Cryptocurrencies have gained massive recognition in recent years, and they appeal to many investors due to the novelty of the technology and its potential to revolutionize traditional finance. But not everyone supports crypto investments, and that has to do with their high volatility, as many deem them unstable and, thus, not a worthwhile investment. And while it’s true that digital assets experience high price fluctuations, it’s essential to remember that there’s no such thing as a risk-free investment. Suppose you aren’t willing to take any risks at all; in that case, investing may not be suitable for you. If, on the other hand, you aren’t faint-hearted and want to start trading, it’s essential to choose a relatively stable cryptocurrency, such as Ethereum.

It is a top cryptocurrency along with Bitcoin and the fuel behind the Ethereum blockchain network – an innovative technology changing the Internet through its decentralized nature. You can buy ethereum with a credit card on a crypto exchange and take advantage of the opportunities in the market – according to estimates, ETH price could hit $2,500, making it a solid investment for your portfolio. Obviously, a potential price increase isn’t the only reason why Ethereum is a great asset that deserves a place in your portfolio – there are more, and we’ll take a look at them below.

Blockchain

Ethereum and blockchain are interrelated concepts, and that’s because Ethereum offers different services through blockchain technology – which is a unique feature that other cryptocurrencies lack. Unlike traditional mediums, every action in the blockchain is secure. Ethereum uses a decentralized ledger that runs smart contracts, achieving verifiable consensus. This means that the network can trade and secure anything.

Sure, Ethereum may be known as a profitable digital coin, but in reality, it’s more than that, namely an excellent development that can transform many industries and, thus, the world itself.

NFTs

NFTs are a hot topic in the cryptocurrency industry, with many projects using the Ethereum protocol in their favor. Put simply, NFTs represent ownership of an item, enabling the tokenization of collectibles, art, real estate, etc. Non-fungible tokens provide many benefits; for instance, they allow artists and sports stars to connect with fans and access a global market. However, NFTs also play a crucial role in investing. For instance, they enable real estate tokenisation – more specifically, a property is parceled into different sections with unique characteristics (one section can be on a lakeside, and the other can be close to the forest).

In this case, NFTs are used to represent all pieces of land, each of them being priced differently. Through non-fungible tokens, real estate trading (a complex affair) is simplified by including relevant metadata into a singular NFT associated with the corresponding property section.  

DApps

The technologies on the Ethereum blockchain are truly innovative, such as DApps – an open-source software distributed on a P2P network. What makes them unique is that they are decentralized, which means no third party can control them. This further ensures the data isn’t misused and doesn’t get into the wrong hands. In other words, DApps do an excellent job when it comes to safeguarding user privacy.

They are resistant to censorship, eliminating the worry that you could be banned, as it happens with other applications. This often occurs due to a weakness in the algorithm and not because you did something, which can be truly irritating. From this point of view, DApps are more reliable. In fact, they have even been recommended as excellent alternatives to common social media platforms, offering advantages like lack of speech suppression, and increased anonymity.

Relevance in the market

Ethereum holds a vital position in the market, making it an authentic crypto giant. Its reputation reassures traders that they will likely see more revenues than losses once they decide to invest in ETH. The popularity of this digital asset also has a lot to do with its massive potential, as DeFi and NFTs are two incredible projects that have attracted even crypto skeptics in the industry, turning them into devoted investors.

Ethereum has incredible intrinsic value due to its smart contract capability, PoS model, speed, and scalability. Plus, it will likely become even more reliable as a cryptocurrency, given that its developers are concentrating their efforts towards improving it. All these aspects make Ethereum a great addition to an investment portfolio. However, when beginning your trading journey, it’s essential to pick the right crypto exchange and always stay up-to-date with Ethereum’s price changes. Since it fluctuates a lot, keeping a close eye on the digital asset will help you determine when you should buy or sell it.

Gaming

Ethereum has also entered the gaming and VR worlds, allowing you to secure digital items. With blockchain technology, everything in a virtual environment can be tokenized to create ownership, including wearables, avatars, and buildings. Obviously, you can also use it to complete an in-game transaction if the design allows it.

Blockchain technology has been revolutionizing many industries in recent years, and gaming is one of them. Due to its secure and transparent nature, blockchain boosts users’ confidence by eliminating the risk of fraud in transaction records. Similarly, in gaming, it gives reassurance to players that their sensitive data remains safe. Moreover, blockchain contributes to a better gaming experience, giving users more control, as they can create their own storylines and characters. In the games, players can earn a reward each time they complete a mission or quest. Unlike those in traditional games, the rewards in blockchain-based games also have value in the real world, as they can be used to purchase items from players or e-commerce websites.

The bottom line

Some people would never add Ethereum (or any other cryptocurrency) to their investment portfolio, and that’s because of its speculative nature. And there’s really nothing wrong with it; after all, cryptocurrencies aren’t and shouldn’t be for everyone. However, Ethereum is an excellent addition to an investment portfolio for those interested in these assets due to its long-term benefits and significant revenue levels. If you don’t shy away from risks, Ethereum could provide substantial rewards.