Before You Consider Buying Ethereum, Take A Look at These Factors

Ethereum continues to be the dominant DeFi ecosystem, accounting for roughly 60% of the total value locked. The rise of different networks as alternatives for Ethereum’s DeFi has sparked the attention of cybercriminals. Not only do cybercriminals target the bridges between blockchains, but also crypto wallets. Many people have become victims of attacks, their funds being partially or entirely stolen. If you’re not vigilant, cyber thieves can hack into your Ethereum wallet and get away with your money. 

Cold storage is one of the safest ways to hold Ether. It’s a physical device that keeps your digital assets offline. If you purchase a large amount of cryptocurrency, use a cold wallet, even if it’s less convenient, as it’s always offline. Sacrifice speed for security. Even though the cold wallet is plugged into the computer or connected via Bluetooth, the funds stored on the USB drive are difficult, if not impossible, to steal. If you notice suspicious activity on your account, lock it. Most importantly, notify the cryptocurrency exchange. 

The Ethereum network is currently undergoing an upgrade, which can affect crypto investments. Ethereum 2.0 is based on the proof-of-stake model. Participants, named validators, lock up set amounts of cryptocurrency in a smart contract. In exchange, they receive an opportunity to validate new transactions and earn a reward. It’s expected that the transition to proof-of-stake will make the blockchain faster and more energy-efficient. Additionally, it will have lower transaction fees for users. 

You don’t need to do anything in light of the merge. Nevertheless, you can get more involved in the upgrade by helping to test. Either way, your holdings remain the same. It will take some time before everything is in place, so there’s no reason to worry. Even if you’re already an investor, this is a good moment of education. Take advantage of this chance to strengthen your knowledge about cryptocurrency and blockchain. As you begin to understand, you’ll realize how rewarding this technology can be. 

You can use a smart contract to create your own digital currency. If you’re willing to take on the role of a technology expert, go right ahead. Creating a coin shouldn’t take more than 5 minutes. All you have to do is copy the code of Ethereum and add a new variable. Decide what you want your token to be. More precisely, you need a name and symbol. And let’s not forget about decimal points. The supply you set for the token is linked to the total number of decimal places that you set. 

Tokens are faster and cheaper to create. Plus, you enjoy the security features offered by the Ethereum blockchain. A token is a right choice if you want to create a dapp (decentralized finance app) or a play-to-earn game. Given the pace at which blockchain technology is developing, soon enough, cryptocurrencies will become mainstream. Cryptocurrencies are becoming a matter of interest for banks and governments around the world. Ethereum has deep roots in Singapore, where the central bank plans to tokenize securities.  

To conclude, Ethereum is one of the oldest cryptocurrencies, so it’s widely accepted and used in numerous real-world transactions. If you’re wondering what digital asset to invest in, you have the answer. There are several options to add Ethereum to your investment portfolio, such as buying ETH tokens, buying shares in an ETF, and buying ETH futures. The choice is up to you. 

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.