Is it Too Late to Buy Ethereum? • Defi, NFTs and More • Benzinga

Ethereum is an open-source blockchain system that provides a platform for decentralized smart contracts to be built. This means that users from all around the world are able to build and run software that is resistant to censorship, downtime and fraud on the Ethereum network. 

The Ethereum blockchain is also able to host other cryptocurrencies, called tokens, through its ERC-20 smart contract. This has led to the development of many other cryptocurrencies that have been built on the Ethereum network. While Bitcoin is a good asset as a store of value, it is not able to support smart contracts like Ethereum can. 

Ethereum’s Outlook in 2021

Within 2021, Ethereum has continued to be a pioneer in all of decentralized finance (DeFi), as well as seeing a tremendous increase in use. With the recent popularity of non-fungible tokens (NFTs), Ethereum has been the platform of choice for building these smart contracts. Although traders may not expect to get the same returns as the past few years, there is still tremendous room for growth.

Ethereum Market Capitalization

Ethereum currently holds the 2nd-largest market capitalization within the cryptocurrency industry behind Bitcoin, with a market cap of $345 billion. Ethereum has tremendous room for growth, as we are still in the early stages of DeFi development. Ethereum smart contracts can be used for anything from gaming, advertising, identity management, supply chain management — and everything in-between. If users continue to build on Ethereum for the years to come, we can expect significant growth in market capitalization.

Is it Too Late to Buy Ethereum in 2021?

With current innovations in the DeFi space as well as the amount of decentralized applications (dApps) built on the Ethereum network, Etherum is still considered a good investment. Users will continue to trust the Ethereum network as long as smart contracts continue being developed. That being said, Ethereum is the most reputable and well-trusted open-source blockchain currently available. So, to answer the question, no –– it is not too late to purchase Ethereum.

Why it Might be Too Late to Buy Ethereum

Ethereum has run into issues when it comes to scaling transactions. With the increasing amount of transactions, Ethereum fees have surged significantly. Ethereum has addressed this problem and plans to switch to a more contemporary protocol called proof-of-stake (PoS), which will allow for increased transactions and scaling. Although If developers begin to move away from Ethereum in the meantime to start building on other open-source blockchains like Cardano (CRYPTO: ADA) or Solana (CRYPTO: SOL), then Ethereum could see a decrease in use.

Why it’s Not Too Late to Buy Ethereum

Ethereum is known as the most trusted open-source blockchain of modern time. Ethereum pioneered the way for developers to build their decentralized applications on an open-source, globally accessible, and censorship-resistant network. The amount of dApps built on the Ethereum network is increasing as developers want to build on the most reputable platform. If developers continue to build using Ethereum, there will be a significant increase in market cap, leading to a solid investment for buyers.  

How to Buy Ethereum

  1. Open a crypto exchange account.

The first step to purchasing your Ethereum would be to open an account with an exchange of your choosing. Before you begin trading you will be required to verify your identity. This involves stating your legal first and last name. Followed by selecting the government ID you wish to use (ID, passport) then taking a photo and sending it in. Finally, users must send in a picture of themselves to match the form of identification previously sent. 

  1. Fund your account. 

Once you have made your account and verified your identity, you are now able to begin purchasing Ethereum. To actually buy Ethereum, you will need to link a funding method to transfer money to your account. The most common method being a debit or credit card as well as a direct bank transfer. 

  1. Place an order.

After your account is open, and you have linked a funding method, you are now able to purchase Ethereum. Don’t worry if you don’t have enough funds to purchase 1 Ether, exchanges allow you to purchase coins in fractions, so you are able to purchase however much works best for you. Always make sure to do your own research before investing in cryptocurrency — they are extremely volatile assets. 

Best Cryptocurrency Exchanges for Ethereum

You can buy Ethereum currently on Coinbase (NASDAQ: COIN) as well as Crypto.com and eToro. A centralized exchange is a great way to start buying and trading cryptocurrency — on your computer or mobile device. Always do your own research before purchasing cryptocurrency. 

1 Minute Review

Robinhood is the broker for traders who want a simple, easy-to-understand layout without all the bells and whistles other brokers offer. Though its trading options and account types are limited, even an absolute beginner can quickly master Robinhood’s intuitive and streamlined platform. On the other hand, more advanced traders might be frustrated by Robinhood’s lack of technical analysis tools, a feature that’s now nearly universal across other platforms.

Best For
  • Beginner traders
  • Mobile traders
Pros
  • Streamlined, easy-to-understand interface
  • Mobile app with full capabilities
  • Can buy and sell cryptocurrency
Cons
  • Almost no trading analysis tools available
  • Only taxable brokerage accounts available
  • No option to open a retirement account
  • No access to mutual funds, forex or futures trading
  • Limited customer service

Commissions

Account Min

$0

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

Commissions

Depends on security and leverage

Account Min

$50 for US and Australia; $200 everywhere else

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
  • 25 cryptocurrencies
  • Expansive network of social trading features
  • Large client base for new traders to imitate
Cons
  • U.S. traders can only buy cryptocurrency

Commissions

FREE

Account Min

$10.00 USD

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

Cryptocurrency Market Prices

The total market cap for all cryptocurrencies is currently just under $2 trillion. Long-term positive sentiment in the market continues as the DeFi industry continues to expand, although we have encountered short-term sell-offs as prices struggled to stay above support. The current market structure will depend largely on whether price action can hold current levels of support. 

Is Ethereum a Good Investment in 2021?

If you believe in the development of decentralized networks and want to invest in a less volatile long-term asset within the industry, Ethereum is a great investment for you. If you are looking to accumulate quick gains with high returns, then Ethereum may not be the best option for you.

Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page.

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