How to invest in Ethereum


Ethereum is a reliable tool for investing and multiplying capital. It can be used to make money in several ways. All you have to do is choose the one that’s right for you and come up with a plan.

The cryptocurrency market is quite young and in its developmental stage. This is bad, because it can lead to loss of capital. But it is also good, because the high volatility of assets allows you to earn a large amount of money in a short time. To protect yourself from risks, you need to know how to invest in Ethereum.

Ways to make money

There are several ways to profit from Ethereum. Let’s consider them below.

  1. Coin mining using powerful computing equipment.

That is, you need to invest in the purchase of a mining farm and administer its operation. Profitability is difficult to calculate because of the different costs of electricity, as well as associated costs.

  1. Available now only in ETH 2.0. It is necessary to transfer 32 ETH into this network, as well as to block them before the whole blockchain is switched to the PoS protocol. Profitability depends on the number of validators connected. But it is possible to resort to co-staking if the user doesn’t have 32 ETH in the wallet.
  2. Assumes a constant buying and selling of crypto in order to make money on the price difference. Requires serious knowledge in the field of technical analysis.
  3. Long-term investing. A simple and calm way of investing. User buys coins and keeps them in their wallet for a long time, waiting for the asset rate to increase.

Investment tips

Cryptocurrency investing seems risky only if you invest and manage a portfolio without the necessary knowledge. But even a few simple rules allow you to diversify and mitigate risks.

Investment algorithm

  1. Choosing a strategy. You can invest in Ethereum for a short or long period of time. In the first case, you need to constantly monitor the portfolio, rebalance it or get rid of assets in time. A hot wallet or an exchange account will do. If you plan to keep crypto for a long time and expect growth in price, a cold wallet is the right choice. It provides the most reliable storage for financial assets.

2. Creating a wallet.

Users can create a wallet on one of the cryptocurrency exchanges, use the online service to store Ethereum and ERC-20 tokens, as well as download an application on their computer or smartphone. Popular online wallets for storing Ethereum are MyEtherWallet and Ethereum Web Wallet. The MetaMask browser extension is also suitable.

3. Purchasing an asset. When purchasing, you need to pay attention to the rate and the commission of the platform. The most profitable way to get Ethereum is to buy it from a seller on a decentralized resource. The fastest option is an exchanger or a centralized platform.

Investing is always associated with risks. In the case of cryptocurrencies, the risks are increased by the volatility of the assets. Therefore, before investing in Ethereum, it is necessary to independently weigh the pros and cons of such a decision.

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