Tired of Being Burned by Crypto? Consider Ethereum, Crypto's Settlement Layer.

One of the first things almost every cryptocurrency investor hears is that it is a risky asset class. Unfortunately, that doesn't mean much: Risk is measured on a spectrum, and learning to evaluate it is a key part of many retail investors' journeys. If buying an exchange-traded fund (ETF) that tracks the S&P 500 is more akin to flying as a passenger in a commercial airplane, buying crypto has more in common with skydiving.That's why many crypto investors have lost money, even now as prices begin to show signs of recovery. One way to minimize crypto risk is to stick to the dynamic digital duo, Bitcoin and Ethereum (CRYPTO: ETH). Over time, both have produced big gains, though it's been a volatile ride. In this article, I'll focus on Ethereum, particularly why its role as a settlement layer gives it solid long-term potential.Ethereum is often referred to as a settlement layer because it is the base, or Layer-1 blockchain, that underpins a host of other cryptocurrencies and on-chain activities. Ethereum pioneered smart contracts, pieces of code that make blockchains programmable and enable decentralized finance (DeFi) applications, so people can, for example, borrow or lend money without a financial intermediary like a bank.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool