After a long struggle in 2022, this year could be promising for ETH, and this year is commencing on a more positive approach for the virtual digital asset market. As a result, most virtual digital assets are witnessing their prices improve, and ETH has been changing hands by more than 34% since the start of the year.
This uptrend is promising; however, it remains uncertain how long it will maintain the rally] particularly when several economists are still anticipating a recession.
Crypto assets, in a nutshell, are a highly risky investment because it’s still uncertain. Even the professionals cannot argue for certain whether it will penetrate over the long term, and there is always a probability that the whole sector may not endure.
That aside, ETH is among the strongest virtual digital asset field performers. It’s the second largest after Bitcoin and the most common blockchain for several decentralized applications, from decentralized finance initiatives to NFT marketplaces to metaverse utilizations.
Without a doubt, ETH is still struggling with short exchange times and high fuel costs and is not perfect; however, the ETH community has various developments in the pipeline that will improve the blockchain, which is certain for investors and traders.
The Purchasing Case
Virtual digital assets should be perceived as something other than a get-rich-quick project but can make you a lot of money with time. For instance, even though ETH’s price has dropped more than 66% from its highest level in late 2021, ETH surged up roughly 115% over the past half-decade and a drastic 54,000% since its launch in 2015.
On the other hand, if you had capitalized just half a decade ago, you would have doubled your investment by now, and that is regardless of the crypto winter over the previous year. Whether ETH will witness those types of rewards again is unpredictable.
Since its price is still meaningfully low from its all-time highs, now could be a perfect time to purchase at a discount. Even if ETH does not witness earth-shattering rewards, getting even closer to its high again would lead to substantial profits.
When to Avoid Capitalizing on Digital Assets
Regardless of its advantage and probability of growth, ETH is not for everyone, and there are several motives you might want to evade for it now. For instance, it remains a high-risk initiative. The virtual digital asset alleged nature indicates there’s always a probability that you would lose funds. If that is your key concern, there may be better alternatives than this capitalization.
Only capitalize if you can afford to abandon your funds in the market for the calculable future. The previous year has indicated that virtual digital assets can be tremendously volatile in the short term. If the value drops again and you must pull out your funds, you could liquidate your capital at a steep loss.
Eventually, ensure you maintain a long-term outlook when capitalizing on crypto. Meanwhile, it’s likely to earn substantial rewards in months or weeks, and it is more likely to witness positive total rewards by being invested for many years. There is no perfect way to generate more funds within a night, and if you attempt to accumulate more wealth and get rich quicker with crypto assets, you might be disappointed.