Ethereum’s struggle for the second spot has recently been a real nail-biter for all those who once invested in it.
Throughout October alone, Ethereum has managed to sink 17% from $226 to $188, and then rebound 15% in a matter of days. At press time, the ETH/USD price remains capped below $210, with no clear signs of recovery. This fuels concerns among investors about the future of the coin and the viability of the project itself.
But is it really all gloom and doom for Ethereum? And why is it in the first ranks then?
The ups and downs of Ethereum
Ethereum came to life in 2015, introducing an absolutely new approach to cryptocurrency and blockchain. It emerged as a response to the limited functionality of Bitcoin that was used only as a peer-to-peer payment system. Instead, Ethereum focused on extending the range of blockchain applications beyond digital currencies and added smart contracts support. Since then Ethereum has been the go-to platform for creating decentralized apps powered by self-executing contracts. The stats show that Ethereum’s DApps enjoy over 10,000 active users who make 66,000 transactions to them daily. The platform’s popularity is obvious, so why has its native token been struggling to maintain the value lately?
The answer is simple. The cryptocurrency industry is young and unpredictable; it can be affected by multiple factors which are unlikely to dent the mature markets. Shortly after the record-high December gains, all major tokens experienced a hefty hit that wiped millions of dollars off of their market caps.
Surprisingly enough, ETH was not the worst-performing asset of those days.
However, it wasn’t the first time when the Ethereum market found itself in the doldrums. Let’s look at the major ups and downs of Ethereum throughout its short life.
- March 2017 – Ethereum starts its bull run. Till March 2017, Ethereum had been trading in a relatively narrow range of $10-$15. Spring 2017 saw ETH skyrocketing to unbelievable heights of $200+, representing 2,000% growth. Many believed this bull run was triggered by the interest of enterprises in Ethereum’s technology.
- From sweet June to bitter July – Ethereum loses half its value. In mid-June 2017, the ETH/USD price surged to over $400, which was twice the value detected the previous month. However, this didn’t last long. By July 10, Ethereum had dropped back down to $200. As experts say, this movement was caused by numerous ICOs cashing out their ETH.
- The bumpy August-September ride. At the end of August 2017, ETH finally peaked and reached $350 again, maintaining this value throughout a few following weeks. In mid-September, the community was startled at the news about China banning ICOs. As a result, Ethereum slumped to the $200-ish range.
- December 2017-January 2018 – To the moon. If you had been monitoring the cryptocurrency market for several months so far, you might have had your eyes glued on the charts in early January when virtually every coin was breaking its price records. Ethereum wasn’t left out in the ‘red’ as well, it skyrocketed to over $1,300.
All cryptocurrencies are volatile; they tend to go through peaks and valleys on their way to the top spot. Ethereum is no different, and whether it is doomed to fail eventually is anyone’s guess. The one thing is certain though – Ethereum has strong fundamentals. And as the upgrades like Constantinople, Casper, and sharding go live, Ethereum’s reputation of the most advanced blockchain can be enhanced. This is likely the reason why investors are still buying Ether.
What is the best place to buy Ethereum?
Although there are loads of cryptocurrency exchanges and trading platforms that can help you enter the Ether market, choosing one that will be fit for various purposes is tough. Some websites will allow you to engage in trading, others will offer broker services only, and still others will be limited to the use of cryptocurrencies and provide for no fiat payments. The good news is that there are a few platforms that do combine all the features both beginners and seasoned traders will benefit from. CEX.IO (the official page is https://cex.io/) belongs to one of them.
What makes CEX.IO unique?
First and foremost, CEX.IO is an established cryptocurrency exchange that has been around for over 5 years already. It covers most of the globe and caters for the needs of 2.6 million crypto enthusiasts. The best thing about CEX.IO is that it allows users to buy Ethereum in two ways – either via trading or through a direct purchase at a pre-set rate. Let’s look into both methods.
Suppose that you have already managed to create and verify your account at CEX.IO, and you are now trying to buy your first Ether. Before using one of the methods, you should make a deposit in any fiat currency supported for ETH pairing. At CEX.IO you can buy Ethereum with USD, EUR, and GBP. The deposits are made via a bank transfer or a credit card issued by VISA or Mastercard. Now you are all set, so it’s time for purchases.
Method 1 – trading. Go to the TRADE tab, where you can check all the available buy/sell transactions happening on the CEX.IO market in real time. Navigate to the Buy BTC box – here you will place a buy order at the most favourable rate. Choose the rate, define the amount of ETH you are trying to get and click Place Order. Usually, the order is processed within seconds.
Method 2 – instant purchasing. Find the BUY/SELL section on the website – it will provide you with pre-set offers for buying Ethereum. All you need is to choose the one that best suits your budget (i.e. $200, $500, $1,000) and click BUY. However, you can also set a custom amount of money you are willing to spend on ETH. In this case, the system will automatically display the number of coins you are going to get at the current exchange rate.
Conclusion
Being so volatile and shaky, any cryptocurrency is still a risky investment – no matter how established it is in the industry. If you want to get involved in the space, make sure you understand the underlying principles of the market and learn to recognize the trends. Never rely on a third-party opinion as the only person who will suffer from possible losses is you.