My advice therefore should not be taken as the opinion of an expert.
"Remember to invest only the money you are willing and able to lose"
Everyone is talking about cryptocurrencies right now, especially cryptos that have seen their prices double (or more) in the last 12 months: among them, one of the best is definitely Ethereum, up 1,826% compared to a year ago.
Ethereum is the second largest cryptocurrency after Bitcoin and, like Bitcoin, it is a decentralized digital currency, which means it does not rely on a bank or financial institution. The main difference between the two is that Ethereum expands Bitcoin's blockchain capabilities, which is why many people are increasingly seeing it as a viable long-term investment.
It must be said that if you had invested $100 in Ethereum at the beginning of the most recent wave, you would have already made huge gains, but...
Is it worth keeping that investment today?
It depends. It's certainly never a good investment if you plan to invest some money in hopes of getting rich quick because no investment is guaranteed to grow, let alone by 10 or 100 times in a short period of time.
Cryptocurrencies have shown some of the most amazing returns in recent years, but with extremely volatile prices, which is the main characteristic of cryptocurrencies. These jumps are accompanied by significant declines in value, and we can't know if these assets will stabilize and grow over the long term.
Furthermore, the idea of cryptocurrency is just over a decade old and Ethereum has been around for less than six years. If you want to invest in Ethereum now, you need to know the risks you are facing. Don't get sucked in by the great performance and market crashes of more than 10%, they are frequent events and not all investors are great at accepting that condition.
My advice
Of course if you were one of those investors who bought Ethereum at the beginning of 2020, now your portfolio will probably be much richer, but tomorrow is uncertain, so better to withdraw part of the profits by investing them in some sectors and markets in order to diversify the investment portfolio.
Cryptocurrency investing is not for everyone, and remember to invest only the money you are willing and able to lose, because no one knows what the future holds in the short or long term.
Let me know in the comments what you think of Ethereum and, why not, share with everyone your strategy, if you want!
Thanks for reading, see you next time! ??
Sources:- Images : Google Search
- Informations : internet, CoinGecko
