Ethereum is an open-source and decentralized platform that underpins most of the cryptocurrency industry.

Today we answer the question is Ethereum a good investment? We will cover the performance of the cryptocurrency, offer some data surrounding highs and lows, and a review of a top broker from which to buy crypto assets.

Is Ethereum a Good Investment? Our Summary

Ethereum logoThe question ‘is Ethereum a smart investment?’ is not a simple one to answer and is something that anyone looking to buy Ethereum will ask. That is to say, there is information to study such as the token’s previous performance and its uses in the real world. Information like this should help you gauge whether it is worth stocking up on ETH tokens to add to your portfolio.

Ethereum not only allows for peer-to-peer transactions but also serves as a framework for developing smart contracts and distributed applications. In fact, Ethereum is an industry leader in smart contracts. As such it is the blockchain network of choice for the best NFTs, crypto-based games, and tons of decentralized finance apps.

Is Ethereum a smart investment though?

As well as falling transaction fees, another major selling point for Ethereum is its flexibility, which allows it to adapt to changing demands as they arise. That’s how a network can stay relevant and useful for decades, and Ethereum looks set to do just that with its latest upgrade – ETH 2.0.

Cryptoassets are a highly volatile unregulated investment product.

How Ethereum Has Performed Since Launch & in 2022

Prior to placing an order to invest in cryptocurrency, you need to have some idea of how it performs in the market.

Ethereum was launched in July 2015 at a price of $0.75 per token. Within three months, Ethereum fell to its all-time lowest value of $0.42. Tokens briefly hit over $1,360 in January 2018, before falling again and remaining below $1,000 until January 2021.

The cryptocurrency reached new highs of nearly $4,170 in May 2021 before plummeting by around 60% to almost $1,700 in July the same year. The all-time highest value of this crypto asset was in November 2021 when tokens reached over $4,890.

This illustrates an increase of almost 652,000% since Ethereum was first launched. As is the nature of cryptocurrencies, this high didn’t last. By the following month, Ethereum had fallen by around 8% to a little over $4,500.

If you had chosen to invest in Ethereum upon its release, you would still be looking at very strong gains of 411,000%. As such, if you had invested $1,000, this would translate to a portfolio of ETH tokens worth a whopping $4.1 million by early 2022.

Ethereum Price

As we’ve touched on, had you decided to invest in Ethereum between its launch in 2015 and the start of 2018, you would have paid anywhere between $0.75 and $1,360. Ethereum hasn’t traded below $1,000 since early 2021 and is still an extremely popular cryptocurrency with crypto investors of all kinds.

Interestingly, around the time of Ethereum’s all-time high of around $4,890 in November 2021, the cryptocurrency’s notoriously high transaction price fell by approximately 50%. More recently, Ethereum has experienced heightened volatility in 2022, this is the same for many markets.

At the start of 2022, Ethereum was nearly $3,770. The cryptocurrency’s value continued to fall, before hitting around $2,400 at the end of January, the lowest Ethereum had been seen since July 2021. Even before the conflict in Ukraine, Ethereum’s volatility was fueled by signs that the Federal Reserve may begin hiking rates.

Ethereum price chart

More crypto legislation, as well as the idea of developing government-issued digital money, has piqued the curiosity of government authorities. Bitcoin’s price has been on a similar downward trend due to such developments.

Between April 2020 and 2022, Ethereum traded at a low of just over $1,700 and a high of around $4,890. In the same time frame, Ethereum increased in value by almost 28%, whilst Bitcoin fell by a little over 34%.

Cryptoassets are a highly volatile unregulated investment product.

Ethereum Highs and Lows

We’ve covered Ethereum’s performance since its inception and have begun to uncover whether the crypto-asset makes a sound investment.

For a recap, see the highs and lows of Ethereum here:

  • Ethereum launch July 2015 – $0.75
  • October 2015 – Ethereum falls to all-time low of $0.42
  • January 2018 – ETH rises to a little over $1,360, over 181,000% increase since launch
  • May 2021 – Tokens increase further, to almost $4,170, a rise of 990,000% since its an all-time low
  • July 2021 – Plummets to $1,700, a decrease of around 60% in two months
  • November 2021 – Reaches an all-time high of $4,890, an increase of almost 158% in four months
  • January 2022 – Ethereum plummets to around $2,400, a fall of approximately 50% since its all-time high two months earlier

These spikes and crashes throughout its history should give you a better understanding of Ethereum’s volatility and whether it’s the right investment for you. Of course, all cryptocurrencies are volatile and speculative,

Ethereum Price Prediction

When researching ‘is Ethereum a good investment?’ Bear in mind that any price predictions you come across should be taken as speculation, especially long-term. This is usually based on technical analysis, studying variables of past, and current trends.

With that said, according to market analysts Ethereum could increase to near all-time high levels of over $4,500 by the end of 2022. Some predictions say by the end of 2025, the average expected price of Ethereum is over $9,560. Depending on which analysis you study, the maximum forecasted value of Ethereum in 2025 is around $12,780, while the lowest expected value is $6,400.

Ethereum Utility – Is It Investable?

Ethereum is one of the original cryptocurrencies and therefore one of the first people to think about adding to their portfolio. This first-mover advantage is likely to be so strong that it will remain the default choice as the smart contract industry matures.

Invest in Ethereum

The utility of this cryptocurrency is much higher than that of Bitcoin making it easier to spend ETH. Ethereum’s technology is used in everything from NFTs, and business blockchain solutions to DeFi apps. Ethereum’s native token, ETH is one of the most valuable cryptocurrencies in the space.

See some of Ethereums uses below:

  • Developers may use Ethereum to raise funding for their own projects by creating a contract and soliciting pledges from the general public
  • Some of the best NFT games are built on the Ethereum blockchain, as such many NFT marketplaces accept ETH tokens
  • Ethereum currently uses a very energy-intensive proof of work (PoW) mechanism but is moving over to Proof of Stake (PoS) which uses less energy
  • Phase 2.0 has been on the Ethereum roadmap since 2020
  • ETH 2.0, also referred to as Serenity, or Eth2, intends to improve the network’s speed, scalability, and efficiency so that it can handle more transactions and alleviate bottlenecks

After the release of Ethereum 2.0, the existing chain will become the ‘Beacon Chain’, which will operate as a settlement layer for smart contract interactions on other networks. Eth2 is expected to be released in 2023. This should provide a new consensus method for Ethereum, as well as protect the network from cyber attacks

Where to Buy Ethereum

Before you go ahead with your Ethereum investment, you will need to find and sign up with a reputable trading platform with cheap trading fees. You should also think about how to store your Ethereum tokens in safety.

eToro – Top Platform to Invest in Ethereum in 2022

etoro revieweToro provides a service for 25 million traders with varying levels of experience and is regulated by the SEC, as well as other bodies. After creating an account, you can make a deposit using a plethora of payment methods, we found this to include convenient e-wallets such as Skrill, Neteller, and PayPal.

Other accepted deposit types include debit and credit cards, ACH, and bank wire transfers. The minimum deposit is just $10 and if you are funding your account with US dollars there is no fee.

Even newbies can invest in Ethereum with ease as the eToro platform is really easy to use and placing an order takes seconds.  There is a simple fixed commission fee to invest in Ethereum, this is just 1%. As such, if you allocate $100 when placing an order, the broker only takes $1.

etoro homepage

An advantage of buying cryptocurrencies at eToro is that you can keep the tokens within your portfolio for easy access. There is also a free cell phone app so you can invest in Ethereum on the go. More experienced investors will probably prefer to keep purchasing crypto assets in the eToro Money wallet.

Cryptoassets are a highly volatile unregulated investment product. 

Should I Buy Ethereum?

There are a number of methods to benefit from the popularity of Ethereum. You may still be asking yourself ‘is Ethereum a good investment?’

See a list of the key benefits of Ethereum :

  • One of the original cryptocurrencies, and usually only second to Bitcoin in terms of market capitalization
  • Ethereum is faster than Bitcoin
  • Real-world applications such as DeFi, web-browsing, digital identity and supply chain management, finance/payments, security, health applications, and more
  • ETH 2.0 update hopes to solve scalability issues and make the cryptocurrency more green
  • Ethereum powers much of the NFT world

A direct Ethereum investment is the simplest way. It poses the most danger, but also the largest possible return, due to its extraordinary volatility. eToro will allow you to risk just $10 when you invest in Ethereum, this is because the broker supports fractional stakes.

Conclusion

Today, we have shed some light on cryptocurrencies and tried to answer the question ‘is Ethereum a good investment?’. There are many benefits of adding Ethereum to your portfolio, such as the upcoming update to increase scalability and make the cryptocurrency more eco-friendly, and the fact it has real-world applications so should be positioned to stand the test of time.

If you are still unsure about Ethereum, you could think outside the box and consider Lucky Block. This exciting new project is set to alter the way the world plays lotteries. Lucky Block is a lottery project based on the BSC blockchain. The team’s aim is to make lotteries fair, transparent, and inclusive. This platform is built on the Binance Chain and is the fastest-growing of its kind.

lucky-block-logo

Cryptoassets are a highly volatile unregulated investment product.

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