Is it reasonable to invest in Ethereum for the long term?

The crypto market is on the rise. From social media platforms to trading hubs, everyone is talking about crypto. Some also claim that this is the future of global financial models. A statement like this can only be authenticated by the test of time.

Among globally traded crypto units, one name is relatively consistent in reaching the top charts. Yes, we are talking about Ethereum. But you might be hearing this for the first time, Ethereum is not a cryptocurrency. It is more of a global computing network for dApps.

• Ethereum performance so far

Whenever the investing model for Ethereum comes up, a comparison is entirely predictable now. The comparison between Bitcoin and Ethereum. Both blockchain influenced units are regarded as the top digital assets to invest in.

From the day of its launch, Ethereum went through many ups and down to this very date. The asset is super volatile, which means that the price projection of the asset is not always fixed. But the performance projections promise some noticeable gains shortly.

• Expert opinion

In terms of long-term investment, the majority of the experts are quite in favor of Ethereum. Even with its volatile nature, the asset can finally gain a stable market position. In other words, it has far exceeded the traditional pump and dump model of crypto assets.

Because of this, the better approach to handling Ethereum will be investing in it for the long term. The market is projected to provide stable gains and some quite prominent bullish trends. Compared to Bitcoin, the Ethereum network focuses more on decentralized financial application models. Similar to investing in the future of crypto.

• Buying Ethereum 

Like any other prominent digital asset, the best way to buy Ethereum is through crypto or digital currency exchange. For example, if you are residing in UAE, you can Purchase ETH in UAE from exchanges like BitOasis with a very minor per transaction charge ratio.

You are free to go and test the market independently as well. But that is not advised by experts as there will be a lot of details you have to focus on yourself this way. You will eventually need a digital wallet to buy and then hold Ethereum crypto units as a long-term investment.

• Potential Risks

The significant risk involved in investing in crypto-based assets is market volatility. You can never successfully predict the possible rise and fall of the market. You might see a digital asset hitting an all-time high at one point. In the very next instance, everything can go back to zero.

In the case of Ethereum specifically, the transaction fees model is also a debatable topic. Accessing the Ethereum blockchain alone can cost you hundreds of Dollars. For small investors, paying such massive charges is not feasible at all. Plus, there are states around the globe working on introducing new regulations regarding crypto.

• Plans

According to an official blockchain source, Ethereum plans to introduce new digital streams for investors. This includes projects like Ethereum 2.0, appealing to investors that missed the major Ethereum investment round. A project is an approach for relaunching the whole Ethereum model globally.

Plus, the developers are pretty certain to lower the transaction fee for Ethereum. Some major changes are underway, waiting for approval from the blockchain experts to do this. In short, the future of Ethereum is packed with programs that will revolutionize and upgrade the existing Ethereum model.  

Final Note

Whether to invest in Ethereum or not depends upon you as an investor. The asset surely has its pros and cons. But one can’t possibly forget the general traits of digital assets. Traits like volatility and liquidity can simultaneously fall under the pros and cons category.