Invest in Ethereum – is the ETH investment still worthwhile in 2022?

John James
October 4, 2021
If you want to invest in Ethereum in 2021, you have various options. An ETH investment can be classic, with direct investments in the Ether Token, or in a complex way via mining or CFD trading.
Invest in Ethereum – is the ETH investment still worthwhile in 2021

If you want to invest in Ethereum in 2021, you have various options.

An ETH investment can be classic, with direct investments in the Ether Token, or in a complex way via mining or CFD trading. We have dealt with the pros and cons of an Ethereum investment.

With the smart contracts, which enable the conclusion of contracts between users of the blockchain and serve their fully automated enforcement, Ethereum opened up a technology to the world in 2015 that conquered the Securedbrokers at lightning speed.

According to Coinmarketcap, the cryptocurrency Ethereum (ETH) ranks second among the largest digital currencies worldwide in market capitalisation. Their market capitalisation is around 13 billion euros.

Table of Contents

The best crypto brokers and exchanges for Ethereum investment

Rating

Min. Deposit

Min. Spread

Assets

Views

Positive Reviews

Negative Reviews

Likes

4.9/5
250
0.07
  • Commodities
  • Forex 40 +
  • Metals
  • Stocks
  • Indices
  • Cryptocurrencies
85
2
4.5/5
250
0.07
  • Metals
  • Forex
  • Indices
  • Cryptocurrencies
  • Commodities
  • Stocks

 

254
82
3
58
4.9/5
250
0.07
  • Forex 40+
  • Metals
  • Commodities
  • Stocks
  • Indices
  • Cryptocurrencies

 

480
80
3
50

Ethereum investing for beginners in 3 steps:

 

We now show how to simply invest in Ethereum. We use Capixal for this, as you can invest both real cryptocurrencies and CFDs here – Capixal combines the advantages of a broker and a crypto exchange.

First step: Register with Capixal

First, we have to register with Capixal. We click on the link to register for Capixal:

In the registration form we enter username, email and password and accept the terms and conditions:

We then receive an email for verification in which we click on the link to confirm our account.

Second step: top up your account

In the next step, we have to make our deposit to invest in Ethereum. To do this, we click on the “Deposit money ” button at Capixal :

Then we select the amount and the method of payment with which we would like to deposit, and then click on the “Send” button to deposit the amount.

Invest in Ethereum with PayPal, Sofortüberweisung and more

In our example, we show the investment with a credit card. However, Capixal also offers other deposit options :

Payment optionpossible?
Invest in Ethereum with a credit card✔️
Invest in Ethereum with PayPal✔️
Invest in Ethereum with Skrill✔️
Invest in Ethereum with a wire transfer✔️
Investing Ethereum with Neteller✔️
Invest in Ethereum with UnionPay✔️

Third step: invest in Ethereum

As soon as we have funded our account, we can invest in Ethereum. To do this, we click into the search field above and enter “Ethereum” there.

Then we click on the “Trade” button:

The purchase window then opens:

  1. Buy or sell: In our case, we have to select “Buy”
  2. Trade or orders: Here we can choose whether we want to execute the trade immediately (trade) or with a delay (order).
  3. Amount: How much Ethereum do we want to invest
  4. Stop Loss and Take Profit: At what loss or profit our position should be automatically sold.
  5. Leverage: What leverage do we want to use to invest in Ethereum. With lever X1 we buy real Ethereum, with lever X2 we buy leveraged Ethereum CFDs.

After we have configured all options, we click on the ” Open Trade ” button to complete the investment.

Ethereum’s investment is complete!

Pros & Cons Ethereum Investment

What speaks for and against investing in Ethereum in 2021 is easily outlined: Risks and opportunities for Ethereum investors go hand in hand. They vary depending on which type of investment and which Ethereum investment strategy you choose.

  • Promising cryptocurrency
  • Decentralized, digital currency that ignores the middleman (financial institutions and banks)
  • Very large market cap and spread
  • The very strong and respected development team
  • Smart contract technology
  • Development environment for decentralized applications (dApps)
  • Technological restrictions, for example in terms of scalability
  • High volatility: performance is subject to extreme fluctuations
  • Smart contract developers can currently only use Ethereum’s own programming language Solidity
  • So far, extreme power consumption through mining with PoW (a change to PoS is already planned)

How can I invest in Ethereum in 2021?

Invest in Ethereum

Whether you succeed in earning euros in Ethereum with your investment depends on whether you find the right investment strategy for you – and generally familiarize yourself with the market.

How can I invest in Ethereum? Which form of ether investing suits me? What are Ethereum stocks? And how do you even get Ethereum? The following sections clarify this.

Buy Ethereum directly

How do you even get Ethereum? You can buy Ethereum on many different crypto exchanges. So that you don’t get lost in the jungle of offers, the editors of Securedbrokers have tested the best exchanges for you and will guide you through the process quickly and easily with an Ethereum investing guide.

How can I invest in Ethereum? Where can I pay Ethereum in euros? You can find out that and more in our Ethereum investing guide.

Many exchanges require your own Bitcoin wallet when buying Ethereum. With others, you can conveniently manage and keep your purchased Ethereum in your stock exchange account.

Due to the associated risk, we generally advise Ethereum investors to get their own Etherum wallet. Because if your wallet goes bust, you end up doing the damage. You can find everything about the Ethereum wallet in our Ethereum investing guide.

Keep in mind that when you invest in Ethereum in 2021, you will be completely dependent on price movements when you buy Ethereum.

The tax regulations for ether investing are also relevant for you in any case.  We have more information about this ready for you on our overview page for cryptocurrency investments.

Trade Ethereum

Investing in Ethereum doesn’t have to mean buying Ethereum. If you don’t want to buy Ethereum directly, but still earn money with Ethereum, you can trade it, for example.

To do this, you can contact one of the many crypto brokers who have derivative options for crypto traders with their CFDs. Here we have checked exchanges and brokers for you.

The advantage of trading with CFDs is obvious: With CFDs, you can often achieve high returns here, regardless of the Ethereum price, if you predict the price behaviour correctly. In addition, you do not need an Ethereum wallet – because you do not buy the coin yourself.

CFD trading, however, harbours special risks and requires that you deal with this type of investment in detail in order not to make a mistake: Otherwise, you could lose your Ethereum investment completely within a single trade.

Therefore, when you start trading CFDs, you should initially only make small contributions. Above we took you to step by step through investing in Ethereum with Capixal. In the Ethereum Investing Guide linked in the previous section, we also go through the procedure.

Buy Ethereum stocks

As with buying Ethereum, your investment is also subject to the Ethereum price when buying Ethereum shares. Perhaps the decisive advantage of share trading is its tradition: share trading is clearly regulated internationally.

In addition, many investors should find it easier to invest in stocks than to buy cryptocurrencies directly. Because having to create your own wallet and understand what a private key is and how best to store it scares many off. D and so the equity trading Ethereum get more people to access to the market.

This means that investing in Ethereum in 2021 will be easier than ever before: If you are planning your investment in the medium to long term, you should urgently take a closer look at this investment option for the Ethereum investor.

The first blockchain stocks already exist today, and you have to choose between them. There are, for example, Bitcoin mining stocks, blockchain services and Ethereum investment trusts. Follow the link for an overview of the options for buying stocks online.

Ethereum mining

The so-called miners are also an essential element of survival for the Ethereum network. Because through their work, new blocks are created on the Ethereum blockchain.

With each new block, the transactions recorded on the previous block are confirmed and committed. If no one were to mine Ethereum anymore, transaction confirmations would no longer be possible and the cryptocurrency would no longer be tradable.

To prevent this from happening, cryptocurrencies such as Ethereum rely on incentives for miners and reward them for their work. For each new block, the miners receive Ethereum on the one hand. On the other hand, they still receive all transaction fees that are incurred on the new block for new transactions.

Proof of Work (PoW)

The miners have to decide on cryptographic algorithms in the PoW and use hardware components such as GPUs for this. PoW stands for ” Proof of Work “, this is a special mining process that many cryptocurrencies use based on the bitcoin model. So does Ethereum.

The decryption difficulty with PoW varies depending on the network load. If the algorithm has been successfully decrypted, a new block is created. The network then checks whether this actually exists and validates the information written on it.

Due to the enormous energetic expenditure associated with mining, the PoW process has long been the subject of criticism. Ethereum has been planning for years to replace the PoW process with the PoS process (“Proof of Stake”), which is much less energetic.

Ethereum Falling: Is It Too Late To Invest In Ethereum?

The Ethereum price rose rapidly in the past two years. Before the big crypto hype of winter 2017/2018, Ethereum’s price had already risen by a thousand percent. In January 2018, during the hype, the coin reached a market value of up to 1,200 euros per ether.

The big crash followed. Ethereum has been falling in value and is now at around 115 euros per coin, its lowest level since May 2017. But if Ethereum falls – is that a good chance for investors? Or is it too late to invest in Ethereum in 2021?

There can be no simple answer to these questions. In the following, we want to approach them systematically by illuminating various positions and looking at which ether investing options are now available and their advantages and disadvantages.

When does the Ethereum price rise?

Invest in Ethereum

 The Ethereum price could fall even further – much further. It is already below the value that the coin reached before the hype.

A lack of acceptance and regulations that clearly locate cryptocurrencies in the financial world is still affecting the new technologies with difficulty. As a result, quite a few believe that the market will continue to collapse – and ether investing is no longer worthwhile.

Others are convinced that the Ethereum course will break new records in the future because Ethereum is a widespread technology. In addition, many crypto start-ups use Ethereum’s ERC20 standard to launch their own cryptocurrencies.

With this standard and the ERC20 token, a separate Ethereum market was created in the market, which is still flourishing despite numerous competing products.

The Ethereum development is far from over. The Ethereum Foundation, which leads the Ethereum development, has repeatedly proven in the past that it is capable of running a globally operating company and enriching and diversifying the business world with new ideas.

Understandably, many are unsettled after the Bitcoin bubble burst. Nonetheless, blockchain technologies will likely change the way we trade with one another in the medium term.

In particular, the smart contracts, which are an innovation from Ethereum, gave rise to the conviction that the new technology market will probably still hold many surprises in store.

The acceptance of Ethereum is increasing

Invest in Ethereum

Even if the market is currently in crisis, the many positive signals of the past weeks and months speak for themselves: The acceptance of cryptocurrencies such as Ethereum is increasing.

Regulators around the world are increasingly addressing the issue. New investment options such as Ethereum stocks are opening up the market to a wider audience.

The high-risk ICOs are increasingly being replaced by the so-called STOs, which lure investors, for example, with shares in business profits and a big plus in security.

With a market capitalization of around 12 billion euros, Ethereum still has a stable user and investor base that temporarily secures the continued existence of the cryptocurrency.

With this in mind, the question is not so much whether there is a future for cryptocurrencies. Rather: For which ones? And when? Ethereum is well established in the market. There is little reason to assume that this will change in the near future.

As a development platform, in particular, Ethereum now plays an important role for those companies that finance their apps via STOs. Ethereum is no longer just a cryptocurrency but has created its own Ethereum Market. It probably won’t break away that easily.

Volatility: When the dip is followed by an increase and the increase is followed by the next dip

Today it is the other way around: There has been no talk of records for a long time, one reads more often about scepticism, warnings or exaggerated future scenarios, only a few invest.

Those who go against these trends can often benefit from them. It is conceivable that now when the scepticism is greatest, the time is right for an Ethereum investment.

However, nobody can predict this correctly. Investors should not rely on reports. But investors are also often deceived by their own gut instinct. You exit an investment too early or invest too late and at too high prices in a market that is about to correct.

Is it a good time to invest in either?

As paradoxical as it sounds: Above all, the great scepticism of the present gives cause for hope that a current investment can pay off properly – at least in the long term.

Anyone who invests now may be one of those who will profit from the next big hype – provided they interpret the signs correctly and get out again while everyone else is investing excitedly.

So much for the theory. The advantages of blockchain technology are numerous and you probably already know: Ethereum is a largely decentralized, digital currency that ignores the middleman (financial institutions such as banks) and enables people all over the world to develop dApps based on the Ethereum ERC20 standard.

Because investments are also possible without a bank account, people who do not have one are given the opportunity to participate in an investor market for the first time.

At the same time, the Ethereum Blockchain can hardly be manipulated by a hack due to its technical architecture. At least that is as good as impossible with the currently available technical means.

Ethereum Investing Tips & Tricks

Our Ethereum Investment Tips should help you to become a good Ethereum investor. Perhaps they will help save you from rookie mistakes. First and foremost, we recommend that you only invest as much as you can bear to lose.

This will help you to be able to make neutral and tactical decisions and save you from suffering losses that can become a problem for you.

Either way, investing in Ethereum is extremely risky. Don’t underestimate this risk. Before investing in Ethereum 2021, you should definitely be aware of this.

It is therefore wise not only to invest in Ethereum, but also to look for classic, less risky forms of investment such as stocks, and to diversify your investment portfolio further.

“What type of Ethereum investor am I?”

Ask yourself how big your risk tolerance is and whether you want to invest in Ethereum in the long term or in the short term. If you want to make big profits in the short term, CFD trading is an attractive investment option – but it comes with additional risk.

For those who are not so willing to take risks, a medium to long-term investment in Ethereum is probably better suited. In addition, those who keep their ethers for at least a year do not have to deduct any taxes on the realization of their profits.

But the Ethereum Market has many alternatives ready: Ethereum stocks are also interesting for more cautious types of investors if they want to benefit from the Ethereum development, but do not want to deal with wallets or private keys.

Earning money with Ethereum: numerous possibilities

Invest in Ethereum

There are now many different ways to earn money with Ethereum. Investing in Ethereum 2021 is possible, for example, through Ethereum Investment Trusts, but also through Banking on Ethereum.

Alternatively, you can trade Ethereum derivatives – or simply buy Ethereum cryptocurrency Ether directly.

Anyone who buys Ethereum or invests in Ethereum stocks, their investment in Ethereum develops exclusively depending on the market price. The situation is different with the derivatives trading with Ethereum with crypto brokers such as our test winner:

Here you can still earn with Ethereum even if Ethereum falls. Because when trading CFDs, you are speculating directly on the price behaviour of Ethereum without purchasing the cryptocurrency yourself.

How can I invest in Ethereum? That cleared up the previous sections.

Is an Ethereum wallet compulsory?

If you buy Ethereum for your investment based on the price development of Ethereum, then you can leave your investment on crypto exchanges like Capixal instead of using a wallet.

Our tip: create your own wallet anyway! Because your wallet protects you from unpredictable dangers. If you keep your ethers on an exchange and the exchange goes bankrupt or is hacked, you may lose your investment.

It’s smart not to invest in just one form. Do not limit yourself to an Ethereum investment alone. It is better to hold several plants. At least five assets is a good goal. Those who travel on multiple tracks reduce their investment risk. For example, you could buy stocks online.

Conclusion

Investing in Ethereum in 2021 – it’s probably still worth it. Anyone who does not buy Ethereum but trades makes themselves to a certain extent independent of the price developments.

But even those who buy Ethereum can, in view of the positive signals, hope that the cryptocurrency will recover from its low, at least in the medium to long term.

Cryptocurrencies will one day find their way into our everyday lives in one form or another. The Ethereum development is in good hands and is progressing. It is hardly conceivable today that cryptocurrencies such as Bitcoin or Ethereum will no longer play a role tomorrow.

It is more difficult to assess which of the cryptocurrencies will win the race in the coming years. In a high-tech segment like this, innovation can bring about change in a flash.

That is why ether investing when buying Ethereum is anything but a safe investment in the long term – but it is also a great opportunity. If you are looking for security, you should diversify your investments and not rely on cryptocurrencies alone.

4.9
4.9/5

Our recommendation: Trading at Investby

Our recommendation: Trading at Investby

  • The broker provides an Islamic Account
  • It provides a dedicated account manager
  • Receive customised investment news
  • Trade with a variety of assets
  • There’s no deposit limit
ABinvesting Review
4.5
4.5/5

Our recommendation: Trading at ABInvesting

  • Acknowledge the financial markets through education material 
  • Free VPS is available 
  • Get a swap discount of 50 per cent 
  • Islamic Account is available to traders 
  • Select account types of your interest
4.9
4.9/5

Our recommendation: Trading at PrimeFin

  • Fifth decimal available 
  • Spreads begin from 0.03 pips
  • Commission is zero  
  • Full 10-hour support  
  • News alerts and VPS for traders

FAQs

Due to the high volatility of the coins, an investment in cryptocurrencies can still generate great returns. It is crucial that you buy the coin of your choice at the right time. You should also have the necessary knowledge of how cryptocurrencies work in detail. All information for this is made available on Securedbrokers.com

There is no easy answer to that. Many factors play a role, including whether the acceptance of the chosen currency is increasing, what is the purchasing power of investors and whether crypto exchange hacks or other bad news can depress the respective price. Ethereum is one of the largest cryptocurrencies, so you have a good chance of decent returns with the coin.

You can either buy the coin of your choice directly and hope for price gains, or invest indirectly in the cryptocurrency. This includes trading via CFDs, stocks, derivatives and many more. The mining of coins is also still enjoying some popularity.

Absolutely. If you assume that coins will continue to gain in importance in the future, then you should invest in Ethereum. It is not unlikely that more and more transactions will be carried out using digital coins in the medium term.

Get a Callback

A trusted broker will contact you today.

Name(Required)