Is Ethereum a Good Investment? Key signals for 2024

TLDR

Ethereum is a good investment in 2024 as it is the second-largest blockchain platform in the world. One of the reasons why Ethereum is a good investment is The Merge or Ethereum 2.0. Ethereum 2.0 is an upgrade of the Ethereum network to transition it from proof of work to proof of stake. The price of ETH is steadily rising after the complete transition.

Investing in the Ethereum network is also good because of the increasing use of blockchain technology. Individuals can use Ethereum for online payments and commodity trading. Ethereum has also introduced the world to smart contracts and dApps. Allowing you to make transactions without an intermediary. Ethereum is one of the best assets to invest in the crypto industry.

Introduction 

Ethereum is the world’s second-largest cryptocurrency network after Bitcoin by market capitalization. It has a large community and offers amazing features on the blockchain. Unlike regular altcoins, it has a lower probability of crashing. The cryptocurrency market is volatile, but Ethereum has proven to be one of the best options for long-term investment.

Recently, the Ethereum network switched from proof of work to proof of stake. After the Ethereum merge, the cryptocurrency is under the deflationary asset class. That means Ethereum’s price will likely increase due to its decreased supply. This is great news for crypto investors looking to try their stake in the Ethereum blockchain.

There are several reasons why crypto enthusiasts feel Ethereum’s price in the crypto market will rise. Ethereum has many real-world use cases, which makes it a valuable asset. The Ethereum network offers tokenization of artwork, person-to-person transactions, and patents. ETH has the potential to see tremendous growth in the future.

Should You Invest in Ethereum in 2024?

One reason why many crypto experts believe buying ETH in 2024 is a good idea is due to the Ethereum 2.0 launch that happened recently. The merge is the second iteration of Ethereum, focusing on energy conservation and staking instead of mining. There has been a steady increment in Ethereum price since the merge.

Ethereum’s potential regarding its uses is another major reason you should invest in Ethereum today. The digital network has many use cases, including NFTs and decentralized finance. These ETH use cases increase the cryptocurrency’s potential value, making it a good investment.

Also, the Ethereum network introduced the world to DApps and smart contracts. With smart contracts, Ethereum can revolutionize digital ownership. Ethereum offers tokenization of artworks. It also allows you to make transactions without an intermediary. All these speak of the potential height ETH can reach.

The Ethereum blockchain also fosters innovations that can change the world, such as sustainable energy sharing and NFTs. Ethereum is also decentralized, and unlike Bitcoin, it has no market cap. The circulating supply of ETH is around 120 million, and the Ethereum price prediction shows that the asset has a promising future. However, Ethereum price prediction experiences some volatility and is not completely risk-free.

Ethereum is a good investment for any investor today. In 2017, one Ether token was $25. However, in early 2022, the token’s value was $3400. Hence, the token saw over a hundred times increment in its value during five years. Despite its heavy transaction fees, Ethereum has proven to be a safe and secure asset to invest in over the years, and its value keeps rising.

What Are Analysts Predicting About Ethereum?

After a prolonged crypto winter in 2022, many analysts have an optimistic view about investing long-term into Ethereum. Most crypto analysts predict ETH will experience a significant increase in value based on Ethereum price movements and technical analysis.

Based on Ethereum price prediction, some crypto analysts feel Ethereum can be a profitable short-term investment. However, more analysts are optimistic about the asset as a long-term investment. On average, crypto analysts predict that Ethereum’s price as of 2025 will be over $9,000. Some even believe the coin will cross $12,000 in 2025.

Analysts like VanEck predict a bull run for Ethereum in 2023. The global investment fund house technical analysis views Ethereum as a ‘triple-point asset.’ VanEck estimates that Ethereum’s market cap could surpass $2 trillion under appropriate conditions.

Ben Ritchie and several renowned crypto blogs also have an optimistic opinion about Ethereum’s price. Gov Capital’s Ethereum price prediction estimates that the asset could reach $7,200 in two years. Likewise, Anton Kharitonov from Traders Union also predicts that Ethereum’s price could reach as high as $6,200 by 2025 and $30,000 by 2030.

Furthermore, Bill Barhydt, CEO of Abra, stated in a CNBC interview that ETH price, based on market trends and use cases, could reach $40,000. The crypto analyst went on to list the multiple use cases of Ethereum and tagged them as the driving factors for the increase. Examples of the use cases are smart contracts, DeFi, and NFTs.

Reasons to Invest in Ethereum

Here are some reasons why an Ethereum investment is a good idea.

Real-World Usage

Ethereum is known for its high utility, as it has many uses. Unlike most altcoins with no real use except for trading, Ethereum brings non-fungible tokens and decentralized finance. This makes it very valuable compared to most coins in the crypto market. Since it has many uses in the crypto world, the demand for Ether will keep growing.

The top NFT cryptocurrencies today, like Apecoin, are based on Ethereum. You can also use Ethereum as a means of payment in some stores instead of fiat currency. The various use cases of the Ethereum ecosystem make the digital asset one of the best to invest in.

Potential For Innovation

Ethereum, unlike other coins, has high innovation potential. The network started with decentralized applications before moving on to smart contracts, a major part of the Ethereum blockchain. The changes Ethereum brings to the crypto world open the window to new and creative ideas for decentralized apps.

Ethereum offers the potential to redefine the internet. This can turn the crypto asset into digital gold. The ETH network could restructure the internet and become the largest decentralized computer.

Changes In Tokenomics

The more Ethereum is adopted on the blockchain, the more Ether is burned. Ethereum keeps getting adopted worldwide as its various aspects, like DeFi and NFTs, are set to keep growing. In the future, when the supply of Ethereum outstrips its demand, ETH holders will most likely see a huge increment in ETH price.

Environmentally Friendly

Environmental problems have been a major concern for investors all over the world. Many investors are looking for environmentally friendly cryptocurrencies to invest in. Ethereum has transitioned from a proof of work algorithm to a proof of stake.

This is to reduce the carbon footprint of the digital asset. Hence, many investors, especially institutional investors, consider Ethereum a good investment. With this, the demand for environmentally friendly cryptocurrency will increase.

Available on Most Exchanges

Ethereum is one of the few cryptocurrencies you can find on almost every exchange platform. This is why Ethereum is a good investment, as digital assets are liquid assets that investors can enter or exit anytime. In a volatile crypto market, assets like these are advantageous since you can buy or sell Ethereum anytime. This also reduces the investment risks to some extent.

Drawbacks of Investing in ETH

Although Ethereum is one of the biggest digital assets with great potential, investing in it can also have drawbacks. There is always the chance for Ethereum price predictions to go wrong. Here are some of the drawbacks or risks associated with investing in Ethereum.

Hackers

Cryptocurrencies always face the risk of being hacked. Ethereum once suffered a hack in 2016, where the network lost about $70 million. This led to the release of Ethereum Classic. Even though the money was restored, the incident indicates that cryptocurrencies cannot be completely safe. Hence, it would help to be careful of hackers when investing in Ethereum or any other cryptocurrency.

Competition

The number of competitor DApp platforms keeps increasing daily, and there is a possibility of Ethereum losing its position as number one. With so many competitors popping up, Ethereum might experience a reduction in its market share. If this happens, the asset’s price in the crypto market can change.

It is important to consider these risks before investing your money in Ethereum. If your risk appetite can handle it, you can invest in Ethereum.

Ethereum Use Cases

Ethereum is the second largest cryptocurrency in the world, and it has multiple applications today. Despite its high gas fees, it still holds the crown regarding use cases and computing power. Ethereum is highly decentralized; hence, it is secure and dependable. Some of the use cases of Ethereum include:

Smart Contracts

Smart contracts are self-executing orders that are essential to Ethereum blockchain technology. A smart contract outlines the agreement between someone buying and selling Ethereum. It helps to make transactions anonymous on the blockchain, which gives you added security for your assets. This Ethereum innovation is the core of anonymous and transparent crypto exchange.

DeFi

DeFi is short for Decentralized Finance. It is a technology that allows you to transact with others without needing an intermediary like banks. This Ethereum use case allows individuals to take complete control of their assets. DeFi enables decentralized and quick money transfers from one party to the other. Examples of notable DeFi projects on the ETH blockchain include MakerDAO and Compound.

NFTs

Ethereum is the dominant cryptocurrency when it comes to non-fungible tokens. Some NFTs now value millions of dollars after the technology’s launch in 2020. Most NFT marketplaces are based on the ETH blockchain, and investors prefer minting NFTs with ETH. NFTs are rapidly rising in value and will reflect on ETH prices eventually.

DApps

The ETH blockchain is the best place for decentralized applications. Ethereum offers hundreds of dApp that cover different services such as games and investments. Although dApps are easy to use, they are quite inaccessible to the public. However, if more businesses adopt dApps in the future, ETH prices and market capitalization will increase.

Payment Option

It is perfectly normal today to see some stores that accept cryptocurrency as a means of payment. Ethereum rivals Bitcoin as a method of payment in the world. The reason why many people accept ETH as a payment option is due to its fast transaction speed and its transparency. After the launch of Ethereum 2.0, ETH adoption will speed up, and the coin’s value will rise.

Things You Must Know Before Investing in Ethereum

Now that you have enough reason to invest in Ethereum, there are some things you must know before investing money in Ethereum. They include:

Invest only through regulated crypto exchanges. Some exchange platforms need to be more reliable and secure. Hence, it is important to go for platforms where your money’s security is guaranteed.

Create a strong password for your account. This will help keep your investment safe from hackers and phishers.

After you buy ETH, it is better to remove it from the exchange platform and store it in your crypto wallet. This helps to keep your assets secure and transparent.

Where to Buy Ethereum?

The best place to buy Ethereum is from crypto exchange platforms. There are several crypto exchanges where you can buy Ethereum. Some reputable exchanges include:

1. eToro

eToro is a cryptocurrency exchange platform that lets you buy Ethereum, Bitcoin, Ripple, and other coins. This platform is a great place for individuals who want to invest in Ethereum instead of holding. This is because you may require up to 3 days to withdraw ETH from your eToro wallet to your private wallet.

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eToro is a popular online trading platform for crypto assets, stocks, and ETFs, featuring low fees and a user-friendly interface. With a free eToro wallet and social features like messaging boards, users can copy experienced traders and access numerous assets. Take a look at what makes this platform perfect for starting your trading journey.

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  Limited number of cryptocurrencies.

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  No crypto-to-crypto trading pairs.

2. Coinbase

Coinbase is one of the best exchanges to buy Ethereum. It is one of the oldest exchange platforms known to be secure and reliable. The platform supports hundreds of cryptocurrencies, including ETH, and is available in over two hundred countries. Coinbase accepts wire transfers, ACH, Apple/Google Pay, debit cards, and PayPal. Check out our Detailed comparison of Coinbase vs. Etoro.

3. Coinmama

Coinmama offers brokerage services to Bitcoin, Ethereum, and some other cryptocurrencies. This platform has great customer support and exchanges Ethereum at a premium. Coinmama accepts wire transfers, debit/credit cards, SWIFT, SEPA, and Apple/Google Pay to buy Ethereum.

ETH Dollar-Cost Averaging

ETH dollar-cost averaging is a simple investment strategy. It involves making regular scheduled Ethereum investments over a period. Investors do this to avoid investing a huge sum of money at a time. If you buy Ethereum in small amounts at intervals, the impact of crypto market volatility can be minimized.

ETH dollar-cost averaging is a good investment strategy for beginners in crypto investment. All you need to do is create a schedule of intervals to buy ETH in small quantities. For example, suppose you plan to invest $1000 into ETH. In that case, you can utilize ETH dollar-cost averaging by investing $50 at different intervals instead of at once.

With ETH DCA, you don’t need to monitor market price movements every time constantly. Dollar-cost averaging over an extended period can yield better returns than a large investment. Creating an ETH DCA for yourself is quite simple and doesn’t take time. Utilizing ETH DCA is a great way to invest in Ethereum in 2023. You can even use a DCA calculator.

Conclusion

Ethereum is a great investment for investors, and 2024 is a good time to buy Ethereum. Over the past few years, despite the volatility of the crypto market, Ethereum has generated over 10,000% returns for ETH holders. The digital asset is stable compared to other cryptocurrencies. It has multiple usages that keep it relevant in the long run.

Many crypto experts believe Ethereum will rise steadily in 2024. One of the reasons for this is the Ethereum 2.0 launch in 2022. The Ethereum merge signifies Ethereum’s conversion to proof of stake. Ethereum also opens the door to innovations such as dApps and NFT tokenization.