Should you really buy this crypto now or should you wait?

During the last five years, Ethereum (ETH -5.94%) has produced a monster return of 526% (as of this writing), and is crushing S&P 500 Even Bitcoin (BTC -7.42%) in the same period. But close followers of the cryptocurrency market know that Ethereum has been hampered by an inability to scale well, resulting in exorbitant fees when demand for the network is high. This is undoubtedly in the way of the platform’s growth.

Fortunately, Ethereum developers have long been working on something called the mergerwhich will transfer the network to an environmentally friendly and scalable one proof of effort (PoS) consensus mechanism. Vitalik Buterin, one of Ethereum’s founders, has said that September 15 could be the day when the merger will happen, after which ether (ETH), the Ethereum blockchain’s native currency, could skyrocket.

So is now the right time to buy Ethereum, or should investors wait until after the merger happens? Let’s take a closer look.

The promise of the merger

Throughout its history, Ethereum, like Bitcoin, has operated on what is known as a proof of work (PoW) consensus model. This means that large amounts of energy and computing power are required to solve mathematical problems to validate and add transactions to the blockchain. This process is slow, expensive and does not allow for much transaction throughput.

As a result, the merger, an event that will connect the Beacon Chain PoS network with Ethereum’s current PoW model, is scheduled to be completed in mid-September. It should be like replacing Ethereum’s current engine with a new and improved one. While many Ethereum supporters have long waited for this to happen, there have been several delays in the implementation of The Merge. Moreover, there is no guarantee that this will lead to major changes.

In fact, according to the official Ethereum website, there are some major misconceptions floating around. In particular, transaction fees and speeds are not expected to improve, which is likely to come as a shock to most. The only thing The Merge entails is a change in the consensus mechanism, not an expansion of the network’s capacity or throughput.

Moreover, the merger is not the only change planned for the Ethereum blockchain. Over time, there will be more upgrades, called Surge, Verge, Purge and Splurge. These steps are all part of Ethereum’s evolution, Buterin argues, but they add risks that ETH token holders need to be aware of. Not only can these changes divide the community into those who support the movements and those who do not, but the possibility of faulty software can change the functioning of the entire network.

Over the past month, Ethereum’s price has skyrocketed by 58%, compared to Bitcoin’s 16%, a clear indicator that investors are optimistic about what’s to come.

Investors should enter

Ethereum’s market cap is around $225 billion, making it the world’s second most valuable cryptocurrency. It was clear that it was already a top digital asset before the merger was on the horizon. The network was the first to introduce smart contracts, a feature that adds incredible functionality to the blockchain and opens up the potential for decentralized applications (dApps), especially with decentralized finance protocols and non-fungible token marketplaces. And this innovation was certainly enough to capture the attention of investors from the beginning.

The merger is definitely a promising event in Ethereum’s history, but investors should avoid trying to trade around it. As with invest in sharesI think the right approach here is to simply use dollar cost averaging, buy small amounts over time to build a position in your portfolio. That is, of course, if you are bullish on crypto and Ethereum for the long term. It is never a good idea to try to time the market. Dollar cost averaging is a good strategy, regardless of what happens in the next month or so with the arrival of the merger.

Also, the merge has been delayed several times before, so I think it’s best to avoid waiting for arrival before buying. If you wait, you risk any gains that may be made while sitting on the sidelines. And ultimately, if we zoom out and keep our eyes on the big picture, it’s clear that Ethereum’s success (and price rise) depends on its potential to achieve wider adoption, which the merger could help accelerate.