What Is Ethereum? And When Should You Buy?
Ethereum : Understanding the way in which cryptocurrency works can be challenging even with the wealth of information currently online, and knowing the perfect time to invest in anything is incredibly difficult and is ultimately still a gamble. However, there are some ways in which you can be more confident in your decision to invest money into cryptocurrency or stocks. While it’s not guaranteed that these methods of investment will pay off, they could put you in a better position to see some positive results.
What Is Cryptocurrency?
If you’re still unsure about what cryptocurrency is, then simply put, these are digital and virtual currencies that are available to trade online. Cryptocurrencies like Bitcoin and Ether can be used to buy goods and services in online transactions, although many people choose to invest in this currency similar to buying stocks and shares as the market of these currencies fluctuates a lot and this has made some people very wealthy. These digital currencies are also decentralized, which means that there aren’t any single entities in ultimate control of them like how the Federal Reserve has control over the US Dollar. This prevents cryptocurrency exchanges from being manipulated or hacked and also provides traders with a level of anonymity.
What Is Ethereum?
Ethereum itself is what is called a blockchain platform which is simply a record of every transaction that their currency Ether (ETH) has been used for, making the currency very secure. This digital paper trail removes the need for any intermediaries like banks to process the currency meaning that you can trade it for goods and services from anyone in the world with very little effort. It is incredibly straightforward to buy Ethereum cryptocurrency or Ether, and can be done through online exchanges like Paxful.
Using a trading site like this has more benefits too as they are peer-to-peer, allowing you to find buyers and sellers of cryptocurrencies quickly and easily, while also being able to see seller ratings too. Buying ETH or other crypto coins can be a great investment if you’re looking to get into the world of online trading although it’s important that you prepare yourself for the uncertainty of the constantly changing values, just like with stocks. Make sure you are certain that you understand how all of this works by conducting plenty of research into the world of cryptocurrencies as well as the particular currency you’re investing in .
When Should You Buy?
Should you decide to buy ETH, you should know that there are fees when making Ethereum transactions. The fee, also known as Gas, is essentially the costs for making transactions on the Ethereum blockchain.
Ethereum gas price is dynamic and changes depending on how complex the exchange is or the time of day. The Ethereum blockchain is busiest at 8 AM to 1 PM (EST) and this is also the period when fees are the highest.
The best time to make an ETH transaction is on a Saturday or Sunday when the blockchain is not that active and that’s when gas prices are at the lowest.
Ultimately, this decision is up to you. While market veterans and advisors can give you tips on the best times to buy and invest in things like cryptocurrency, the market is ultimately a changing and volatile beast. We recommend identifying the most you’re willing to spend and either wait for the price to drop to this in the hopes that it begins to rise shortly afterward, or you could even invest in a higher price if it looks as though the value is increasing exponentially. At the beginning of September 2021, the price of Ethereum was near an all time high but dropped shortly afterwards and has yet to reach that same level. However, the value is rising once again presenting you with an ideal opportunity to get involved—keep watching these trends and be prepared to make your move.