No competition: My best crypto to buy now

As cryptocurrencies fall to new lows, investing can be a daunting time. No one knows for sure when the market will bottom out or how long it may take to recover, and there are no guarantees that crypto will recover at all.

That said, investing is one of the best times of the year. Prices are lower than they have been for several months, making it one of the most affordable options to buy. Also, if prices eventually rise, you can afford to make a lot of money by investing now.

However, choosing the right investment is the key. While there are never any guarantees that any cryptocurrency will succeed over time, there is one I am working on right now: Ethereum (ETH 12.96%).

Can Ethereum be a lucrative investment?

Ethereum’s greatest strength is the blockchain network and its ability to host decentralized applications (dApps). These dApps range from non-fungible token (NFT) marketplaces to decentralized finance projects (DeFi) to metaverse applications.

If any of these sites see growth over time, Ethereum will benefit from it. Because Ethereum is the most popular network for dApps, it has the greatest potential for growth if NFTs, DeFi or the meta-verse succeed.

At the moment, Ethereum is the second most popular cryptocurrency behind Bitcoin, with a market value of around $ 135 billion. For context, Solana and Cardano – two of Ethereum’s biggest competitors – have market values ​​of approximately $ 12 billion and $ 14 billion, respectively.

Where Ethereum falls short

Although Ethereum is the largest and strongest decentralized network, it also has its flaws – first and foremost when it comes to speed.

Right now, Ethereum can only handle around 14 transactions per second. Not only does it limit the number of transactions on the network, but it also creates extremely high transaction costs for users. As a result, many users and developers have flocked to smaller, faster networks like Solana.

The good news is that Ethereum developers are working on an update to resolve this issue. This upgrade will move Ethereum from a proof of work (PoW) protocol to a proof of stake system (PoS), which can help the network reach speeds of up to 100,000 transactions per second.

Exactly when the update will be completed is unclear. So far, the rollout has been plagued by delays. The final phase of the update, called “The Merge”, should take place sometime in 2022, and the final phase is scheduled for 2023 or 2024.

While Ethereum’s upgrade is a positive feature for the network, anything can happen between now and when it’s completed. Newer cryptocurrencies are evolving every day, and there is a lot of time for competitors to gain a foothold in the market.

Is Ethereum a good investment?

Despite the imperfections, Ethereum is one of the stronger cryptocurrencies out there. It is also heavily discounted right now, with the price down about 77% from the peak in November. If you have been waiting for a chance to invest, this may be your chance now.

Before you buy, however, consider your risk tolerance. There is no guarantee that Ethereum (or any other cryptocurrency) will thrive over time, so there is always a chance that you may lose your investment. Make sure you only invest money you can comfortably afford to lose.

Although no one knows what the future holds for crypto, Ethereum may have what it takes to stay long-term. If you are willing to take more risks for the chance to see potentially lucrative returns, this may be the right investment for you.