What is Ethereum, and should we HODL some
You are welcome to Eclac, fellow crypto lovers. Have you been struggling to get an answer to this all-important question: What is Ethereum? Or perhaps you have some fractions of Ethereum stored somewhere, and you want to be sure of what to do with it or be guided on whether to HODL or sell and forget about it.
Don’t worry, this article will vividly explain to you what Ethereum is all about, and by the time you finish reading this article, you will know whether you should HODL some or not. To do appropriate justice to this, I would love to explain what Ethereum is specifically all about firstly.
What is Ethereum?
In today’s world, any roundtable discussion, analysis or case study about crypto trading cannot be described as complete or comprehensive enough without a mention of Ethereum. The value of this cryptocurrency is on the rise daily, and by market capitalisation, it is the second-largest cryptocurrency after the almighty Bitcoin.
A few years ago, specifically in 2015, two programmers, Vitalik Buterin and Gavin Wood, introduced Ethereum. Many people, especially Bitcoin traders, failed to believe in its durability. It may be owned by the fact that it was seen as a revolutionary cryptocurrency.
However, some gave it a risky trial, invested and traded it, and today, Ethereum is going to the moon by the day. Crypto news is booming daily with the rise of Ethereum.
It may also interest you to know that the Ethereum platform has been built with superior functionality to permit Smart Contracts and DApps to be made and run without any interruption or interference from a third party. What a rare and commendable development!
You need to understand crypto before considering HODL Ethereum
Before we talk about maybe we should HODL some Ethereum or not, it is vital and necessary to mention that it is not too advisable for you to invest your money in something you don’t have sufficient knowledge of. This is one of the reasons for writing this article.
A deep understanding of how crypto works will help you to know and even predict when to invest or not. So, I would implore you to read on as I reveal some vital information to equip you for success in crypto trading.
Not too long ago, reports revealed that the crypto market cap was worth $300bn. In fact, in June 2020, it was worth only $260 billion. However, today, the total market cap of the whole cryptocurrency market is around $1 trillion.
I believe you can now realise that crypto is the future of this generation and the ones to come. Specifically, many will continue to benefit from this highly profitable industry if we understand its run.
Today, top companies of the world are beginning to realise the strength and worth of crypto, and they are trying to shift attention to the crypto market. Earlier this year, Tesla acquired $1.5 billion in bitcoin and released plans to accept it as a payment mode.
Not too long after this development, Tesla’s CEO Elon Musk has attributed the credit for raising the prices of crypto, and it became popular on crypto news platforms and outlets. This justifies the assertion that top companies of the world are beginning to realise the strength and worth of crypto.
More so, several papers recommend that the potential use of blockchain and cryptocurrencies will help the Caribbean countries recover from their disastrous bank abandonment. This was caused by a prevalent connection between terrorism and narcotics trafficking.
Should we HODL some?
Many may argue against this and say that because of the upward/downward variation mode of cryptocurrencies, you should not HODL, but I would say, HODL. “Hodling” has proved to be the simplest and best way to possess Ethereum today and have soon enough.
If you are familiar with crypto news, you must have heard of or seen crypto traders who make a good living through “Hodling” Ethereum. There are some reasons why you should HODL some.
1 It is still at an early stage
You might be concerned about the different upgrades going on with Ethereum, which may leave you discouraged. However, as an investor or trader, it is vital to know that every project at an early stage of development experiences different setbacks and challenges before it gains a healthy foot. Bitcoin also had the same challenges at its early stage, and it overcame them. Today, one bitcoin worth nothing less than $50,000.
2 Ethereum is going to the moon
If you are following the trend regarding the value of Ethereum, you will discover that it is going up by the day. Yes, at some point, the price will drop, and the value automatically reduces. This happens to every cryptocurrency. However, the rate at which it is increasing in value is higher than the speed of its decrease. The possibility of its value drastically going down is nearly impossible.
3 The future is bright
Undoubtedly, Ethereum has a bright future. Today, 1 Eth worth $1500, but in a few years from now, just like in Bitcoin, the value will not be the same. So, I would advise you to get and HODL some to avoid regret shortly, as many are regretting now because they failed to believe in Bitcoin when it was newly introduced a few years ago.
Ethereum is highly valuable, and its future value will be tremendous. The near future and coming generations will experience a boom in the cryptocurrency supply and circulation, especially Ethereum.
Ethereum has a huge positive and upside potential and investing in it, and HODL has excellent benefits attached to it. So, all crypto investors and traders should endeavour to HODL some. Buy and keep. The future is bright.