Investors have outlined their plan for profiting from the recent Ethereum merger. There are several ways to deal with cryptocurrency’ extreme volatility. Even if Ethereum Merge appears to be off to a strong start, things might not go as to plan. You can invest in various scenarios differently depending on your level of optimism.
About to be finished is the changeover from the “Proof of Work” method to “Proof of Stake.” It will occur on September 15 and 16. Here are all the options to make money during this merger by investing in the interim.
1. Hodl ETH: going all-in to profit from the anticipated token’s “hardforck”
The first approach is the simplest and presupposes that the transition will be carried out in accordance with accepted standards. In this case, we merely purchase Ethereum (ETH) on exchanges. Then, we hold the tokens in our wallet in the anticipation of a future increase in value.
Despite being straightforward, this approach had already shown itself with Bitcoin in 2017. Holders of the token also received an equivalent amount of BCH when Bitcoin gave birth to Bitcoin Cash. They were purchased for a sum of $800 during the height of the market for these BCHs in 2021.
2. Long ETH: a more cautious investment with near-term futures
You can reduce the danger if you have questions regarding the new Ethereum project. Not diving into fusion headfirst is not necessarily dumb. A confidence crisis is affecting the cryptocurrency market. The recent events on Bitcoin, which lost a significant portion of its value in a year, or on Celsius demonstrate the market’s turbulence. It is understandable to feel a little uneasy about the prospect of spending your money in this type of statement in light of everything that has happened.
It is possible for you to invest in short futures if you fall under this category. You are able to lay off Ethereum using them. If “The Merge” on Ethereum doesn’t perform well, you can make up for it by investing some of your money in these options. The dangers can be reduced effectively using this approach. Investors don’t have to worry about a sudden rug pull with this form of investing.
3. Trend trading and stablecoins
It’s okay if you don’t want to pay careful attention to the ETH crisis! Some investors decide to trade short in order to invest in line with trends. However, they continue to base their main position on stable coins. They provide a solid security foundation, enabling them to invest in riskier coins.
Some people believe “The Merge” is just a passing trend, and they plan to ride it. It’s probable that after the project is released, the hype will fade. After that, we can anticipate a large “drop” in the price of Ethereum 2.0.
The Merge, however, is a project that will stand the test of time. It must establish Ethereum’s legitimacy and increase its value over time. Nothing precludes you from trading Ethereum on its short-term trend and then reinvesting in it over the long run if you truly believe in it.
You have a ton lot do given all the Ethereum investment opportunities!
What will The Merge change for Ethereum?
The Merge’s goal is to encourage exchanges by cutting down on transaction fees. With this modification, Ethereum will be both more secure and less energy-intensive.
To compete with newcomers, the cryptocurrency must go through this shift. PoW systems become outdated and are unable to compete with PoS. With this modification, investors are anticipating an increase in the price of ETH in the upcoming weeks or even days.
All tests are now passing, and the merger will take place in less than a month. Something to inspire hope in a bearish crypto environment. However, there are still other approaches that an investor might take with The Merge.