Ethereum is no stranger to market turbulence, either. While this recent price drop may be extreme, it’s not the worst this cryptocurrency has seen; back in 2018, Ethereum’s price plummeted by nearly 95% over the course of the year.
If you’re going to invest in Ethereum (or any cryptocurrency), make sure you have the stomach for this type of volatility. It’s highly likely that there will be more crashes like this in the future, and there’s also a chance Ethereum won’t succeed at all over the long run. Cryptocurrency is still highly speculative, so whether it’s still around in 10 or 20 years is anyone’s guess right now.
Is Ethereum the right investment for you?
It’s also important to do your research to make sure you’re investing in the best cryptocurrency for you. Ethereum does have plenty of advantages, and it is one of the stronger players in the crypto space.
The Ethereum blockchain is not only home to its native token, Ether, but it’s also used for a variety of other purposes. Developers can build “smart contracts” on the blockchain, which allow people to safely and easily transfer money, property, or any other items of value without a middleman like a lawyer.
The Ethereum blockchain is also the foundation for non-fungible tokens (NFTs) and decentralized finance, giving it an advantage outside of the cryptocurrency space.