Ether can be one of the most popular cryptocurrency, next to bitcoin. Ethereum price is influenced by many factors such as demands, market fluctuation and the like. But, before you get too excited and start investing your hard earned money here, it is important that you know the advantages and disadvantages of this project and how your country governs blockchain. Different countries have different ways of handling cryptocurrencies and blockchains, hence it is highly recommended that investors should seek advice from a certified broker in their area before they make any investment.
Just so you know, Ethereum is not a cryptocurrency but a full package service. Ether is their cryptocurrency while Ethereum is the platform. Moving on, before someone gets into this platform, below are some advantages and disadvantages you need to know about it.
There are many reasons why investors would go for the ethereum and to name them, read below:
- Transaction here, unlike other cryptocurrencies, do not require third parties. Hence, with this, users or investors must not worry about any complex transactions. All transactions on ETH are straightforward and without hassles
- It is not a self lock system, meaning it can grow together with other goods and services. And with this benefit, many investors see the potential on ETH to grow continuously
- Compared to other cryptocurrencies, ETH is a well planned and delivered project. Investors are given the opportunity to see the future of this cryptocurrency 3 to 5 years from today. This vision can help investors determine whether investing in it is a good idea or not at all
- The transaction fee in ETH is far cheaper than any other cryptocurrencies. Hence, people will not have a hard time deciding whether to pursue a transaction or not because of the additional fees
- ETH garners huge support from medium businesses up to large corporations. And with this, investors feel safe as they invest their money in it. They know that the movement and development of the project is being organized well by those who know how to make an industry progress
- Even how good a cryptocurrency may be, there are some drawbacks you need to watch out for. Sure, it is still an investment, hence you know that there is a chance you might lose money:
- ETH has too many platforms. As you know Bitcoin only has one functionality, compared to ETH where it covers full package service
- For this project to advance to the next level, this blockchain will change from proof of work to stake, switching system is not easy and if it fails to execute smoothly, the entire system might crash
- It has limited tutorials available for new comers. Sure, everyone who wants to engage in an investment must know everything about the process. This blockchain offers very minimal tutorials to investors. This being the case, some will gamble in this currency without any idea where will it bring them
Now that you know the benefits and drawbacks of Etherum, it is all up to you whether you will invest here or not anymore.