How to Invest in Ethereum Today: Practical Guide

Is it worth investing in Ethereum? Find out all the details here.

Why invest in Ethereum? You have probably asked yourself this question at least once in recent times.

Considering that it is the cryptocurrency that stole all attention from Bitcoin and is revealed as an almost natural consequence. In fact, it has reported rising records to make this market asset one of the most attractive of 2021: Will it continue to be like this for 2022?

During the course of the guide we will delve into everything related to the crypto Ethereum (ETH) , with a focus on future forecasts and growth margins that could still make it one of the most promising assets in the financial markets.

To invest in Ethereum successfully in fact, it is not only important to analyze the stock, but also and above all to operate with advantageous offers and investment conditions .

And that is why in the next paragraphs we will first deal with technical issues related to investments in Ethereum.
 

How to invest in Ethereum

To invest in Ethereum, one of the absolute protagonists of the cryptocurrency market, you will have to reflect on the solutions available, but that adapt to your needs, especially from an economic point of view.

Among these, the main ones are essentially two:
  • Invest with an exchange ;
  • Online commerce on the best platforms .
Choosing between the two will depend on your objectives and the strategies you intend to adopt . In fact, in the case of exchanges, they lend themselves well to investing in Ethereum with long-term perspectives.

On the contrary, if you intend to carry out speculative operations, taking advantage of frequent and often abrupt price fluctuations typical of Ethereum, you should evaluate a valid platform for online trading.

Regardless of how you intend to invest in Ethereum, our advice is to pay attention to the reliability and professionalism of the broker you trust.

More specifically, you must verify the presence of regulations and authorizations issued by international control bodies, such as CySEC, for European investors.

Meanwhile, we have inserted a table that you can consult, from which you can find out about the best trading brokers and the safest exchanges to invest in Ethereum:

Invest in Ethereum with the best online trading platforms

Investing in Ethereum through the best online trading platforms is an ideal option both for following intraday trading strategies and for medium/long-term negotiations.

The main advantages that increasingly push retail traders who carry out online operations lie in the nature of CFDs: an acronym for “ Contracts for Difference” , which indicates derivative financial instruments.

In fact, by investing in ETH with one of the brokers mentioned above, you can speculate on the price changes of this asset to obtain personal advantages.

Furthermore, you can even opt for short selling : an operation through which you can possibly bet on the decline of Ethereum, to increase your chances of remuneration.

An additional benefit that may interest you concerns the commissions charged by brokers : based on the spread, they are economical even if you have small sums.

Where to invest in Ethereum: the best cryptocurrency exchanges

In addition to speculative investments in Ethereum you can also rely on other types of trading, such as those available on exchanges.

As you probably already know, these are online platforms created specifically to allow financial transactions (buying or selling) of cryptocurrencies.

In fact, using an exchange you can build a real crypto wallet , in which you keep the amount of Ethereum you purchased, offline and ensuring high security standard .

One of the attractions shared by professional and reliable exchanges also refers to the immediacy with which orders are placed .

In a fickle and densely unstable context such as the one in which the ETH digital currency finds itself, it is clear that we must prefer methods that favor the opening or closing of a position in a few moments.

As we have already mentioned, these are more suitable solutions for those who intend to invest in Ethereum in the long term , since the exchanges allow the direct purchase of the chosen assets.

What does it mean? Very simple: as usual, even in this situation, you will make profits only if the value of Ethereum were to increase.

Of course, thanks to the numerous financial analysis tools available, it will be much easier to study and analyze the current situation that ETH is experiencing in the market.

Before individually presenting the best exchanges to consider to buy Ethereum, we propose the commission plan provided for each one. Although these are costs related to trading volumes, they seem to be within the reach of even novice users.
ExchangeFees on investments in Ethereum
Coinbase1.49% depending on volumes and payment methods
Binance0.1% based on volumes for 30 days
BitPanda0.1%/0.15% based on volumes for 30 days

Why invest in Ethereum: Main characteristics of the ETH cryptocurrency 

One of the questions that many traders still ask themselves today is: “Why invest in Ethereum?” .

To answer the question, we need to analyze the nature of ETH, the cryptocurrency launched after the project of the same name.

In fact, the rapid growth of the digital currency in the markets is closely related to innovations introduced by the Ethereum blockchain .

Thanks to the numerous practical applications that the services related to this project have introduced in the financial sphere, Ethereum has begun to enjoy a visibility that surpasses even the record obtained from Bitcoins.

Ethereum supports NFT tokens and the increasingly used Smart Contracts , so it also enjoys an important position in the booming DeFi , or Decentralized Finance, sector.

The characteristics that summarize the innovative nature of the decentralized Ethereum blockchain are the following:
  • Sustainability;
  • Scalability;
  • Safety.
Such information will help you understand strengths and growth rates of the Ethereum crypto in the medium / long term.

We remind you to also consider the daily volatility levels that make the digital currency in question subject to multiple price changes in the short term.

Therefore, it seems to also lend itself well to operations carried out through CFDs.

Investing in Ethereum: Historical numbers

One of the questions to investigate to understand if Ethereum still has interesting growth margins for its future financial operations, refers to a mention of historical data performances reported in the market.

Ethereum for some time after the first listing on the market kept the value of 1 euro constant, as it remained an ecosystem that did not enjoy the current visibility.

After that, as the graph also shows, it suffered some fluctuating phases , until reaching a first all-time high during the first part of 2018.

With a value that stood at 1,120 dollars, the year ended with a significant depreciation: Ethereum was trading for only 251 dollars.

The image clearly shows an upward spike in the value of Ethereum during 2021: with greater blockchain diffusion , the cryptocurrency managed to triple its initial price.

In fact, in March of that year, Ethereum conquered the market, reaching $3,746.76: a real historical record.

After that stage, an increase in trading volume was found in Ethereum , which was among the best cryptocurrencies of 2021.

How to speculate on Ethereum with technical analysis

Technical analysis will be a winning weapon that you will have to exploit both to speculate, through a trading platform, on Ethereum.

In fact, it is a discipline that will allow you to study the performance of crypto over a short period of time , to identify volatility levels and the trend to take advantage of right now.

To analyze the Ethereum market trend, first of all, you will need to use a trading chart to apply specific indicators.

In the meantime, here's an example that might make it easier for novice traders to understand an unfamiliar topic:

We perform our analysis applying a single trading indicator: a 20-period simple moving average. It is a tool that you can interpret intuitively, essential for:
  • Determine the entry and exit points of the market;
  • Identify the dominant market trend .
In the image we have inserted, we have pointed out a downward moment for the Ethereum cryptocurrency, which lasted almost 24 hours. Furthermore, a brief upward correction phase was also highlighted, which did not stop the decline of ETH.

However, by looking at the chart, we can see how the cryptocurrency is frequently subject to price fluctuations. , as it shows the interaction between the moving average and the chart.

Situations like these seem tempting to speculate on Ethereum, proceeding with the Short Sale operation.

Forecast for 2022: Is Ethereum worth investing in?

Taking care of the aspect of Ethereum forecasts provides an advantage to investors, since they will have the opportunity to develop a strategy in line with the direction of the market. towards which the cryptocurrency could move.

The chart shows a gradual rise , but certainly tempting to invest in Ethereum.

From the forecasts it also appears that the maximum target price for the first half of 2022 is $4,500 : an interesting result for medium/term investments.

In fact, several analysts have spoken out on the matter and have identified a maximum price range for Ethereum that is between $5,000 and $5,500 by the end of 2022.

Our advice is to study the market constantly and stay updated on any News on Ethereum: we remind you that you will have to take into account the sudden trend reversals to which the cryptocurrency is subject.

Long-term Ethereum forecasts

In case you want to make a long-term investment in Ethereum , it is good that you also evaluate the forecasts related to a less near fu

ture for the digital currency.

Even from a broader perspective, it seems that the future scenarios for Ethereum are really positive. In fact, most financial analysts agree that the Ethereum project is one of the strongest in the DeFi field.

In addition, they highlight the continuous updates implemented to improve the services offered, which make the blockchain and, consequently, offer greater stability to the cryptocurrency.

With market demand likely to grow, by 2025 the price of Ethereum could be between $7,500 and $8,000.

While these are market projections rather than solid information, the digital currency appears to have a solid foundation from which to undertake substantial growth over the course of 4 years.

Such information emphasizes the financial support for Ethereum even in the eyes of investors interested in longer-term transactions than investors who trade daily or weekly.

Investing in Ethereum: Expert Opinions

To understand if, in fact, it is worth investing in Ethereum, we have decided to report the opinions of the experts who have expressed themselves on the matter.

After booming in early 2021, the cryptocurrency took on a completely different look than in the past, managing to eclipse even Bitcoin.

That is why it aroused the attention of analysts and investors , all of whom were attracted by the sudden positive results recorded in the markets .

A rebound in the value of Bitcoin has recently been seen: now considered a refuge from inflation. Consequently, observing a close correlation between the two, experts began to push for a buy their Ethereum.

There is another factor that analysts present to explain the reasons for the growth of ETH in the market: with a decrease in the cryptocurrencies available on the best exchanges, demand will only increase.

In fact, on the one hand, it will be necessary to take into account traders who intend to keep the ETH purchased due to the reduction in those available for trading in the market.

On the other hand, it is necessary to take into account investors who will begin to show interest in cryptocurrencies, causing their value to jump to high levels again.

It seems that the attitude of trust shown towards Ethereum and the project behind the market asset is pushing more and more speculators to enter the market.

Of course, our advice is to be cautious and consider all necessary precautionary measures to protect your investments , including risk management tools like stop loss.

Main alternatives to invest

“What are valid alternatives to Ethereum?” Although the gods are more than positive about this cryptocurrency, we also know that several investors are focusing their attention on emerging cryptocurrencies.

These are market assets linked to innovative and cutting-edge projects, characterized by high growth opportunities.

This means playing early: You'll be investing in a cryptocurrency that hasn't hit its all-time high yet, but is headed on a bullish path.

Among the best that are proposed as alternatives to Ethereum, we can propose:
  • Neo (NEO): a project that has established itself as one of the main competitors of Ethereum, seems to be predisposed to exponential growth by offering an integrated and complete blockchain . Characterized by a very high market capitalization, the emerging cryptocurrency in question is among the best to invest in 2021;
  • Decentraland (MANA): Belonging to the project known as Decentraland, this cryptocurrency has reported some particularly profitable performances for dynamic traders attentive to market news. The medium-term forecasts make the asset favorable for speculative CFD operations, as well as for long-term investments if we consider the potential of the project in question;
  • Chainlink (LINK): Ecosystem designed to increase security standards in the world of finance by adopting smart Conctracs like Ethereum. The long-term outlook makes Chainlink a truly promising cryptocurrency, expected to reach $150 by 2025.
In case you are also fascinated by this market, you could consider broadening your perspectives and pursuing a diversification strategy.

Indeed, by inserting into your wallet a number that includes the 8/15 cryptocurrency , you will be able to have different sources of income and dilute the risks of loss.

final words

Investing in Ethereum is an option that, at the moment, seems to be shared even by investors who have no experience in the world of cryptocurrencies.

Although it is one of the most liquid tokens in the world , it is also full of pitfalls that can be overcome by choosing the investment method that best suits your needs.

In the course of the guide, in fact, we have proposed the best cryptocurrency exchanges and platforms with which to trade on Ethereum.

While this is a careful selection of reliable and professional brokers , the choice can only take place according to subjective and personal needs. In terms of quality, they are all somewhat the same.

In conclusion, by combining a good broker with precise trading strategies, investing in Ethereum could prove to be a decidedly profitable option in both the short and long term.

Investing in Ethereum: Frequently Asked Questions

How to invest in Ethereum?

Investing in Ethereum presents investors with a choice: Use a cryptocurrency exchange or CFD trading platform. If you are opting for long-term transactions, an exchange could be the right choice. Additionally, you can consider the proposal of the best trading brokers: by opening a CFD account, you can invest in Ethereum with competitive commissions and in complete security.

What are the long-term projections for Ethereum?

In the long term, both technical indicators and leading analysts predict a growth in market demand and, consequently, in the value of Ethereum. In fact, in 2025 it could reach a maximum value of $8000.

Is it worth investing in Ethereum?

Investing in Ethereum could be a convenient option for both speculation and medium/long-term investments. The reasons are explained by analyzing the potential hidden behind the increasingly advanced decentralized blockchain proposed by Ethereum.
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