Ethereum; the second largest cryptocurrency in-terms of market cap, and perhaps the largest in-terms of use and adoption. I believe everyone should have some ETH in their portfolio, but what is the right amount? And does owning ETH have the potential to be life changing!?
Let's talk about all this and more.
I recently wrote an article talking about how much bitcoin you should own, and in this article I briefly talked about Ethereum as well. But I thought it would be fun to go more into depth on the topic, so I decided to write this article.
Many people love Ethereum, but some people aren't a fan of it as well, but whether or not you like it, it is hard to deny the innovation that is happening within the Ethereum ecosystem. While bitcoin is where value is stored, ethereum is where things are being built. You can even argue that it is ethereum that has set off the recent bull runs and not bitcoin. Back in 2016/17 with the ethereum based ICO's that were launched; you needed ethereum to be investing into the market, and to have a chance at investing in the hidden gems.
Fast forward to today, and now DeFi (Decentralized Finance) has been taking the cryptocurrency market by storm. With it feeling very similar to how I felt back during the ICO rush. In many cases, if you are wanting to invest in these new DeFi tokens, you will need to have a bag of ETH to trade for it. And there have been great gains made in this environment, and also great losses as well.
Sure, ETH has its own set of problems as well. The very badly needed ETH 2.0 update, has seen delay after delay, and could take til at least 2022 to fully rollout. Which means that we might have to deal with all of Ethereum's current short comings until then. Slow transactions, high fees, and the list goes on.
The longer that ETH continues to be delayed while having these current issues, the chance that a different blockchain could replace it continues to increase. Which is why even though I am heavily invested into Ethereum, I continue to invest in a backup plan. (Polkadot. Cardano could be applicable here as well.) Even though it has seen these delays, I still maintain high confidence that the ETH devs will deliver, finally rolling out 2.0 and making ETH the blockchain that we always hoped it could become.
Now the question that everyone wants to know. How much Ethereum should you own!?
Well as always with investing, the answer for that is different for each and every person. What may be right for you, may not be right for me. We all have different circumstances. But if you know anything about me, it is that I am in the cryptocurrency markets for the capital gains. My goal is to make large enough profits, to retire within the next 10 years and then live out the rest of my life however I desire. Hopefully on a beach somewhere in paradise.
With Ethereum 2.0 comes the ability to stake ETH to receive a passive income. You need 32 ETH to fully stake on your own without the need of a 3rd party to do so. It has often been believed that owning 32 Ethereum could be life changing. Equaling owning 1 full bitcoin. Some of the biggest ethereum fans believe that just by owning 32 eth, and then staking that eth in the future could earn you enough money to act as your full-time job, or be a substantial side job. While I'm not sure if that will happen, I believe 32 ETH is the number we should all strive towards, and this could be very life changing for many people.
ETH GOAL = 32 ETH My Personal Goal = 120 ETH
As I mentioned in previous articles, the funny thing is that once you reach your personal crypto portfolio goals, I tend to not be satisfied and decide to increase my own goals. Wanting to increase my chances at having that dream early retirement of mine. So while my original goal was to have 32 ETH, I have since increased my personal goal to 120 ETH. Just as it goes with having money, or investing; once your portfolio or amount of money begins to grow, it then becomes much easier to increase your own wealth. The same goes for ethereum as well. While I always keep some of my ethereum in cold storage ledger. I also invest a substantial amount in lending opportunities, and other markets that help me grow my eth at a faster rate.
So I want to know, what do you think about Ethereum? How much Ethereum do you want to own?
As always, thank you for reading!
Awesome article