One of the main reasons for the increasing popularity of cryptocurrencies is their profit potential. Experts mention the price of popular cryptocurrencies can skyrocket and can help you earn thousands of dollars. Bitcoin, the number one cryptocurrency, has a value of $38,959.06 per Bitcoin.
Due to the staggeringly high price, general investors can’t buy bitcoins. So what are your other options? The answer is Ethereum. This blog post will help you know what is Ethereum and how to invest in it.
Knowing Ethereum
Ethereum is one of the second most popular cryptocurrencies, and the value of one ETH is around $2,591.39. Crypto experts mention Ethereum is more than just a crypto coin and has several applications. It is a decentralised blockchain platform that establishes a peer-to-peer network to verify and execute smart contracts securely.
Ethereum Price History
The price of one ETH in Aug 2015 was around $1.25. By Jan 2018, the cost of one ETH soared to $1066.72. The price rise of ETH has been phenomenal, and the price reached $4,426 in Nov 2021. You can buy Ethereum at most crypto exchanges around the world with your hard-earned money.
Ethereum Price Predictions
Many websites offer Ethereum price predictions for the coming years. Some experts mention the price of ETH could reach around $3200 by 2025. However, some crypto experts believe with the introduction of Ethereum 2.0 expected soon, the cost of one ETH could reach $5800 by the end of 2025. Most crypto experts believe that the ETH will experience a phenomenal price rise, and you can expect a price increase up to 81%.
Now that you understand what is Ethereum, let’s look at some common FAQs related to cryptocurrencies.
How is cryptocurrency stored?
Cryptocurrency is digital money, and it does not have any physical form. Digital wallets provided by crypto exchanges are where they can be stored. When you create an account at the crypto exchange, you get a digital wallet to store any cryptocurrencies you buy.
What is the purpose of cryptocurrency?
The primary purpose of paper money and cryptocurrency is to purchase goods and services. Cryptocurrencies can be a good alternative for traditional currencies which has several limitations. Every cryptocurrency has defined units that make online transactions more effortless, and their transactions cost low.
Is cryptocurrency safe and legal?
Cryptocurrencies are safe, but their theft is possible like your traditional money in any bank account. Hence, using secure crypto wallets would help store your ETH and other cryptocurrencies. Many countries have legalised the use of cryptocurrencies, but you should be aware of their restrictions and limitations.
Countries that allow you to invest in crypto-assets are the US, the EU, El Salvador, Australia, Canada, and many more.
How does supply and demand work in cryptocurrency?
The design of Cryptocurrencies like Bitcoin is such that it has a limited supply. Crypto experts mention that people can mine only 21 million bitcoins. As per January 2022 data, around 18.9 million bitcoins have been mined, and only 2.1 million more remain.
Experts mention that even Ethereum had limitations in the maximum ETH coins available for mining. But the update EIP-1559 introduced in Aug 2021 increased the block size to create new ETH coins.
It is essential to have adequate information on cryptocurrencies to create an account in the crypto exchange and start investing.
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