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analyst75

Why We Love Ethereum

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We have written extensively about what makes Ethereum a great investment, so here’s the quick summary for those who are new to crypto:

 

Ethereum is the second-largest crypto behind bitcoin. This gives it tremendous market power, resiliency, and trust.
 

Ethereum is the #1 smart contract platform in the world. I think of it like an operating system that runs crypto apps: like the Windows or MacOS of crypto.
 

Ethereum has a huge community. More investors -> more developers -> more apps -> more users, and the flywheel keeps turning. This will likely accelerate post-ETF.
 

Ethereum has a huge competitive moat. Because of its leading position, it is unlikely to be toppled from its top spot anytime soon (though many L1 crypto competitors are trying).
 

Ethereum has a track record of innovation. Ethereum keeps pulling off major upgrades (the massive move to Proof of Stake in 2022 was a huge technological feat, as but one example).
 

Ethereum is energy efficient. Since its move to PoS, its energy use dropped by an astonishing 99%. Today Ethereum consumes less than 0.01% of the energy of bitcoin.
 

Ethereum is fully decentralized. Unlike most other crypto investments, no one person controls the network. That is a massive advantage in determining its future legality.
 

Ethereum has an unofficial leader. At the same time, co-founder Vitalik Buterin is one of the most thoughtful and hard-working leaders in crypto, providing wise guidance and inspiration.
 

Ethereum has a vision and a plan. Unlike bitcoin, Ethereum knows what it wants to be when it grows up.
 

Ethereum has been approved by regulators. The SEC has approved an ETF, a huge stamp of approval that should put all worries to bed: ETH is now really and truly 100% legal.
 

When you’ve got a hot tech stock that’s about to IPO, ordinary investors like us can almost never buy the stock before the public offering. That’s reserved for the company founders and big VC funds.

 

I’d argue that we are in a unique situation, where ordinary investors can buy into Ethereum, before it becomes “available” to the general public. It’s a situation very much like the bitcoin and gold ETFs.

 

We don’t know if history will repeat itself. But, as you may have heard, history often rhymes.

 

Timing the Investment

Longtime readers know that we’re not big on timing investments.

 

Our approach remains the same: buy and hold quality crypto assets, making monthly investments regardless of price, and hold for five or more years. (Read more on our approach here.)

 

But let’s just say if you’re going to set up such an investment plan, now might be a really good time to do it.

 

And you really, really might want to include Ethereum. Because the Ethereum ETF is coming, and ETH is coming to the masses.

 

You can be there first.


Don’t Buy the Fear

 

After many cycles in crypto, I’ve learned two things:

 

You can eliminate most of your fear with “Vitamin DCA.”

Buy the hate instead.

Instead of trying to time the market, consider dollar cost averaging (DCA).

 

As you probably know…

 

DCA involves investing a fixed amount at regular intervals, regardless of the price.

 

This method helps mitigate the impact of volatility by spreading out your purchases over time.

 

For example, instead of investing $1,200 all at once, you could invest $100 each month. This way, you buy at both highs and lows, averaging out you investment cost.

 

If you’re investing in altcoins, all you do is DCA into Bitcoin or Ethereum (or stablecoins) and then use that to buy altcoins.

 

Not only does DCA simplify your investment strategy, but it also helps manage emotional decisions.

 

Here’s the best part:

 

Many exchanges like Coinbase and Binance offer automatic DCA programs. You can set it up to invest weekly or monthly, making the process hassle-free.

 

That’s step one.

 

If you want to supercharge your DCA strategy:

 

Buy the Hate Instead

 

Buy the stuff that makes people at the dinner party roll their eyes.

 

When you see almost everyone hating on an asset, treating it as dead…

 

It might be time to explore.

 

Hatred is often the most bullish indicator an asset can possibly have.

(There are obvious caveats to this.)

 

This, of course, applies outside of crypto.

 

In the 1990s, Apple was a has-been. During the dot-com bust, Amazon was for two-bit idiots. In its early years, Tesla was comical. In the early 2000s, McDonald’s was dysfunctional. During the 2018 crypto bust, Nvidia was an OBVIOUS gutter gamble.

 

The list goes on.

 

The beauty of buying hated assets is you don’t have to buy a lot. If they’re truly hated, they’re massive asymmetrical bets.

 

Buy just enough to forget about it.” – Chris C, AltucherConfidential

Profits from free accurate cryptos signals: https://www.predictmag.com/ 

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