Investment has become a necessity. The presence of additional income inspires greater confidence in the future. In a prosperous and stable time, this income gives great confidence in the future. In times of great upheaval, having savings can often save lives in the truest sense of the word.
Cryptocurrencies were supposed to become an alternative means of payment. However, while they are still moving towards this goal, they have already become a very effective investment tool.
Of course, different coins are very different in terms of investment attractiveness. In the recommendations of novice investors, coins from the TOP-10 by market capitalization are most often mentioned. They are considered the most stable and predictable.
What is Ethereum
If Bitcoin can rightly be considered the founder of the digital asset market, then Ethereum is the beginning of the era of the digital economy. This is a cryptocurrency and blockchain platform that is designed for the development and deployment of decentralized applications and smart contracts for various purposes.
With the increase in the number of users, there is a need to improve the blockchain. The team made the decision to move from the Proof-of-Work consensus mechanism to the more energy efficient and faster Proof-of-Stake mechanism. Now the platform is at the stage of implementation of the largest update in the history of its existence.
The ETH coin ranks second in terms of market capitalization. After the June price drop below $1,000, the coin is now trading above $1,500. It is too early to talk about a change in the bearish trend. analysts do not exclude that the current situation is nothing more than a correction before the fall continues.
The price of ETH is still quite dependent on the price of Bitcoin. The further behavior of the asset on the market largely depends on the implementation of the Merge update roadmap. The target date for the final transition to Proof of Stake is September 19, 2022.
Ethereum Price Prediction
Long-term forecasts Ethereum looks optimistic. Such a well-known, popular and useful project already has a sufficient margin of safety. Experts believe that it will withstand even in the event of a crypto winter. Moreover, Vitalik Buterin, the creator of Ethereum, is of the same opinion and is confident that the crisis will ultimately benefit the crypto market.
The long-term forecast from Wallet Investor suggests that by the end of 2022, the average coin price could recover to $2,300. By the end of 2023, ETH could reach $3,700. In 2027, it is quite realistic that the coin will be worth more than $8,000.
Fairly close figures appear in DigitalCoinPrice forecasts. They are quite a bit lower than those calculated in Wallet Investor.
What is USDT
Classic cryptocurrencies are very volatile. This is very good for traders, but at least inconvenient for everyday calculations. In addition, they are not secured by anything and the price of the coin is set solely due to market factors. USDT is the first stablecoin, a digital coin with a stable exchange rate backed by the USD. The USDT to USD exchange rate is constantly close to 1:1.
In the digital world, USDT is used in the same way as its fiat counterpart in the global economy. It is a universal coin for international and other payments and as a safe haven asset.
USDT is used to take profits during periods of particularly extreme market volatility. Another of its role in the auction – intermediary. You can directly convert ETH to USDT on many exchanges, for less popular and newer altcoins, such an operation is often carried out in two stages through USDT.
What is the best coin to invest in
Fundamentally, cryptocurrencies are growing. However, the young unsettled market is very sensitive to many rather non-standard factors, including information hype and private opinions of certain influential people. In addition, decentralized currencies, by definition, do not have their own calendar of recurring events. This greatly complicates the analysis and forecasting of further developments.
The golden rule of an investor is asset diversification. It is definitely not worth opposing USDT and ETHIRUM. Sooner or later, both of these coins will be in your portfolio. Ethereum – to make a profit, USDT – to minimize losses.
