Ethereum is an open source blockchain system that provides a platform for building decentralized smart contracts. This means that users around the world can build and run software that is resistant to censorship, downtime, and fraud on the Ethereum network.
The Ethereum blockchain is also capable of hosting other cryptocurrencies, called tokens, through its ERC-20 smart contract. This led to the development of many other cryptocurrencies that were built on the Ethereum network. While Bitcoin is a good asset as a store of value, it is not able to support smart contracts like Ethereum can.
Ethereum outlook in 2021
In 2021, Ethereum continued to be a pioneer in all of decentralized finance (DeFi), while experiencing a dramatic increase in its use. With the recent popularity of non-fungible tokens (NFTs), Ethereum has been the platform of choice for building these smart contracts. While traders don’t expect to see the same returns as in recent years, there is still huge room for growth.
Ethereum market capitalization
Ethereum currently holds the second largest market cap in the cryptocurrency industry behind Bitcoin, with a market cap of $ 345 billion. Ethereum has huge room for growth, as we are still in the early stages of DeFi development. Ethereum smart contracts can be used for everything from gaming, advertising, identity management, supply chain management – and everything in between. If users continue to rely on Ethereum for years to come, we can expect significant market capitalization growth.
Is it too late to buy Ethereum in 2021?
With the current innovations in the DeFi space as well as the amount of decentralized applications (dApps) being built on the Ethereum network, Etherum is still seen as a good investment. Users will continue to trust the Ethereum network as long as smart contracts continue to be developed. That being said, Ethereum is the most famous and trusted open source blockchain currently available. So, to answer the question, no –– it’s not too late to buy Ethereum.
Why it may be too late to buy Ethereum
Ethereum encountered issues scaling transactions. With the growing number of transactions, Ethereum fees have increased dramatically. Ethereum has addressed this issue and plans to move to a more contemporary protocol called Proof of Stake (PoS), which will allow for increased transactions and scaling. Although if developers start to move away from Ethereum in the meantime to start relying on other open source blockchains like Cardano (CRYPTO: ADA) or Solana (CRYPTO: SOL), then Ethereum could see a decrease in its use.
Why it’s not too late to buy Ethereum
Ethereum is known as the most trusted open source blockchain of modern times. Ethereum paved the way for developers to build their decentralized applications on an open source, globally accessible and censorship-resistant network. The number of dApps built on the Ethereum network is increasing as the developers want to build on the most reputable platform. If developers continue to build using Ethereum, there will be a significant increase in market capitalization, leading to a solid investment for buyers.
How to buy Ethereum
- Open a crypto exchange account.
The first step in buying your Ethereum would be to open an account with an exchange of your choice. Before you start trading, you will need to verify your identity. This involves mentioning your legal first and last name. Next, select the government ID you want to use (ID, passport), then take a photo and send it. Finally, users must send a photo of themselves to match the ID previously sent.
- Fund your account.
Once you have created your account and verified your identity, you can now start buying Ethereum. To actually buy Ethereum, you will need to associate a funding method to transfer money to your account. The most common method is a debit or credit card as well as a direct bank transfer.
Once your account is opened and you have associated a funding method, you can now purchase Ethereum. Don’t worry if you don’t have enough funds to buy 1 Ether, exchanges allow you to buy coins in fractions, so you can buy whatever works best for you. Always be sure to do your own research before investing in cryptocurrency – these are extremely volatile assets.
Best cryptocurrency exchanges for Ethereum
You can buy Ethereum currently on Coinbase (NASDAQ: COIN) as well as Crypto.com and eToro. A centralized exchange is a great way to start buying and trading cryptocurrencies – on your computer or mobile device. Always do your own research before buying cryptocurrency.
Cryptocurrency market price
The total market capitalization of all cryptocurrencies is currently just under $ 2,000 billion. Long-term positive sentiment in the market continues as the DeFi industry continues to grow, although we have encountered short-term selling as prices struggled to stay above support. The current structure of the market will largely depend on the ability of price action to maintain current support levels.
Is Ethereum a good investment in 2021?
If you believe in the development of decentralized networks and want to invest in a less volatile long-term asset within the industry, Ethereum is a great investment for you. If you are looking to rack up quick wins with high returns, then Ethereum might not be the best option for you.
Benzinga has developed a specific methodology for classifying cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our Cryptocurrency Methodology page.
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