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Want to jump straight to the answer? The best crypto platform for most people is definitely eToro.
Ethereum is not a cryptocurrency — it’s a platform for creating decentralized products. Ether is the cryptocurrency that powers the Ethereum platform and blockchain.
Ether has been competing with Bitcoin for the top spot since its release in 2015 and came close to overtaking it in February 2018. Both of these coins have hit new all-time highs since then, and there appears to be more room for both to grow in 2021.
One thing is certain, the cryptocurrency market is much more volatile than the stock market. If you are particularly risk averse, this might not be the market for you.
But if you’re a long-term investor who won’t lose sight over short-term losses, Ethereum may be a good investment for you.
What to Know Before Investing in Cryptocurrency
Ethereum is a speculative investment. Like any speculative investment, you might lose your money.
It’s wise to understand the fundamentals of cryptocurrency, the blockchain and Ethereum. Checkout our educational resources here.
Unlike speculative stock investments, there are some additional risks to be aware of when investing in cryptocurrency specifically.
Cryptocurrency Wallets
Cryptocurrency wallets are a fundamental part of the ecosystem. Wallets give you the ability to easily send and receive money.
Crypto wallets use a computer science concept called public key cryptography. Public key cryptography uses complex mathematical concepts behind prime numbers to secure data better than any cypher in history. All you need to know is that cryptocurrency wallets have 2 “keys”: 1 public key and 1 private key.
Your public key is needed to send money to your wallet. Your public key is used to encrypt (or lock) any data sent your way. Data must be encrypted before being sent over the network for privacy reasons.
As the name suggests, your private key must never be shared with anyone. This is because your private key can be used to decrypt, or unlock, any data that was locked by your public key.
Most wallets manage your private key for you. All you have to do is maintain access to your wallet.
If you get logged out, you’ll need a recovery tool called a “seed phrase” to log back in. A seed phrase is a set of words, and most wallets will provide you with a seed phrase for recovery purposes when you create the wallet.
There are 2 types of wallets: digital and hardware. MetaMask and Coinbase Wallet are typically the best route to go for digital wallets, and the Ledger Nano X is the best hardware wallet.
If you lose access to your cryptocurrency wallet, whatever cryptocurrency was in the wallet is now lost forever. The best way to prevent this, is to handle your seed phrase with extreme care.
A forgotten seed phrase can remove currency from circulation forever. A memorized seed phrase can carry billions of dollars across borders with 0 physical evidence.
Now that you know how to keep your cryptocurrency safe, your biggest vulnerability is market volatility. Nothing can protect you from that. You will enter the cryptocurrency market with your own strategy and personal risk tolerance.
Disclaimer: Do not take out a loan to invest in cryptocurrencies like Ethereum. Do not purchase them with credit. Do not do anything that could endanger you or jeopardize your financial future. If you aren’t sure how much risk you are capable of handling, consult a financial advisor who is trained for this.
Where to Invest in Ethereum
Best For Crypto Trading Overall Rating Read Review Get started securely through eToro’s website More Details Best For Crypto Trading N/A 1 Minute Review eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features Best For U.S.-based cryptocurrency traders
Social and copy traders
Simple user interface
Community engagement and following other traders Pros Expansive network of social trading features
Large client base for new traders to imitate Cons U.S. traders can only buy cryptocurrency
Only 15 cryptocurrency pairs available Best For New Investors Overall Rating Read Review try for free securely through Gemini Crypto’s website More Details Best For New Investors N/A 1 Minute Review Gemini is a cryptocurrency exchange and custodian that offers investors access to 26 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x. Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader. In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review. Best For New investors looking for a simple mobile and web app
Experienced investors who need a more advanced platform with more tools
Users looking for a 1-stop-shop to buy, sell and store all of their coins Pros Easy and quick signups — can get started in as little as a few minutes
Multitude of platforms to accommodate traders of all skill levels
Hot wallets include insurance to protect your from theft and hacking attempts Cons Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app Best For Crypto Investing Overall Rating Read Review Get started securely through Coinbase’s website More Details Best For Crypto Investing N/A 1 Minute Review Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs. You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality. Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade. Best For New cryptocurrency traders
Cryptocurrency traders interested in major pairs
Cryptocurrency traders interested in a simple platform Pros Simple platform is easy to operate
Comprehensive mobile app mirrors desktop functionality
Coinbase Earn feature rewards you with crypto for learning about available coins Cons Higher fees than competitors Best For Performance Tracking Overall Rating Read Review get started securely through Altrady’s website More Details Best For Performance Tracking N/A 1 Minute Review Altrady is a comprehensive trading terminal that allows cryptocurrency investors to buy and sell on multiple exchanges from a single platform. This can be a major benefit for investors who want to diversify their portfolios quickly and easily. Altrady also provides investors with a large range of customization tools and features that can be used to create a personalized trading platform. Altrady’s system can be a bit overwhelming for investors who are complete beginners, but the platform offers a wealth of educational resources and instruction videos to help ease the learning curve. Best For Investors who have previous experience trading cryptocurrencies
Investors who are looking for a single terminal to manage all of their investments
Traders who value cross-platform syncing and the ability to invest from their desktop Pros Wide range of customization tools
Hotkeys and journaling features allow investors to make notes on their trades and progress
Its education system includes a wealth of videos showing users how to use the platform’s most popular features Cons Monthly pricing comes in addition to standard broker fees
Can be overwhelming for new users Best For No or Low Fees Overall Rating Read Review get started securely through BlockFi’s website More Details Best For No or Low Fees N/A 1 Minute Review Maybe you think cryptocurrency is the future, or perhaps you were swept up in the initial waves of Bitcoin. BlockFi may be your next step if you’re ready to evolve as a crypto investor. Whether you’re a native crypto user or curious enough to start investing, BlockFi seeks to bring institutional-grade financial products to crypto markets that often face restricted access. It strives to bring clients low-cost, simple applications designed to maximize the potential of crypto assets. Learn more in our BlockFi review. Best For Crypto native clients. You own Bitcoin now. You’re the friend who fills in the blanks when conversation turns to cryptocurrency, and you devour crypto literacy content like it’s your job (and maybe it is). BlockFi’s platform can help take your crypto assets to the next level.
Crypto fringe clients. If you’ve dabbled in buying alternative assets like crypto or know enough to be interested, BlockFi can help you take the next step.
Crypto curious clients. If you’re both intrigued by bitcoin and the type of person who obsessively learns everything you can about things you’re new to, BlockFi’s crypto asset platform might be the entry point you’re looking for. Pros Mostly fee-free platform
Market-best interest rates
Earn interest, trade and borrow from a centralized hub using the BlockFi app Cons Mostly restricted to those with a base knowledge of cryptocurrency
No dedicated relationship with an investment advisor, so best for those who have a solid handle on crypto trading Best For Mobile Traders Overall Rating Read Review get started securely through Voyager’s website More Details Best For Mobile Traders N/A 1 Minute Review Voyager is a leading name in the sphere of cryptocurrency investing, giving you access to over 50 tokens and coins. Buy, sell and swap assets using Voyager Crypto’s simple mobile platform available as a free download for iOS and Android users. When you invest through Voyager, you’ll pay nothing in commissions, which is a major benefit when compared to other cryptocurrency brokers. Voyager is also one of the only brokers we’ve seen that allows users to earn interest on their crypto investments. Though the broker could do more to improve its customer service, it’s an excellent option for beginner investors and seasoned professionals alike. Best For Cryptocurrency investors looking for a wide selection of supported projects.
Investors who prefer mobile trading.
Anyone interested in earning interest on their crypto investments. Pros Simple, straightforward and intuitive mobile platform
Wealth of investment opportunities
Allows users to earn interest on select crypto investments Cons Only available for mobile users — no desktop platform
Limited routes to contact customer service team
Advantages of Ethereum Investments
The overwhelming performance of Ethereum has attracted traditional and institutional investors alike. Ethereum and other cryptocurrencies provide you with the following advantages over traditional investments:
Liquidity. Ethereum is arguably 1 of the most liquid investment assets due to the worldwide establishment of trading platforms, exchanges and online brokerages. You can easily trade Ethereum for cash or assets like gold instantly with incredibly low fees. The high liquidity associated with bitcoin makes it a great investment vessel if you’re looking for short-term profit. Digital currencies may also be a long-term investment due to their high market demand.
Ethereum is arguably 1 of the most liquid investment assets due to the worldwide establishment of trading platforms, exchanges and online brokerages. You can easily trade Ethereum for cash or assets like gold instantly with incredibly low fees. The high liquidity associated with bitcoin makes it a great investment vessel if you’re looking for short-term profit. Digital currencies may also be a long-term investment due to their high market demand. Lower inflation risk . Unlike world currencies — which are regulated by their governments — Ethereum has a transparent inflation plan and is subject to less risk. The blockchain system is infinite, and there’s no need to worry about your cryptos losing their value.
. Unlike world currencies — which are regulated by their governments — Ethereum has a transparent inflation plan and is subject to less risk. The blockchain system is infinite, and there’s no need to worry about your cryptos losing their value. New opportunities. Ethereum and cryptocurrency trading is relatively young — new coins are becoming mainstream on a daily basis. This newness brings unpredictable swings in price and volatility, which may create opportunities for massive gains.
Disadvantages of Ethereum Investments
Ethereum may play a part in the future of monetary exchange and global computing systems, but it is equally important that you are aware of the concerns surrounding cryptocurrency investing.
Risks associated with Ethereum investments:
Volatility. The price of cryptocurrencies are always changing. If you happened to buy Bitcoin on December 17, 2017, the price was $20,000. Weeks later, you couldn’t sell your investment for more than $7,051. To avoid huge loss, keep a close eye on the market.
The price of cryptocurrencies are always changing. If you happened to buy Bitcoin on December 17, 2017, the price was $20,000. Weeks later, you couldn’t sell your investment for more than $7,051. To avoid huge loss, keep a close eye on the market. Little or no regulation . The crypto market currently operates with no major regulations. It isn’t taxed and governments have no clear stance on it. As a result, you could stand exposed to fraud and malpractice.
. The crypto market currently operates with no major regulations. It isn’t taxed and governments have no clear stance on it. As a result, you could stand exposed to fraud and malpractice. New regulation. The government is unlikely to let cryptocurrencies remain unregulated for long. New regulations could interfere with business models, and cause crashes that are entirely out of your control
The government is unlikely to let cryptocurrencies remain unregulated for long. New regulations could interfere with business models, and cause crashes that are entirely out of your control Threat of online hacking. Hacking is a threat facing cryptocurrency investors. Most exchanges let you buy and sell your cryptos using a mobile app or website. This leaves them susceptible to hacking and theft of all your investment. And cryptocurrency held on most exchanges isn’t insured by the FDIC.
Hacking is a threat facing cryptocurrency investors. Most exchanges let you buy and sell your cryptos using a mobile app or website. This leaves them susceptible to hacking and theft of all your investment. And cryptocurrency held on most exchanges isn’t insured by the FDIC. Wallets can be lost. If your hard drive crashes or virus corrupts your wallet file, you lose your bitcoins. You can go from a wealthy to bankrupt investor within seconds with no way to recover.
Is Ethereum Better Than Bitcoin?
Bitcoin and Ethereum are completely different products. Bitcoin acts as a store of value, just like gold. Ether acts as a store of value too, but the Ethereum platform takes cryptocurrency to the next level.
The Ethereum platform comes with it’s own programming language called Solidity that allows coders to write programs called “smart contracts.” Ethereum smart contracts have massive business and legal applications and represent the primary difference between the 2.
As far as which of the 2 is a better investment is impossible to say. It’s entirely possible that both Bitcoin and Ethereum will stand the test of time and coexist peacefully in the future. At the end of the day, your investment decisions must be made by you (or an investment advisor).
The best thing you can do is to educate yourself as much as possible before risking any of your hard-earned money, and never invest money you aren’t willing to lose entirely. You don’t want to end up on the front page of Wall Street Bets, after all.