Yes, you should consider buying the most popular smart contract enabled cryptocurrency, Ethereum (ETH), right now.
Just remember that as we've explained higher inside this Ethereum guide, you’re not actually buying Ethereum, you’re buying the network’s native currency called Ether (ETH).
After buying ETH, you can then use it to interact with all of the decentralised applications (dApps) that are built on top of the Ethereum network itself.
Things like defi platforms, games and even decentralised exchanges to buy other cryptocurrencies without the need for a middle man.
All Ethereum based dApps require ETH to pay the gas fees needed to use the network.
So if you’re looking for a cryptocurrency that you can actually put to use in a plethora of exciting ways rather than a simple store of value or unit of exchange, then you should buy ETH.
Buying Ethereum or Bitcoin
Since its release, Ethereum has been competing with Bitcoin for the title of being the biggest cryptocurrency by market capitalisation.
As such, there’s always going to be some sort of comparison made between whether you should buy Ethereum or Bitcoin.
In the latest 2021 bull run, we’ve actually seen Ethereum close the gap on Bitcoin, shown best on the following ETH/BTC daily chart:
ETH/BTC Daily:
As we’re talking about buying ETH right now, we definitely subscribe to the old trading saying of ”the trend is your friend”.
As the Ethereum network continues to see more and more dApps built on top of it, it’s only natural that demand for ETH will grow alongside it and that’s exactly what we’re seeing happening now.
But when it comes to which is the better buy right now, our opinion is that it doesn’t really matter.
This is because both Ethereum and Bitcoin are blockchains that are here for the long term, each solving different use cases.
As a result, we’re likely to see both endure the test of time including whatever rollercoaster market cycles we’re likely to see in the future.
Ethereum to 5K?
So in terms of buying Ethereum, let's cut to the chase.
All anyone really wants to know following this little market wide correction, is when will Ethereum reach 5k in US dollar terms.
Big round numbers like this attract human beings, because well... we're simple creatures with simple minds.
Check out the following Ethereum daily chart.
ETH/USD Daily:
All we've done here is marked the psychological 000 levels all the way up.
Do you notice how price respects the levels as both support and resistance, simply dependent on which direction price approaches from.
There's no denying that psychological levels work and in some ways act as a magnet to suck the dumb money in.
Institutional money knows where to find liquidity and most often that's around big, juicy round numbers.
For this reason, it’s probably not a matter of if, but when will Ethereum reach 5K.
How to buy Ethereum (ETH)
As the second largest cryptocurrency by market cap, buying ETH is a relatively simple process.
You are able to buy ETH on pretty much every single crypto exchange out there, including the major exchanges we always recommend in Binance and Bittrex.
Let’s go over a few simple steps on how to buy ETH below.
Choose your favourite crypto exchange.
Deposit the fiat or cryptocurrency of your choice.
Select buy ETH either directly or via the ETH/USD trading pair.
Transfer your ETH off the exchange and into your own wallet.
As you can see, buying ETH is simple and by following step 4, you’re able to either safely keep your ETH in cold storage, or in a MetaMask wallet to interact with Ethereum based dApps at your leisure.
Best of probabilities to you.
Direct from the desk of Dane Williams.
Why not leave a comment and share your thoughts on whether you should buy Ethereum now, within the comments section below? All comments that add something to the discussion will be upvoted.
This Ethereum blog is exclusive to leofinance.io.