Ethereum is the first serious competitor to Bitcoin in the world. The concept of the coin involves great benefits for investors, which led to an exponential increase in capitalization and the output of the coin in second place in popularity.
Ethereum was created not only as a cryptocurrency but as a platform for decentralized applications, which use blockchain technology. In 2019, more than 87% of all DApps work with the Ethereum.
Moreover, the tool allows creating companies to bringing in funds for startups, which use tokens payment. In simple words, the platform guarantees investors the opportunity of a stable income and for the developer, it allows to find funds for the project implementation.
IEther has no limited emission, and each month the rate of production of coins is growing. This, coupled with investor investments, leads to the spontaneous growth of the market and its capitalization.
With a relatively low price of the asset (30-35 times lower than Bitcoin), access to the purchase and further trading of the coin has a wide range of users. In 2017, a third of all coins belonged to important investors, and by 2019 this figure decreased to 1/5.
Ethereum developers have made certain concessions to users and reduced the complexity of creating wallets. This has led to data protection problems.
In April 2019, a hacker, whom journalists called "Blockchain Bandit", stole 45 thousand ETH, which was equivalent to 10 million USD at the current rate. The cyber master selected the private keys, which consisted of simple numbers combinations, and got access to dozens of wallets.
Also, a certain inconvenience is that users need to set the GAS Commission for the translation. February 2019 was marked by the most expensive Commission in the world, the amount of which was 2100 ETH (230 thousand dollars), while the transfer amount was only 0.1 ETH.
The money went to Sparkpool. The company made the exception and found the absent-minded sender and returned him half of the amount. Recall, that as a general rule, all cryptocurrency payments are irreversible and cannot be canceled.
Despite some inconveniences and gaps in protection, Ethereum is extremely attractive for investors and looks like one of the most promising cryptocurrencies. Therefore, trading at short and medium distances is well-taken.
The General trend is set by Bitcoin, but Ethereum has its distinctive features that should be taken into account by trading. So, in 2017-2018, the rate was strongly influenced by the ICO boom. Huge injections into the cryptocurrency contributed to its rapid growth.
In practice, the mechanism was not as successful as investors expected, which led to an outflow of capital and a 4-fold drawdown. While other currencies on the background of the fall of Bitcoin fell only 2-3 times.
However, this proved to be a good entry point as the rate equalized almost immediately and even bypassed nearby competitors. The founder of the coin, Vitaly Buterin, regularly announces innovations and useful upgrades of the coin, which leads to its rise in price.
It’s also worth noting that this is the most profitable asset for mining, so the price of the asset is affected by a direct relationship with the costs of maintaining the network. As miners’ spending grows, the coin becomes more expensive to cover the cost of maintaining the network.
Like other cryptocurrencies,Ethereum is dependent on political news. Any threats from politicians, even those that are not related to the financial sector, lead to depreciation.
As Ethereum is not pegged to the dollar, its rate is growing against the background of negative news about the US economy. For example, the financial reporting season will be a great time to open short-term positions.
According to various experts, Ethereum is the coin of the future, which is likely to replace Bitcoin or become an alternative one. Most analysts and prominent cryptologists agree that the potential of the coin will be revealed only by 2025-2030.
But if you are not ready to make long-term investments, use the high volatility of the crypto market to get a stable income on Ethereum. With a relatively low price of $ 100-300 per coin and a 30-70% jump in price, the asset looks very attractive.