Ethereum's Wild Ride
The price of Ethereum has doubled from $1,800 last July to $3,500 today.
Throughout this newsletter, I have been preaching to readers that price appreciation will be higher in Ether than it is in Bitcoin.
Ethereum simply has better technology and is a better bet in the long run and sadly for Bitcoin, they are further along in their maturation cycle therefore the explosive up moves are confined by the law of large numbers.
It was simply almost a given that Ethereum would go from $1,000 to $3,500 and it’s really only a matter of time until they break $5,000 and then $10,000.
This is the second most popular cryptocurrency and although not a great store of value yet like Bitcoin, its fan base is growing by the day.
Here are a few answers for Ether fanatics from typical Ether questions.
Crypto investors always need more fine-tuning and know-how about cryptocurrency.
ETH is a great buy-the-dip opportunity for crypto diehards, and I believe there is clear sailing until $10,000.
Frequently Asked Ethereum Questions
Where's the best place to buy ETH?
There are many centralized exchanges that support Ethereum. If you live in the US, the most frequented exchanges are Coinbase, Gemini, and Kraken. Coinbase users can use Coinbase Pro for lower fees.
When is Eth2 launching?
Eth2 is a marketing term used to represent a number of updates to Ethereum. The Eth2 proof-of-stake chain was first launched in December 2020. "The Merge", which is the event that will fully switch Ethereum's consensus to proof-of-stake, is estimated to be ready in early 2022, although there is no exact timeline. Other updates, such as data shards, will follow that update.
Do I need to do anything to update to Eth2? Will Eth2 create a new token?
No, ETH holders never need to take any action to keep holding ETH. Ethereum users will be unaffected by the Eth2 upgrade. And the Eth2 updates will not create any new tokens.
How can I stake my ETH?
There are two ways that you can stake your ETH: by either running your own validator or providing your ETH to a staking pool.
Running your own validator requires a modern computer and 32 ETH.
Staking pools accept any amount of ETH. I recommend Lido or StakeWise.
Why are Ethereum transaction fees so high?
Like most blockchains, Ethereum fees are determined by supply and demand. The large demand to use Ethereum has pushed transaction fees quite high (however, fees were just a few cents only 2 years ago). Fees are especially high during market volatility, and during NFT drops.
What is being done to lower Ethereum transaction fees?
Ethereum fees are reduced by using layer-2 rollups. Rollups are scaling solutions that allow for significantly cheaper transactions, while still maintaining Ethereum's security.
Additionally, Eth2's data shards will make rollups even cheaper.
While rollups are cutting-edge technology being actively developed, a number of them are already live on the Ethereum mainnet.
What's the best wallet for Ethereum?
The most popular tool for using decentralized applications is Metamask. However, for security reasons, I recommend using a hardware wallet such as a Trezor or Ledger.
