Ethereum Merge: 3 strategies for investing. Investors have laid out their strategy to make gains on the new Ethereum merger. To counter the high volatility of cryptocurrencies, there are different methods.
If Ethereum Merge seems off to a good start, the project may not go as planned. Depending on your level of optimism, you can invest differently in different situations.
The transition from the “Proof Of Work” system to “Proof of Stake” is about to be completed. It will take place from September 15 to 16. In the meantime, here are all the ways to generate money through this merger by investing.
1. Hodl ETH: the all-in to capitalize on the “hardforck” of the expected token
The first method is the simplest and assumes that the transition will be done according to the rules of the art. Here, we simply buy Ethereum (ETH) on the exchanges. We then keep the tokens in the wallet hoping for an added value in the months or years to come.
Although simple, this method had already proven itself with Bitcoin in 2017. When Bitcoin gave birth to Bitcoin Cash, holders of the token also received an equal amount of BCH. At the peak of the market for these BCHs in 2021, they were bought for an amount of $800.
2. Long ETH: a more measured investment with short futures
If you are unsure about the new Ethereum project, it is possible for you to minimize the risk. It is not necessarily stupid not to throw oneself headlong into fusion. The crypto market is facing a crisis of confidence.
The recent events that took place on Bitcoin, which lost a large part of its value in a year, or in Celsius, show us the volatility of the market. In view of all that has happened, it is normal to be somewhat anxious at the idea of investing your capital in this kind of announcement.
If you are one of these people, it is possible for you to go into a short future. They allow you to bet down on Ethereum. Putting some of your capital into these options can compensate for the bad performance of “The Merge” on Ethereum.
This method is effective in minimizing the risks. With this type of investing, investors can sleep easily without the stress of a sudden rug pull.
3. Stablecoins and trend trading
You may not want to follow the ETH meltdown closely, and that's not a bad thing! Some investors choose to invest according to trends by making short trades. Their main position, however, remains based on coins that are not very volatile. They are thus a good security base that allows them to invest in riskier tokens.
According to some, “The Merge” is simply a fashion effect and they intend to surf on it. It is possible that the hype will die down when the project is released. We can then expect a significant “dump” of the value of Ethereum 2.0.
But The Merge is a project that is destined to last over time. It must give credibility to Ethereum and make it gain in value over time. If you really believe in Ethereum, nothing prevents you from trading it on its temporary trend and then reinvesting in it over the longer term.
With all the possible investment possibilities for Ethereum, you have plenty to do!
What will The Merge change for Ethereum?
The Merge's mission is to promote exchanges by reducing transaction costs. With this change, Ethereum will be less energy-intensive in addition to being more secure.
This transition is necessary for the crypto to compete with newcomers. The PoW system becomes obsolete and cannot compete with PoS. With this change, investors are hoping for a rise in the value of ETH in the months or even days to come.
The merger will take place in just under a month and all tests are green for the moment. Something to give a boost of optimism in a bearish crypto context. But there are still different ways to approach The Merge as an investor.
How to buy Ethereum 2.0?
To invest in Ethereum Transition, all you need to hold is the base ETH token. The merger will happen on its own when the time is right.
To buy, there are two ways to do it:
- Via decentralized exchange platforms: you can go to platforms like Coinbase, Binance, or Etoro to trade ETH. Registration will ask you to verify your identity and confirm a card or bank account.
- Via a wallet: you can also initially hold your ETH on a crypto wallet like MetaMask or TrustWallet. The creation of a wallet is very fast and will be done in a few minutes.
READ MORE: What will The Merge change for Ethereum?
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