What is Enjin Coin and Is it a Good Investment?
Cryptocurrency trading has made a lot of news this year, especially after Elon Musk tweeted about buying Dogecoin, but there are many different cryptos available like Enjin Coin. While bitcoin and Dogecoin have made their share of millionaires, not every cryptocurrency is as well received. Some are highly valuable while others are worthless, though that can always change in the blink of an eye. What is Enjin Coin, and is it a good investment?
Enjin Coin (ENJ)
Enjin Coin is a blockchain cryptocurrency uniquely aimed at gamers. In 2017, the Singapore-based Enjin company launched this currency as an ERC-20 compatible token. What that means is that you can send and receive ENJ with an Etherium wallet. However, far more interesting is what ENJ is getting spent on. Most cryptocurrencies are usable, just as you would use a coin or paper cash to purchase something. Some, like Dogecoin, don’t have particular built-in uses. However, ENJ has unique usability that is part of how the coin works. Gamers can use ENJ to buy NFT’s in various games. NFT’s or non-fungible tokens are used to purchase digital-only content. This can include virtually any available digital asset for gamers that can mean powerups, additional skins, DLC, and other typically game-specific digital items. Although that may not seem extremely useful on the surface to non-gamers, there is a thriving community of mature, semi-pro, and professional gamers who use these assets daily.
Some digital gaming items are usable for more than one game. In these cases, it’s likely to span some or all the games created by a particular company. The Verge recently reported that Dom Hofmann, creator of Byte and Peach, and one of Vine’s founders, is working on blockchain NFT video games. Hofmann’s games will be NFTs, running on virtual firmware. Underestimating the value of gaming is a folly. In its early days, video games were seen as a new toy and a fad that would surely pass. Now the industry rakes in billions every year, hosts numerous professional player leagues and competitions, and shows no signs of slowing down or stopping. A crypto coin that exists solely to purchase relevant digital items in games seems less frivolous in that light. Moreover, it seems almost inevitable. Blockchain currency exists as a semi-NFT itself because it is both a token and entirely digital.
How Do You Invest In Enjin Coin
To buy any cryptocurrency, you must subscribe to a trading platform that supports it. Currently, Coinbase, Binance, and Kracken all allow you to buy and sell ENJ. Signup is relatively straightforward. You will need an email address, and you’ll have to confirm your identity and give your address for tax reasons. Making your purchase is very similar to buying any regular stock. You have to fund your account, then select the crypto you want, in this case, ENJ, and input the amount you plan to spend on it, review your trade and push the buy button. A small charge for the service is standard. There are often secondary ways to make a purchase. For example, some platforms offer a feature that allows you to buy directly with your bank account. Meanwhile, others may allow you to purchase cryptocurrency with other cryptocurrencies. Having a crypto wallet is not necessary, but it is smart. Cryptocurrency exchanges are high-priority hacking targets, and they get hit often. There are two types of wallets. Benzinga points out that a simple software wallet is free to download, and they give you much better protection than crypto exchanges. If you prefer, you can upgrade that security and buy a physical hardware wallet. These are devices that hold your funds offline, which means there’s no way to steal them digitally. Even a physical theft would be difficult because the thief cannot simply ‘break’ the lock as you might with a padlock or door.
Is Enjin Coin A Wise Investment?
Enjin Coin is new on the market, which makes it a difficult prediction. However, a lot is going for this particular blockchain technology. It currently serves around a quarter-million gamers, which is impressive for a currency less than a year old. Naturally, you should always do your due diligence and make decisions based on your budget and best interests. That said, the prognosis for ENJ is promising in the long run. Currently, it’s looking bullish, decidedly trending upward. Conservative estimates often cite this currency at a five-dollar valuation by the end of 2025. If it trends down, ENJ could be sitting low around a dollar and six cents by the end of 2021. Coin Quora says ENJ could go as high as $3.5-4.5 by the end of next year. If that’s the case, then the current prices, which are hovering at just over half that much, would be a worthy investment. However, things would need a miraculous change for ENJ to make overnight millionaires. So where does that leave it? Enjin Coin is likely to be a solid buy if it can keep up its bullish tendencies, even if the fans aren’t massive. You may want to consider ENJ as a buy-and-hold for the long run. Day traders aren’t as likely to be impressed by the returns, but the tech has a lot of potential and a sizeable following that seems unlikely to get smaller. Though that isn’t always a good indicator of how much the stock will be worth in the future, being popular and widely used in the target community is a decent jumping-off point.
Final Thoughts
Enjin coin’s unique, inbuilt usability makes it an intriguing prospect. While it’s still new on the market, at the moment, it is hard to avoid noticing how brilliant the company strategy is. Doubtless, ENJ will find a home in the perpetually expanding digital game and NFT landscape. Crypto is here to stay and tends to trend upward over time despite a lot of volatility. Additionally, while blockchain tech isn’t precisely new, it’s fair to say it’s still in its infancy with a lot of room for growth potential. If you’re planning to invest in Enjin, consider a long-term buy-and-hold strategy.
