Investing In Ethereum – Is Ethereum a good investment long term?

Ethereum is the second largest cryptocurrency in terms of market capitalization. It is the product of Vitalik Buterin. The Ethereum platform, enables dozens of cryptocurrencies to exist, without having to build their own blockchain technology. Furthermore, Ethereum enables developers to set up smart contracts, that automatically execute tasks when certain conditions are met. Ethereum has two main functions of keeping things running seamlessly by compensating the mining nodes and paying people under the smart contracts platform. Ethereum’s price increased from $0.5  in 2015 to $1300+ in 2018. Was ethereum a good investment for early investors? Definitely.  But let’s see if its still worth to invest in ethereum.

Investing in Ethereum in 2019 – Is Ethereum a good investment? 

If you’re just finding out about crypto or you’ve invested in 2017 when the market crashed – you’re probably asking “is ethereum a good investment?” or “should I invest in ethereum?”. The thing is, no one can guarantee high returns. If you’re looking to easily do a 1000x – Ethereum is probably not the cryptocurrency that you want to invest in. But, if you’re looking to get a 10-20% annual ROI – Ethereum can be the solution for you.

Just like any other cryptocurrency, investing in Ethereum in 2018 was a challenge. However, at the start of 2019, investing in ETH seems to a good venture based on market performance. Ethereum has shown positive signs as it increased significantly against the dollar by surging towards the resistance at $200. However, due to the general correction in the market, the price of Ethereum was unable to break the resistance at $200. After trending sideways for many days, the price of Ethereum fell from the $183 level to the $165 level. By the time of writing, Ethereum was valued at $186.98. However is it still worth it to invest in ETH in 2019? To understand this question we need to look at what some market experts are predicting and to do your own research a bit.

First of all, Ethereum was very volatile trough 2019. Is ethereum a good investment if you’ve bought it at $110 which was the minimum for 2019? Yes. Is ethereum a good investment if you’ve bought it at $150? Again, yes. But if you’ve bought it at $300+ – then it might not be such a good investment for you, yet. We recommend anyone to speak with a CPA or someone who’s capable of offering an investment advice. However, if you’re still asking yourself “Should I invest in ethereum” and you have disposable income – we recommend you the DCA strategy.

Should I invest in Ethereum – DCA & Market Volatility 

The great mistake that everyone is doing with crypto is acquiring a lot of cryptocurrency at one point and not dividing them over months. The cryptocurrency markets are volatile and if you want to invest in ethereum – you should be ready for that. Let’s say you’ve got $10,000 disposable income for an investment. You’ve already picked Ethereum as your cryptocurrency of choice. Now, you have two options
A) Invest everything at once and wait – Not a bad strategy but not a good one either. If you pick a moment when Ethereum is up ( such as June 2019 when it was above $300 ) – your $10,000 are now around $6,000.
B) DCA strategy – The Dollar Cost Average strategy is basically a way to divide your investment in ethereum over more than 1 month. Investing in Ethereum or any other cryptocurrency should be done after you’ve checked the market, the latest news about it, its usage, what are the competitors doing and so on. And this takes more than a day or two. DCA strategy means that each month you’ll buy Ethereum for the same amount of money. For example purposes only – we’ll consider that someone bought Ethereum for $500 each month on 15th of the month:

  • January – Ethereum Price : $127 – Ethereum bought: 3.93
  • February – Ethereum Price: $123 – Ethereum bought: 4.06
  • March – Ethereum Price: $135 – Ethereum bought: 3.70
  • April – Ethereum Price: 162 – Ethereum bought: 3.08
  • June – Ethereum Price: $263 – Ethereum bought: 1.90
  • July – Ethereum Price: $223 – Ethereum bought: 2.24
  • August – Ethereum Price: 182- Ethereum bought: 2.74
  • September – Ethereum price: $189 – Ethereum bought: 2.64
  • October – Ethereum price: $184 – Ethereum bought: 2.71

Total Ethereum: 27 ETH 
Total Investment: $4500
Total Ethereum value: $5,022 ( At $186 per ethereum)

As you may notice, if you invest in ethereum with the DCA method, its a bit safer than going all in at a random price. Right now, the DCA strategy is on profit a bit over 10% in just 5 months. So is investing in ethereum worth it? Yes.  Should I invest in Ethereum? Again, do your own research and remember to apply the DCA method. Now, after one month the price of ETH could decline and go under $150 and we’d not be on profit anymore. That’s why we recommend to apply the DCA strategy for at least one year or until your budget is over. Afterwards, there comes the waiting period in which you can sell if you’re on profit or you can wait for your investment to increase while you’re adding more budget to the DCA method.

Invest in Ethereum, but get the profit 

In the previous chapter, we’ve shown why is ethereum worth buying. The profit for 5 months was above 10% and if we’d have added another 3 months from 2018 – the profit would have been a 20-25%. Now, by applying the DCA method you may not get the same results as you would have got if you’d went all in for ethereum at $87. But you’d also not lose so much like investing in ethereum at $300+. The DCA method is for beginners and for educated investors that understand that a good investment is made over time, not going all in at a random price.

But what should you do if you’ve invested in Ethereum and after one year you’ve got a good 20-30% profit? Get the profit or wait for it to grow even more?

The mistake that most of the people does here is to wait too more. Ethereum can increase in price but it can also decrease. There’s no guarantee that it will go to $300 again. So there are different things that you can do if you’re on profit:
A) Sell everything and repeat the strategy with a different crypto – You’ve got a nice 20-30% in a year with a $6k investment. In less than 3 years, you should double your money if the market goes in the right direction. If you repeat the strategy every year and the performance is about 33% per year, it will take you less than 25 years to gain your first million of dollars.
B) Sell exactly the initial investment, keep the profit in Ehereum – Another strategy that a lot of investors are doing is keeping the profit in the same currency. Basically, you’d get back your $4500 and you’d keep the remaining $522 in Ethereum ( 2.80 ETH). If Ethereum goes at $300 – your ethereum investment profit will be worth $841 instead of $522. But again, it can also go to $100 per ETH and you’d have only $280. This strategy is good for long term investments, but you must pick the right project here that doesn’t go obsolete in a few months.
C) Withdraw the profit in USD, Start DCA with another crypto  – Probably not the best strategy if the profit is not so high, but this is also a decent one. After one year or more of DCA you withdraw the profit at a certain date in USD and start the DCA method with another cryptocurrency. You may need a bit more budget for this. Now in about two years you’d a nice portfolio that could have an increase of 100% or more if you’ve picked the right cryptocurrencies.

If you’re a beginner, we recommend you to try the B) option. You don’t need any additional budget for that option and your regrets should be lower if Ethereum decrease to $100 as you’ve kept there only the profit. So you’ve only lost a potential 10% but you still have a 3-4% – which is quite decent for a beginner investor.

Is Ethereum a good investment? 

A lot of people are asking the same question : is ethereum a good investment?

The meme below speaks for itself. There’s not a clear answer on this as there isn’t one for crypto in general. But, there are people that won money even in the toughest financial times. So, what’s the difference between them and the majority that lost?

First of all, it always depend on the price that you bought the cryptocurrency. If you’ve bought 1 ETH at $1300 – you’d need more than a 10x to get on break even. You’ve bought it at $300? You need only a 50% increase to get to break even.  You bought it at $100? Wohoo! You’re already on profit with 86% (at the time on writing the article)

Investing in ethereum or any other cryptocurrency should not be made if you’re looking for a ‘get rich fast’ strategy. You’d probably have better odds to win the lottery than to purchase 1 ETH now and becoming a millionaire in a few weeks or months.

Also, are you ready to see your investment decrease by 10% in one day and waiting another month or two to get on the price that you bought it? No? Then ethereum is not a good investment for you.

But if you have patience, you’re good at doing your own research and reading everything you can about ethereum, you check Ethereum’s competitors and see what makes it special – it would probably be a good investment for you.

Everyone knows that 2017 was the year when most of the people got into cryptocurrency. And they all made the same mistake – they bought at a high price usual than normal, probably the same as the dotcom bubble.

However, the future looks bright for Ethereum. At almost 5 years since its birth, Ethereum is the second cryptocurrency by market cap and has a really utility in day to day world. People exchange daily over $5 billions worth of ETH. People use Ethereum to create their own cryptocurrency, to use it for different dApps, to send payments to a friend, to purchase service or even to book rooms. The utility of ethereum increased drastically since its birth and speaking from the technology point of view, ethereum has grown at almost the same rate as technology giants Microsoft, Oracle or Google.

 

The price of Ethereum however, remain relatively stable. In 2019 – the price of 1 ETH fluctuated between $100 and $330. For a cryptocurrency, that’s pretty much stable considering the volatility in this field. Ethereum has an average of 725,000 transactions daily – which is around 30,000 transactions per hour. The ethereum network fee is pretty low – it varies between $0.05 per transaction to $0.5 per transaction. Their development team is actively adding new features to it and in the future a lot of investors are waiting for the major change on the Ethereum network. Instead of being a proof of work based network, Ethereum wants to switch to a proof of stake network model which will incentivize the Ethereum hodlers and make it more secure.

If we take into consideration all the previous data, we might consider that ethereum is a good investment. But the answers to the questions “Should I invest in Ethereum?”or “Is Ethereum worth investing in?” should be answered by yourself. And always keep in mind: always invest an amount of money that you can live without, in case of something bad happens. We’ll speak below about some ‘ethereum price predictions’ from well known investors in the crypto space to see what they think about Ethereum’s price.

Ethereum Predictions

Predicting the price of any cryptocurrency is always a challenge based on market volatility. For Ethereum, a number of experts have taken a keen interest in the cryptocurrency considering how important the Ethereum blockchain is. The recent drop in Ethereum price has been attributed to the high number of fake projects being established on the platform. A lot of Initial Coin Offerings used the protocol of Ethereum in 2017 and 2018 were fake. Ethereum is now the one paying for the sham motives of most of these projects. The massive decline in the value of Ethereum is as a result of the low rate of new Initial Coin Offerings coming in the market. Investors are now aware, hey now have a better understanding of the landscape. This reputation has made investing in Ethereum a challenge. But what do experts say about Ethereum value in 2019 and above? Can Ethereum make a comeback?

Joseph Raczynski

Raczynski is the founder of Joe Technologist.com and a blockchain enthusiast. He has predicted that by close of 2019, ETH will close the year at $1200. He stated that the Ethereum network has the largest developer community and that Ethereum’s proof of concept is popular among institutional investors. This capability will propel Ethereum to greater heights. Its November 2019 and Ethereum is not a $1200 yet and frankly, there’s a low chance that Ethereum might go to these heights in 2019 – but who knows when a new bull market might start?

Ian McLeod

Ian McLeod is an influential technology expert at Thomas Crown Art. He predicts the value of Ethereum to hit over $500 by 2019. He recommends investing in ETH because the cryptocurrency might experience a global and monumental breakout. The technology expert also mentions that BTC might lose 50% of its crypto market share to ETH. McLeod thinks the crypto share will significantly shift in the upcoming five years. This is a much mature and realistic approximation. With the right catalyst, the ETH price might reach $500 soon.

Nigel Green

The deVere group, one of the leading International Financial consulting firms’ CEO Nigel Green, predicted that Ethereum would reach over $2500 by 2019. According to green, the bullish run of Ethereum will come due to three factors; more platforms used for trading and more demand for digital currencies, increased use of smart contracts and the decentralization of cloud computing. This is probably one of the most absurd ethereum predictions ever made so far, as we’re in November 2019 and Ethereum is just $186.

Walletinvestor

The Walletinvestor website is known to issue non-optimistic cryptocurrency price prediction. All the predictions are based on technical analysis. For Ethereum, the website opines that investing in Ethereum is a bad idea. The platform predicts a further drop in the value of Ethereum. According to present data on Ethereum (ETH) and potentially it’s market environment has been in bearish cycle last 12 months (if exists). WalletInvest AI cryptocurrency analyst implies that there will be a negative trend in the future and the ETH are not a good investment for making money. It recommends a big no when it comes to investing in Ethereum.

A bigger list can be noticed on our ethereum expert price prediction article. We recommend you to read these, but to do your own research before investing. These ”experts” are people that hold a large amount of ethereum and they can’t be unbiased. From our small list here, Ian McLeod has made of the closest ethereum predictions so far – as a $500 target by end of 2019 or 2020 is reachable.

How to Invest in Ethereum

Its worth pointing out that investing in Ethereum and any other cryptocurrencies is not really easy. You need to pick a good wallet to store those, to find an exchange from where you can purchase it and so on. Our platform of choice for investing in ethereum is Binance. Binance is a platform started in 2017 which is now the most trusted cryptocurrency exchange worldwide. Recently, they implemented the option to purchase Ethereum, Bitcoin and certain other cryptocurrencies with the credit card.

But Coinbase also have a great reputation and they have a credit card option, why not them? Basically, we do not recommend Coinbase because of the lack of support. It takes days to get an answer to a ticket there. And speaking with someone human from there? That’s not really an option. The whole Coinbase experience was a pain in the ass and we don’t recommend them. A lot of people got their accounts closed after using it for one year or more. Without any message. That’s why we consider Binance a much more reliable and easy experience.

As a wallet, we recommend you either Trezor or Ledger. Both options are paid unfortunately. So, if you’re looking to invest $50 – $100 – it might not be worth it to buy a $100 device to secure those cryptocurrencies, yet. If that’s the case, Metamask is a great option where you can safely store your Ethereum.  But how to invest in Ethereum more exactly?

  • First, you need to create an account on Binance ( Note: If you’re from US – You need to use Binance US) . There will also be an identity confirmation which should take less than an hour. If it takes more, you can always rely on the support from the website.
  • Secondly, you need to visit the “Buy and Sell Cryptocurrency” page. There you have a variety of options depending on your location. Check the ones that you can use and verify which one has a lower fee.
  • Afterwards, you need to complete the buying process which should take another hour or so. Don’t worry if your Ethereum didn’t reached your account in 10-15 minutes – it might take up to an hour or so. Also, make sure to put the Ethereum address correctly.
  • Now you have purchased your first ETH or fraction of an ETH – either protect your Binance account or send it to a Ledger, Trezor or Metamask ( We recommend you to send it to a Ledger, Trezor or Metamask addresss – not your private keys, not your money)
  • You’re pretty much done now. You’ve now invested in Ethereum,

We home this small guide will help you understand how to invest in Ethereum. If not, you can always search for youtube videos where the process is described step by step.

Verdict on Investing in ETH

Ethereum’s position as a major cryptocurrency cannot be disputed. Recently, it has scaled new heights quite consistently. Based on this reason, most investors are considering Ethereum as a long-term investment bet. Before determining whether to invest in Ethereum or not, you need to understand that you have to look into the usability as well as the application of the cryptocurrency. With an understanding of Ethereum’s usability and application, it is easier to understand how its value can appreciate in the coming months. With Ethereum, the underlying capability provides decentralized processing power as well as bandwidth. Owing to this fact, Ethereum is different as compared to other tokens which are just a token for investment. This also means that the value of Ethereum would increase in the future. However, it is not easy to settle on a specific price for Ethereum. Therefore, it is worth investing in ETH in 2019.

In 2019, we expect to see an increase in Ethereum application use. Additionally, we expect to see more companies adopt decentralized cloud-based applications. Lastly, we should expect an increase in the use of smart contracts. Now, it all depends if Ethereum will be the platform that gain the smart contracts majority or not.

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