Ethereum (ETH) is a distributed, open source distributed computing platform and an operating system with intelligent contractual functionality. Unlike Bitcoin, Ethereum offers low transaction costs. In 2014, when the project was announced, the ICO collected $ 18 million in Bitcoin or $ 0,4 for ETH. The project started in 2015, with the market price reaching $ 14 in 2016, with market capitalization exceeding $ 1 billion.
What is Ethereum (ETH)?
It is a platform for creating decentralized online services based on blockchain and smart contracts. The Ethereum concept was developed by the founder of the Bitcoin Vitalik Buterin magazine at the end of 2013, and the network started on July 30, 2015. Ethereum has greatly simplified the deployment of technology as an open source platform. blockchain, which attracts not only new startups, but also the largest software developers, such as Microsoft or IBM.
To create a cryptool (crypto agent) at Ethereum, you must first create a smart agreement and then begin to pay a registration fee for each transaction. For the crypt of the currency, smart contracts contain the parameters of the encryption tokens and the logic behind it.
Trading: benefits and risks
There are three ways to earn money with Ethereum crypto: stock market speculation, mining and trading with a difference (CFD). The first option is outdated, since the prospects for growth in assets in 2019 are not as great as last year. In addition, the opening of short positions on the stock market requires a loan from an intermediary, which means additional risks without providing a profit.
Mining is still important, but it's very expensive. This requires a lot of investment in equipment. Therefore, crypto trading is the optimal way to earn. Compared to speculation and mining, it has the following advantages:
- Opportunity to win at lower prices. Instead of a long position, you need to open it briefly. The profit mechanism is simple: reducing the cost of cryptography is another advantage of the pair.
- Crypto currents are extremely variable. They are therefore suitable for scalping – ultra short-term trading. Forex can take you a few minutes, which is convenient in unstable markets. With proper scalping, we can make profit faster.
- There is no need to physically buy crypts.
Compared to other methods, ETH trading in the cryptographic market has the following deficiencies:
- Because of the volatility of crypto-trading, Ethereum is not recommended for beginners.
- A lack of knowledge of the foundations makes trading more risky, and pure technical analysis is associated with a number of wrong signals.
- Because of the high market noise, it is difficult to use automated consultants.
In order to minimize these risks, you only need to leave a crypto currency that is diluted with less volatile instruments for a small amount of a trading portfolio.
Today, there are two main ways to invest in Ethereum: do it directly (ie simply invest money in the purchase of crypt) or indirectly (to invest in projects related to the platform).
Investments in crypts
Most experts agree that Ethereum is not yet a cryptowoo that needs to be purchased and stored in large quantities for the rainy day. However, if you correctly capture the moment of interest rate fluctuations, you can earn a good profit in a short time. For example, you can buy Ethereum at $ 100 and sell it within $ 400 a month. In addition, market capitalization and the price of Ehthereum are rising (USD 33,065,699,505 and USD 309,49 in July 2019), and the purchase of this crypt is a very promising solution today.
Investments in projects
Experts at CoinMarketCap estimate that 7 of the 10 largest cryptographic assets are based on Ethereum. For example, the main projects are currently UNUS SED LEO with market capitalization of $ 1,540,334,028, Chainlink with 1,081,852,398 $ and Maker with $ 734,791,316. Many big investors believe that it is strategically more advantageous not only to purchase ether, but to invest in platform-related projects. Ultimately, Ethereum is essentially nothing more than a Ethereum flow blocker, a large platform for creating decentralized applications.
Well known people are talking about Ethereum
Here is something that famous celebrities are saying about Ethereum:
"I often ask the startups over Ethereum:" Can you tell me why using the Ethereum blocker is better than Excel? "And if they find a good answer, you'll know something really interesting."
– Vitalik Buterin, founder of Ethereum
"I like this thing – bitcoin, ethereum, blockchain technology – and what's the future."
– Abigail Johnson, Executive Director and President of Fidelity Investments
"Selling smart channel channels was not really possible before Ethereum, so they are a newer concept. I think this style will become the most widespread over time."
– Fred Ehrsam, co-founder of Coinbase
"Whatever happens with bitcoin, other crypto currents are becoming more and more effective, and for example, Ethereum has much greater transparency."
– Richard Quest, a journalist
Ethereum in the near future (2019 – 2020)
Crypto analyst Bobby Ulleri uses a world-based economy model and the role of distributed database technology in it. According to Ulleria, Ethereum will represent 25% of the total crypto-crypt market, which will be valued at $ 4.5 trillion in 2020. Since the maximum number of ETH chips is not limited, Ulleri uses the number of 100 million proposed by the creator of the crypt Vitalik Buterin in his calculations. Thus, it turns out that Ethereum's capitalization will be $ 1 trillion in 2020 and that the token will cost around $ 11,000.
If Bobby's forecast comes true, the Ethereum price must increase by 770% compared to the historic highest value of $ 1,448. This number does not seem unrealistic, as we remember Ethereum, which rose by 10,000 in 2017. In order to achieve such a huge increase, the capital of large companies should be attracted, which will largely depend on the position of the authorities in the crypts.
Source: Monfex Research ()