The days when one half of the planet didn’t know anything about cryptos and the other half identified it only with Bitcoin are long gone. The current cryptocurrency craze is global, and Ethereum has been the talk of the town for quite some time now.
What’s more, people can use Ethereum for many different things, unlike many other cryptos. You can use it for handling smart contracts, decentralized financial services, and numerous other things. On top of that, you can make both brick-and-mortar and online transactions with your ETH and even use it to play games in Ethereum casinos.
Still, this crypto has a few downsides to consider, especially its highly volatile nature that can be either a friend or a foe depending on the price fluctuation. For this reason, you must get acquainted with its advantages and disadvantages before you make your first investment.
Good Sides of Ethereum
Ethereum hasn’t become one of the most popular cryptocurrencies today by coincidence. This highly used crypto comes with many advantages that attract users worldwide and offer perks of different kinds.
The primary benefit of Ethereum is its limitless blockchain system that doesn’t have the exact finite number of coins in circulation. This poses a lower risk of inflation compared to other cryptocurrencies, such as Bitcoin, which only has 21 million coins in the air.
Another perk is how you get to use your coins. People can trade Ethereum for various goods and services, including other cryptos. Moreover, trading isn’t limited to online purchases due to numerous land-based retailers willing to sell their products for Ethereum.
Finally, you can use Ethereum to access different apps, enabling you to create new tools. On top of that, all transactions are much faster than those made with other popular cryptocurrencies.
Ethereum Downsides
Apart from some exceptional benefits, Ethereum brings along a few downsides that may concern users. One of them is the high volatility associated with almost all cryptocurrencies.
Ethereum prices aren’t easily predictable and can fluctuate suddenly. Such things have happened in the past and are likely to happen in the future, too. For this reason, you may have pockets full of money one day and be left empty-handed the other. The fluctuation problem also applies to Ethereum fees. These regularly go up and down, shocking the users of this cryptocurrency.
Lastly, you can use Ethereum for more than one purpose, which is indeed a great thing. However, being used on multiple fronts can often cause breakdowns and flaws since it’s hard for a single entity to keep up with the improvements and innovations regarding many different aspects.
Is Ethereum a Good Investment?
Ethereum is a cryptocurrency that holds a high second position on the list of the most popular digital coins in the world. Ethereum has been used as a base for many applications thanks to its blockchain technology. In fact, crypto experts predict that Ethereum use will benefit numerous industries, such as finance, in the future.
Also, since Ethereum is unlimited, it poses a desirable asset that you can use in various ways, including classic online and land-based transactions.
On the other hand, Ethereum is a highly volatile digital currency, and no one can make any accurate predictions about the fluctuations of its price or fees. While this is a good thing in case the price goes up, and fees go down, it can also be a risky investment.
So, if you’re thinking about investing in Ethereum, you should first learn all there is to know about this popular crypto. Once you cover the basics, go through both Ethereum pros and cons and decide for yourself whether this crypto is worth your while.
