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Ethereum has become a hot topic in social discussions. Reports by cryptocurrency analysts indicate that the future of this digital currency looks very bright. By any standards, Ethereum seems to be the best thing after Bitcoin. Many Australians have already invested in it. More investors are expected to come on board as the cryptocurrency continues to rise.
And although it looks like some investors have missed the bull run, there are still many opportunities of earning huge returns. On the other hand, the term Ethereum is still foreign to majority of potential investors. Some people are investing blindly just because everyone is buying. In fact, a considerable number of Ethereum investors don’t know what to do after buying the digital currency. Below are tips that can guide you when buying this precious cryptocurrency.
1. Start from the Bottom
When you buy Ethereum, you wait until its value has swelled to dispose it. If you therefore intend to invest in this cryptocurrency, this is the right time to buy because it’s trading at a low price. If you buy now, you will spend less money than you would if you chose to wait until Ethereum has appreciated so much. As a matter of fact, this strategy is applied in all digital currencies. Take Bitcoin for instance, the currency was trading at $20,000 a few weeks ago. It would be a bad idea to invest in Bitcoin when its price is too high. Just so you may know, it’s the investors who bought Bitcoin a few years ago that are laughing all the way to the bank. At the end of it all, you have to sell your Ethereum when the selling price is higher than buying price.
2. Patience is King
In the world of digital currency, success belongs to those who can afford to wait. This is because you can’t buy Ethereum today and expect it to rise in a few days. You must actually give it at least 6 months for it to appreciate by a considerable margin. And that’s why it’s advisable you invest using money that you don’t need in the near future. Those who bought Bitcoin in the last weeks of December have to wait until the price recovers from the current market fluctuations. In fact, most cryptocurrencies first fluctuate downwards before moving northwards. Besides that, there are months when the price will be dormant due to market consolidation.
3. Hedge Your Investment with Other Cryptocurrencies
Every investment has its risks. Ethereum comes with an equal measure of risks. This is because the electronic currency can depreciate at the speed of lightning. When the market falls with a thud, it means that there is nothing to salvage because a huge chunk of your money is gone. You can protect your investment from such uncertain circumstances by buying other cryptocurrencies. If Ethereum loses its value, you will still make profits from the other cryptocurrencies that are rising. The good thing is that there are tens of electronic currencies to choose from.
4. Find a Mobile Wallet
Cryptocurrencies are not regulated by any government. You can therefore lose all your money in case the platform you are using to trade in Ethereum closes shop. It’s actually advisable you set up a mobile wallet so that you can use it to hold your money. The advantage of storing cash in a virtual wallet is that they are very secure because they are answerable to the government. In fact, you should transfer all your gains from trading in Ethereum to your mobile wallet account. The best mobile wallets are available at Crypto Head.