like Coinbase using your bank account (and then once you have the BTC from that transaction – trade them for ETH at one of many cryptocurrency exchanges).
If you’re interested in investing large sums and want to know how to buy Ether without paying fees – it’s always best to purchase directly from miners, so we’ll cover that first.
The most popular option is Ether mining pools which give investors access to bulk amounts of coins but don’t allow small transactions due to their minimum requirement being set much higher than other available options.
The upside is they often offer more stability because there are more investors in the pool, and it’s less likely that one individual will have enough computing power to dominate – which can lead to reduced fees.
The other option that most people use to buy Ethereum is through a cryptocurrency exchange.
The process is relatively simple: you deposit your fiat currency into the exchange, send it to another account (e.g., Coinbase), and then trade that for Ethereum – or essentially, buy Ether with a bank transfer.
The downside is that these exchanges charge trading fees which can be significant depending on the size of your investment, as well as withdrawal fees when you decide to sell off all or part of your holdings in order to cash out some of those hard-earned gains.
Another great article: Revix Review – Is This Crypto Investment App Worth It?
Benefits Of Investing In Ethereum 2022:
Ethereum has been experiencing explosive growth recently due to its innovative blockchain technology being used by many companies such as JPMorgan Chase and Microsoft Corporation.
It’s still going strong even after an 80% drop from $1400+ USD at the beginning of 2018.
Ethereum’s blockchain has many benefits such as decentralized apps, smart contracts, and solidity development language – all of which are in demand by companies looking to utilize these technologies for future projects.
In addition, Ethereum is backed by a strong team with leadership from Vitalik Buterin (Ethereum founder) who possesses both technical skills and business acumen necessary to lead this project on its trajectory toward being one of the most important computing platforms available today or tomorrow.
Finally, due to its intrinsic value as an inflation-resistant store of wealth that will only grow over time with more people joining the party… it becomes clear why investing in Ethereum 2022 could be worth your while!
Is my money safe from hackers and scammers if I use an online wallet like Coinbase or Circle for storing my Ethereum coins?
In general, online wallets are considered to be a lower security option than offline (paper) wallets.
As such, it is advisable for users to take their coins out of an online wallet and move them into a more secure form of storage if they hold large amounts of cryptocurrency.
However, many people store small or medium amounts on these sites without issue as long as the cybercriminals do not have access to both your device and email account at the same time in order to bypass two-factor authentication codes which might prevent hackers from accessing funds stored within your personal accounts.
If you’re looking for greater peace of mind when storing cryptocurrency assets with Coinbase or Circle, consider moving some portion offsite so that only part of your crypto is at risk should something happen.
This strategy can be appealing if you’re looking to store a greater amount of funds offline and have them available for withdrawal, but it comes with the drawback that they would not be accessible in real-time unless you go through the process of moving some or all to an online wallet first before transferring back out again.
The Future of Ethereum
Ethereum is going through some changes that many people believe are positive changes.
Ethereum 2.0 and proof of stake (PoS).
Ethereum’s switch to a proof of stake (PoS) algorithm, is scheduled for release in 2020 and will be activated sometime in 2022.
It may seem like an unnecessary step given that mining still functions as it should on the current Ethereum blockchain, but PoS has its benefits over crypto miners who use hardware setups or expensive rigs with high energy usage.
The first benefit of this changeover would have been efficiency-related:
Using less electricity renders PoS more environmentally friendly than bitcoin mining technology.
The second perk is security-related: because there’s no reliance upon powerful equipment from any one party to process transactions, it becomes difficult if not impossible for hackers and other malicious entities to control the activity on the network via overwhelming computing power.
At the same time, there’s also a downside to this transition:
Ethereum may become less decentralized as mining becomes more lucrative for fewer people and powerholders who can afford expensive rigs or liquid cooling systems.
PoS is still an experimental technology in its early stages of development that will require additional research before it comes into fruition — but if successful, then investors should expect a return on their investment down the road.
If you’re looking at investing in Ethereum over 2022, consider doing your homework about how PoS might play out in order to determine what’s best for your needs.
What Is Proof-Of-Stake – (PoS)?
Proof-of-Stake is a consensus mechanism algorithm that requires nodes to show ownership of a certain amount of the cryptocurrency in order to validate transactions.
Another great article: When and Why Did Cryptocurrency Start? Its History and More
In Conclusion
My final thought about if should you invest in Ethereum in 2022 is that it’s best to take some time and learn more about Ethereum before investing.
It can be a risky investment, but if you do your homework first there are many benefits that come with cryptocurrency.
At the same time though, there’s also a downside to this transition:
Ethereum may become less decentralized as mining becomes more lucrative for fewer people and powerholders who can afford expensive rigs or liquid cooling systems.
PoS is still an experimental technology in its early stages, and Ethereum might need to make other changes before this new system takes off.
But I also think there is a big possibility to profit just by holding Ethereum.
The price of Ethereum is still climbing, and it might not be too late to invest in the currency.
You should also consider investing in other digital currencies as well such as Bitcoin or Litecoin which are alternatives to Ethereum.
With that said, I hope you enjoyed my article about should still invest in Ethereum in 2022.
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