If you are new to the Crypto frenzy the first question you are faced with is; where do I put my money?? For most, the answer is simple. Yes Bitcoin (BTC) is set to reach heights of U$ 500,000 and some say U$ 1 Million in 10 years. If you don’t have U$ 30,000 to invest now and want to make sure you make some serious money I would suggest Ethereum (ETH).
From the research I’ve done, this is where the market is heading. Let’s assume you have U$ 1,500 which you want to invest. At BTC at U$ 29,000 (during the time of this post) and ETH at U$ 1,100, it will give you the following ROI for your investment.
| Price prediction ETH | $ 1,100 | $ 5,000 | $ 30,000 |
| ETH purchased at $1,100 | 1.363 ETH | $ 6,818.18 | $ 40,909.09 |
| Price prediction BTC | $ 29,000 | $ 50,000 | $ 150,000 |
| BTC investment at $1,500 | 0.051 BTC | $ 2,586.20 | $ 7,758.62 |
Based on the above, if you are investing small amounts and looking to have a decent earning ETH seems a viable option. You can also cross trade to increase your value and swap coins to keep increasing your portfolio. One such way is to trade cryptocurrencies via contracts for difference (CFDs), which are offered by most online trading platforms. CFDs are derivative products, which means that their value depends on the value of the underlying assets – in this case, cryptocurrency. One of the key benefits of trading is that you can still make profits even if the prices fall, which is impossible to do if you simply purchase coins and hold it in your wallet. Thus, with CFDs, you can either hold a long position, speculating that the price will rise, or a short position, speculating that the price will fall. This is a skill you won’t regret learning, as the future of your money is entirely up to you in crypto.
Let’s look at the growth of ETH in 2020
Find more statistics at Statista
Ethereum enjoyed an impressive bull run over the past few months. Its price has risen nearly 370%, from a low of $307 in early 2020, to a new all-time high of over $1,440 in recent days. I strongly believe that with institutional investors now playing the BTC game, it is time for us to move to Ethereum, as it is currently the second most popular coin. The other reason I am confident is due to the mass exodus of ETH from exchanges which dropped by 27% mid Jan 2021, with analysts predicting ETH could soon hit a new all-time high price. According to CryptoQuant, only 8.1 million ETH is currently available in the reserves of various cryptocurrency exchanges. The decline in Ether reserves in exhanges indicates that more people are holding onto it, rather than selling or transacting. At prices dancing in the ranges of U$ 1,200s, this is a good entry price to get in and hold on tight to your ETH, for it is only a matter of time until institutional investors move to ETH.
Will Crypto perform the same way as it did in 2017 for BTC and 2018 for ETH? Short answer, NO. Why won’t it though?
2017’s price surge in Bitcoin and other cryptocurrencies was driven largely by speculation. Bitcoin volatility is significantly lower today than in 2017. Most of the experts agree that the key difference now is the large investment being made into BTC by institutional investors during 2020.
Greyscale Investments claims to have purchased U$251 million worth of BTC per week in Q4 of 2020 which surpassed the daily amount of BTC mined.
The increased crypto acceptance by traditional fund managers and financial institutions, is making the rally much more sustainable. Ease of investing is the other key factor. There are more mainstream exchanges and wallets which can secure your funds now. The entry of PayPal, Square’s CashApp, Robinhood, and the presence of other widely used fin-tech platforms will further ensure the long-term price rally for cryptocurrency.
5th April 2021 –
I decided to add the Hype Cycle chart which will help to understand the present market of Q2 2021. Everyone predicted a parabolic growth and a crash by September but I don’t think it will happen. I stand to be corrected though. I feel all ALT Coins will move sideways with a consistent growth rather than parabolic.
