How to Invest in Ethereum 2018 + Investing Ideas and Tips

A lot of people believe that Ethereum is a cryptocurrency. However, Ethereum is actually a blockchain platform with smart contract functionality which makes it a great advantage for companies and blockchain users. The cryptocurrency or monetary unit of Ethereum is actually called “Ether.”

However, for the sake of convenience we’ll continue referring to the cryptocurrency as Ethereum. This is currently the second most popular cryptocurrency, close behind Bitcoins. In the past year, its popularity has risen by 4000%, which you can see demonstrated on the chart below.

The reason for Ethereum’s rising popularity is that it has both an intrinsic value because of the currency and an industrial value to the platforms that use it because it’s also a blockchain. In this article, we’ll discuss whether it’s wise to invest in Ethereum, how to invest in Ethereum, and other related tips.

However, before you actually start buying Ethereum, you’ll have to find a means of storing it safely. There are a number of online wallets and hardware wallets in which you can store the coins. However, I highly recommend using hardware wallets as they’re offline and thus can’t be hacked. The best hardware wallets for storing Ethereum are Ledger Nano S and TREZOR.

Is it a good idea to invest in Ethereum?

Reasons for investing in Ethereum

  1. Growing Popularity: Ethereum was launched in 2013 by Vitalik Buterin. Since then it has become the second biggest cryptocurrency in the market, and had a 4000% rise in just the last year.
  2. Rising Valuation: Ethereum has been publicly traded since 2016, and there are only 18 million Ethers issues on an annual basis, that’s the cap. Currently, the value of a single ether is over $700.
  3. Ethereum is the Future: Traditional financial and banking institutions are quaking in their boots with the rise of cryptocurrencies. These decentralized currencies will be the future, and Ethereum is on the forefront to benefit from it, especially since it’s also a blockchain platform in its own right.
  4. Trading Options: Almost all exchange platforms allow you to trade in Ethereum. So you have a lot of options.
  5. Can be used Directly: More and more organizations are starting to accept Ethereum as payment for goods and services.

Concerns with Investing in Ethereum

  1. Uncertain Future: The popularity and valuation of Ether tokens has been rising exponentially. As such, investors are flocking to get a piece of it. However, such a rush is usually short-lived and it’s uncertain when Ethereum might reach a saturation point.
  2. Lack of Acceptance with Merchants: Although more businesses are starting to embrace cryptocurrencies, the visibility of Ethereum with merchants is still low, and Ethereum isn’t promoting itself as a rising payment option.
  3. No Direct Ownership: By investing in Ethereum, you’re basically investing in virtual tokens, not in the actual blockchain platform where the real value lies.

How to invest in Ethereum?

Now that you know about the risks and benefits of investing with Ethereum, it’s time to learn how to invest in Ethereum in the smartest way possible.

In order to invest in Ethereum, you need to purchase the coins. There are a lot of cryptocurrency exchange platforms in the market, and it’s all about finding which one is right for you. The good news is that most exchange platforms offer trading in Ethereum as an option. However, you need to decide which is right for you based on the geographical accessibility, transaction fees, and various other factors.

One of the simplest methods of investing in Ethereum is to use Coinbase. It’s one of the most popular exchange platforms in the market and you can use it to buy Ethereum at a low transaction fee of 3.75%. However, the major problem with Coinbase is that it’s only available in 32 countries around the world, mostly the US and Europe. If you’re interested you can immediately buy ETH with Coinbase. If you want to learn more about this platform, you can read our detailed Coinbase Review.

coinbase banner register

If Coinbase doesn’t work for you, there are plenty of other platforms as well. In the comparison table below, I’ve listed out the 5 best places to buy Ethereum. You can go through them to figure out which one works best for you.

ExchangeReviewsFeesSecuritySupported RegionPurchase
Coinbase
Coinbase
Coinbase Review3.99%Great32 Countries - Europe, US, CanadaBuy
bitpanda
BitPanda
BitPanda Review3 to 4%GoodOnly EuropeBuy
Coinmama
Coinmama
Coinmama Review6.15%Good226 countries and 24 US statesBuy
Changelly
Changelly
Changelly Review0.5%OkayGlobal, with Credit/Debit restrictionsBuy
CEX.IO
CEX.IO
CEX.IO Review7%GreatGlobal, with Credit/Debit restrictionsBuy

Ethereum Investing Tips

Before you get excited and invest in Ethereum, you should follow a few tips and guidelines. Investing in cryptocurrencies is still risky if you don’t do it right. Below are some tips to help you out:

  1. Always Research: Research everything you can about Ethereum, and its relation to other currencies, trends, prospects, and anything else you can find. This will help you determine when to invest in Ethereum and how much.
  2. Small Steps: Don’t get excited and put all your eggs in one basket or all your money in Ethereum directly. Beginners always make mistakes, it’s a part of the process. Start small and increase your investment as you learn more through experience.
  3. Use a Reliable Hardware Wallet: Online wallets are risky as they’re always connected to the internet and can thus be hacked. Hardware wallets are the most secure forms of storing your cryptocurrencies. As such, you should store them in reliable hardware wallets like Ledger Nano S and TREZOR.

Conclusion

That’s all for now! Hopefully you now have a strong understanding about whether you should invest in Ethereum, why, how, and some tips to help you along. Now that you know how to invest in Ethereum, you can start with Coinbase or any of the platforms mentioned earlier.

Do comment down below and let us know about your experience with investing in Ethereum.