By now, everyone has heard about Bitcoin. Thanks to the 2017 boom, even tech outsiders have got some knowledge of Bitcoin and what it does. However, the crypto well runs much deeper than Bitcoin. When you scroll through the list of major altcoins that can do everything Bitcoin does and, in some cases, do certain things in a better way. Ethereum is one of those blockchains and, today, it stands as the second most valuable crypto on the planet.
Ethereum Has a Solid Technological Base
Created by Vitalik Buterin, Ethereum is a platform on which decentralized applications can operate. Although the architecture of the blockchain is different to that of Bitcoin, the overall premise is the same. Indeed, if you read the white paper on Ethereum, you’ll see it described as a decentralized platform for applications that run exactly as programmed without any chance of fraud, censorship or third-party interference. With hundreds of third-party applications now running on the blockchain, the price of Ethereum has soared since it launched in 2015.
Today, Ethereum’s coin ETH is the second most valuable cryptocurrency in the world. With a 24-hour trading volume of more than $1 billion, the savvy crypto investor knows that it’s always a good idea to buy Ethereum. However, as with any investment, timing and reasoning are crucial when it comes to investing. Before you look to buy ETH, you should always do your research. Reading through the latest crypto headlines to see what the general consensus is. For example, back in July, Elon Musk fell victim to Ethereum scam bots on Twitter. Using a form of social engineering, hackers were able to dupe Musk’s followers into clicking scam links offering Ethereum rewards.
Learn to Buy on the Dip
Off the back of this, the general public’s desire to buy Ethereum dipped and that sent its price on a downward spiral. However, what’s important to appreciate here is that bad news is also good news. When a negative headlines hits, price charts often tumble. In the immediate aftermath, that makes it a bad time to invest. However, if you give things time to settle, you can then buy on the dip. In other words, you can invest at a time when the price is low but capable of rebounding. The beauty of Ethereum is that it’s a strong project and the technology is likely to be around for a long time. Therefore, any short-term dips are likely to be overturned in the long-run.
Perhaps the greatest skill you can acquire is to buy Ethereum when its price is low. When the Musk incident broke on Twitter, the smart investors waited for a few days for the price to fall before buying. Because they knew the negativity would quickly subside, they were happy to wait for a good price and ride the wave back up. So, if you’re a looking for the best time to buy Ethereum, look for some negative (but not too negative) headlines and wait for the dip.