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This is the best time to buy Ethereum if you have any dreams of becoming a millionaire through cryptocurrency investment.
It is on a consolidation phase after hitting an all-time high earlier this month. Trading at an average of $4,200, some analysts believe this is the lowest it could ever get and the next bull run could have it flying towards the $10,000 mark.
There is no doubt in the market Ethereum will get to this price. It Is just a matter of when. After the latest rally, buyers are waiting for signal confirmation to get in the market.
What is Ethereum?
Ethereum is an open-source blockchain that was launched in 2014 and is one of the most successful cryptocurrencies in the market through its coin Ether. It ranks second just after Bitcoin with a total market valuation exceeding 500 billion dollars.
Since its launch, it continues to gain at price and currently has a market value of 4,300 dollars. Over the years, Ethereum has market leadership in some blockchain solutions such as
- Development and deployment of Non-fungible Tokens
- Decentralized finance
- Open Internet
Ethereum Coin Burning
Ethereum is accelerating the burning of coins after the latest network Update. This is a game-changer as it will reduce the number of coins in the market.
Supply is a key component in determining the price. Ethereum does not have a cap so it is necessary to burn coins to make it deflationary. Unlike Bitcoin that has a hard cap of 21 million coins, Ethereum coins mining is indefinite.
The burning is already removing the huge amount of supply from the market. In the long term, this will help in growing the price of Ether.
This presents a great buying opportunity before the burning can hit optimal levels.
Buying the Dip
The basic idea of investing is buying low and selling high. After a long period of price gains, Ether’s price is trading lower after a fall in the last few days.
This presents a good opportunity to buy lower before the next bull run comes. It is natural for the price of financial assets to move up and down depending on who is in control. It is even more common for cryptocurrencies because of their high volatility characteristic.
Having lost almost 20 % from its highs, this is the right opportunity to get in as the next rally could be imminent.
Financial markets take time to return good profits. Only those investors with the required amount of patience get the best from the market.
The majority of the new investors joining the cryptocurrencies wagon believe it is a get-rich-quick scheme. Unfortunately, this is not true. Some of the leading coins such as Ethereum and Bitcoin have been in the market for 7 and 11 years respectively to get to their current price levels.
To make good returns in this market, you need to hold and wait. With time, demand will rise causing the price to shoot.
There are still some factors that need fixing such as regulations. These have made it a challenge for some investors to come in. However, with time, policymakers will align and hopefully make the industry lucrative.