What Should Ethereum Investors Do?

 
WHAT IS ETHEREUM?

-The foundation for our digital future.

Ethereum is open to everyone.

All you need is a wallet to take part.

 

Ethereum is open access to digital money and data-friendly services for everyone – no matter your background or location. It's a community-built technology behind the cryptocurrency ether (ETH) and thousands of applications you can use today.

Ethereum is a technology that lets you send cryptocurrency to anyone for a small fee. It also powers applications that everyone can use and no one can take down.

Ethereum builds on Bitcoin's innovation, with some big differences.

Both let you use digital money without payment providers or banks. But Ethereum is programmable, so you can also use it for lots of different digital assets – even Bitcoin!

This also means Ethereum is for more than payments. It's a marketplace of financial services, games and apps that can't steal your data or censor you.

Banking for everyone

Not everyone has access to financial services. But all you need to access Ethereum and its lending, borrowing and savings products is an internet connection.

A more private internet

You don't need to provide all your personal details to use an Ethereum app. Ethereum is building an economy based on value, not surveillance.

A peer-to-peer network

Ethereum allows you to move money, or make agreements, directly with someone else. You don't need to go through intermediary companies.

Censorship-resistant

No government or company has control over Ethereum. This decentralization makes it nearly impossible for anyone to stop you from receiving payments or using services on Ethereum.

Commerce guarantees

Ethereum creates a more level playing field. Customers have a secure, built-in guarantee that funds will only change hands if you provide what was agreed. You don’t need large company clout to do business.

Compatibility for the win

Better products and experiences are being built all the time because Ethereum products are compatible by default. Companies can build on each other's success.

Update: Ethereum Back Up to Around $4,200 After Thursday Drop Below $4,000. Here’s What Investors Should Do Next

Ethereum’s price climbed back up to around $4,200 Friday morning after it dropped below $4,000 Thursday.

This week’s falling price follows President Joe Biden on Monday signing a $1.2 trillion infrastructure bill into law, which contained provisions that could have significant tax implications for some crypto investors. Before this latest drop in price, Ethereum set a new all-time high last Wednesday when its price went over $4,865. The second-biggest crypto has now hit several new all-time highs in recent weeks. 

Before this week, Bitcoin and Ethereum had both been at or near their all-time highs lately, with Bitcoin setting a new all-time high over $68,000 last week as well. Even with this week’s downward trend, the recent surge in crypto prices follows a record-breaking October for the stock market, as well as the debut of the New York Stock Exchange’s first Bitcoin ETF.

What Should Ethereum Investors Do?

As with any long-term investment, experts advise to ignore the ups and downs. The latest high price doesn’t mean Ethereum’s volatility has gone away. 

“The real question is, owning these coins, are they going to continue to experience compound, exponential growth? Nothing in the fundamentals of cryptocurrency tells me that answer is yes,” says Jeremy Schnieder, the investing expert behind Personal Finance Club.

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.

If you’ve met all of those benchmarks, the best thing you can do is ignore the hype around new record highs or lows. Like with traditional, long-term investing, the best thing you can do is “set it and forget it,” Humphrey Yang, the personal finance expert behind Humphrey Talks, previously told NextAdvisor.

Resources:

https://time.com/nextadvisor/

https://ethereum.org/en/