Is Ethereum a Good Investment in 2023?

Even if the value of the dollar plummets, Bitcoin, like gold, will retain a separate value. Bitcoin and Ethereum are also the two largest cryptocurrencies by market cap and exchange volume, but they’re very different when you look past the popularity they share. While either can be a good choice for crypto beginners, determining which is right for you may require a closer look at your own goals.

• Ethereum does appear to have greater applicability than Bitcoin.
• Binance, KuCoin and Kraken are the three usual options for most beginner traders, since they offer some good usability features, and are relatively easy to start using, in general.
• The other way to buy Ethereum with fiat currency is to go through a peer-to-peer exchange.
• Transactions are faster on the Ethereum network than on Bitcoin’s.
• While the short-term outlook of just about every financial market leaves a lot to be desired right now, Ethereum seems to be very strong in a macro sense.

Regardless of when an investor picked up ETH, historically, it’s been possible to turn a profit simply by waiting, making ETH a great long-term crypto investment. Here are our picks for best Ethereum and cryptocurrency exchanges. Because there’s no guarantee that any crypto’s value will increase, experts advise to never invest more than 5% of your portfolio in cryptocurrency. Never invest at the risk of not meeting other financial goals like paying off high-interest debt or saving for retirement.

The Future of Ethereum vs. Bitcoin

The primary purpose of Bitcoin was to establish itself as a viable alternative to traditional fiat currencies backed by countries. Ultimately, there is no right answer to whether Ethereum is better than Bitcoin. Both serve different purposes so it depends more on your own personal conviction in their cryptocurrency or your desire for an alternative currency versus a smart contract platform. Ethereum, on the other hand, is meant to be a platform to facilitate programmatic contracts and applications via its own currency, Ether. BitDegree Crypto Reviews aim to research, uncover & simplify everything about the latest crypto services.

Cryptocurrency research by Fidelity Digital Assets led to industry-leading solutions in the securing and trading of digital assets. Top institutions worldwide trust their expertise to provide secure, reliable support. When you use Fidelity Crypto, you get access to the same powerful insights to help take on this seismic shift in finance. Avalanche is worth investing in if you’re looking for something new and different. The token hasn’t been around as long as some of the other forms of cryptocurrency, so it’s not as established yet, but it’s one of the fastest-growing projects.

Proof of stake

The second most popular form of cryptocurrency, Ethereum is an open-source network managed by users, much like Bitcoin. Unsurprisingly, price changes of Bitcoin tend to be dramatic and driven mainly by speculation. That may present some good opportunities for short-term investors, but it lessens Bitcoin’s chance to achieve that coveted status as a real currency. The growth of Bitcoin seems more dependent on whether or not it will gain acceptance as a currency. In other words, the value of an individual Bitcoin needs to remain stable and cannot fluctuate tremendously in price.

When looking at the price history of bitcoin and ethereum, BTC has achieved the highest outright price. Bitcoin traded up to https://xcritical.com/ its all-time high of $68,789.63 on 10 November 2021. ETH climbed to its all-time high on the same day, reaching $4,859.50.

In Etherium a miner, or validator, receives a value of 3 ether every time a block is added to the blockchain, and the reward will never be halved. Bitcoin’s impressive historical returns, combined with its deep liquidity and potential to power the future of online payments, makes it an attractive long-term investment target. Chainlink is a cryptocurrency and technology platform that enables blockchain platforms to securely interact with external data. Blockchain technology is being used to create applications that go beyond just enabling a digital currency. Launched in July 2015, Ethereum is the largest and most well-established, open-ended decentralized software platform. At the start of the cryptocurrency boom in 2017, Bitcoin’s market value accounted for close to 87% of the total cryptocurrency market.

Real-world utility

This helps to increase the speed of Bitcoin transactions and make those transactions cheaper, too. Nearly 90% of coins, or 18.6 million Bitcoins, have already been mined. The rate of new BTC creation gets slower over time, through a process known as Bitcoin halving. The last Bitcoin halving was in May 2020 and, at the current pace, the next halving will only be at some point in 2024.

All trades on the platform are custody-free with no registration needed. Like ethereum, bitcoin has stalled over the past month as well The token set a new all-time high when it went over $68,000 on Nov. 10. The future of cryptocurrency is sure to include plenty more volatility in the price of bitcoin and ethereum, and experts’ advice for investors remains the same. Ethereum offers an equally attractive outlook based on future growth projections.

The Merge will make Ethereum faster, more scalable, more resilient to network outages, and more capable of defending its competitive moat. While Bitcoin is still the leading crypto by market capitalization, the next big crypto rally may see Ethereum overtake it. The potential applications of Ethereum are wide-ranging and are powered by its native cryptographic token, ether . In 2014, Ethereum launched a presale for ether, which received an overwhelming response.

Is Ethereum A Good Investment In 2023

The choice is entirely up to you to choose a winner between Bitcoin vs. Ethereum. Bitcoin has over 18 million bitcoins currently in existence, and Ethereum has 118 million ether. Now even though Ethereum has easily crossed the 100 million mark, the market capitalization for Bitcoin is $781 billion, whereas for Ethereum it’s only $368 billion.

Which brings us to the second reason Ethereum is a better long-term buy than Bitcoin. Quite simply, there is more real-world utility to Ethereum than Bitcoin. Developers have created non-fungible tokens , smart contracts, and decentralized finance protocols, all of which run on top of the Ethereum blockchain. There is an entire ecosystem around Ethereum that doesn’t exist with Bitcoin. Ethereum is a blockchain-based software platform with the native coin, ether.

These fees can sometimes come on top of whatever fee you might be paying to the crypto platform or payment provider you’re using. Rather than choosing to invest in bitcoin or ethereum, some cryptocurrency investors opt to include both in their portfolios. There was another price spike in June 2019 before prices retreated again. While there were some exceptions, the broad cryptocurrency market trend bottomed out in March 2020 as investors sold off financial assets of almost all classes during the Covid-19 pandemic.

Should I Invest in Ethereum Long-Term? (1 Year + Holding Time)

To use Ethereum, developers have to buy and pay fees to the network in Ethereum’s native digital currency, ether. Have emerged as the two top options for crypto investors looking for relative safety. Bitcoin and Ethereum have the longest track records, a demonstrated ability to overcome down market cycles, and very deep liquidity. Together, these two coins account for nearly 60% of total crypto market capitalization. While bitcoin is designed as a currency and a store of value, the Ethereum network is intended for complex smart contracts and decentralized applications. Besides the fact that Bitcoin and Ethereum are popular cryptocurrency blockchains, another key similarity between Bitcoin and Ethereum is network adoption.

We strive to present all the information & pricing as accurately as possible, but we cannot ensure that the data is always up to date. For more on Ethereum as in investment choice, see our Ethereum price prediction. Considered the world’s first desktop wallet that supports multiple cryptocurrencies, this wallet has an attractive display that makes it easy to view your crypto balances. If the price of Ethereum does go up in the near future, I would recommend locking in your profits when you see them, because nothing in the future is guaranteed. Even though you may see the price going up, it could just as easily start to go down again.

Coinbase vs. Robinhood

They are both cryptocurrencies, and together, they make up more than half of the overall crypto market. Bitcoin and Ethereum is that Bitcoin was designed as a way to carry out relatively simple digital payments. At the same time, Ethereum can support more complex financial software. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.

This means that Litecoin can confirm the legitimacy of transactions much more quickly. This article/post contains references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services. The latest real estate investing content delivered straight to your inbox.

Digital assets are NOT backed by any government or central bank. The risk of loss in trading or holding digital assets can be substantial. You should carefully consider whether interacting, holding, or trading digital assets is suitable for you in light of your financial condition.

The predictions platform also stated that according to their forecasts, an increase in the price of Ethereum is expected over the coming years making it a solid long-term pick. The NFT sector is one of the most rapidly evolving areas in cryptocurrency and a large portion of the best NFTs are built on the Ethereum network. Naturally, this has drastically increased ethereum vs bitcoin the number of transactions taking place on the network, booting its dominance. With NFTs quickly being picked up by mainstream companies this is very promising for Ethereum. To make it more simple for investors to determine whether Ethereum holds enough utility to be considered a worthwhile investment, we’ve outlined a few of its top uses below.