In early November, Ether’s price hit a new all time high of over €4,000. This set investors scrambling to get their hands on the world’s second largest cryptocurrency and helped keep prices up. But why is Ether at an all time high and does this mean you should buy before you’ve missed your chance? 

Why is ETH at an all time high? 

There are usually a multitude of factors that play into the price of cryptocurrency but most experts think that Ether’s latest lift was because of an upgrade to the network. Ether, just like all other cryptocurrencies, runs on a blockchain. This is like a digital ledger for transactions that is stored across a network of computers. 

The Ethereum blockchain is where a lot of the most exciting and innovative projects happen in the cryptocurrency industry but many critics say that the Ethereum blockchain can’t handle the volume of users. 

This upgrade is the latest step towards Ethereum 2.0, an updated version of the blockchain, which will reduce costs, make the network more energy efficient and allow more transactions without the system getting clogged up. People have been talking about Ethereum 2.0 for years, so now that changes are starting to happen, some analysts are saying that the price is going up accordingly. 

These price moves are just the latest movements, with prices increasing over 1000% in the past year, and by 50% in the last 30 days alone. 

When is the right time to buy? 

When prices are skyrocketing, it’s normal to feel like you need to buy right now or else you’ll have missed your chance. Unfortunately, it’s exactly this kind of attitude that makes the majority of traders lose money on the markets. Panicking, buying or selling without referring to your own plan is a recipe for disaster. So when is the right time to buy? 

The first thing to ask yourself is why you are buying in the first place. If you aren’t sure, or your idea is to get rich quick, then you should probably hold off. Investing and trading need planning, which includes an awareness of how much you can afford to invest, as well as how much you can afford to lose. 

Wise investors know that time in the market always beats timing the market. This means that your chances of making millions of one lucky trade are very low and that wealth is created by slower and more sustainable processes. 

The easiest way to make a solid start as an investor is by investing an affordable amount every month, regardless of what the markets are doing. This is called cost averaging and these regular investments over an extended period of time can help to minimise volatility. Remember that with investing, the goal is to create wealth by selling assets for more than you paid for it. This means you need to think long term. 

It’s never too late to get started 

When you’re looking to create a significant amount of wealth, the most important thing to do isn’t to obsess over the markets, it’s to get started. 

Too many people waste precious months and years worrying about the right time to enter the markets when the real objective is to consistently invest and let your money grow through compound interest over time. The longer you give your money to accrue interest, the more wealth you can earn without lifting a finger. If given long enough, compound interest can earn much more than the value you initially invested. That’s why many people say the best time to invest was ten years ago, but the next best time is today. 

Here are a few tips to keep in mind for when the crypto prices get spicy: 

  • When it comes to trading and investing, it’s safe to assume you’re not the exception to the rule. Your odds of becoming a millionaire off one lucky purchase are pretty low. 
  • Investing in large, sporadic amounts isn’t sustainable. Most investors start small and grow their portfolio over time. Use our handy savings plan feature to invest on your own schedule. 
  • Wealth managed responsibly lasts for a long time. It’s only natural that it can take a long time to build as well. Be patient and remember to think long term.