<p dir="ltr">After several months of postponements and altered schedules, a significant cryptocurrency event is soon to take place. The second-largest cryptocurrency, Ethereum, is fundamentally altering how it builds and operates its system in order to become more scalable and energy-efficient.</p><p dir="ltr">The Merge is said to fully take effect on September 19, 2022, and it will have significant impacts on Ethereum tradings as well as the future of cryptocurrencies. So, how should investors get ready for this momentum? Let’s find out on <a href="https://www.builder.news/" alt="Builder News" title="Builder News" target="_blank" rel="" class="">Builder.news</a>.</p><h2>&nbsp;What is the Ethereum Merge?</h2><p dir="ltr">The Ethereum blockchain is undergoing a number of improvements to convert it from a Proof of Work (PoW) consensus mechanism to a Proof of Stake (PoS) consensus mechanism.</p><p dir="ltr">The Merge upgrade to Ethereum will alter how new cryptocurrency transactions are recorded on the blockchain. With the upgrade, Ethereum will switch to the proof-of-stake mechanism, which uses less energy and is better for the environment. It involves choosing nodes using an algorithm that favors nodes with higher amounts of a network's currency.</p><p dir="ltr">The "Beacon chain" a proof-of-stake ledger of accounts that has been adding and confirming transactions separate from those on Mainnet since its inception in December 2020. It is a key piece of the technology underlying the integration and has been put through testing, building a track record, and generally establishing itself.&nbsp;</p><h2>The Ethereum Merge: Why is it taking place?</h2><p dir="ltr">According to supporters, the switch will allow the Ethereum network to use about 99% less energy. The proof-of-stake approach utilizes much less energy than the proof-of-work model, which is what the Bitcoin network employs.&nbsp;</p><p dir="ltr">Many cryptocurrency detractors and supporters alike have focused on the detrimental environmental effects of cryptocurrency transactions, therefore Ethereum's switch to the less energy-intensive proof-of-stake is seen as a big advancement.</p><p dir="ltr">Additionally, it will lay the foundation for other elements of the network's roadmap, such as improving transaction efficiency.</p><p><em><strong>&gt;&gt;&gt; Find out more:&nbsp;</strong></em><a href="https://www.builder.news/crypto-insights/what-has-the-merge-gone-through" alt="What has The Merge gone through before officially happening?" title="What has The Merge gone through before officially happening?" target="_blank" rel="" class=""><em><strong>What has The Merge gone through before officially happening?</strong></em></a></p><h2>What does it mean for ETH holders?</h2><p dir="ltr">This modification has had a significant impact on the blockchain and how it functions, as well as on our users in both positive and negative ways. However, the website oF Ethereum states that there is nothing you need to do if you already own ETH. Numerous more technologies and digital assets are operated on the Ethereum platform. If you own any of those, your situation won't change. Ethereum only warns users to be wary of scammers who demand that they upgrade or switch to a new cryptocurrency, such as "ETH2." No such token exists.</p><p dir="ltr">If you currently run an Ethereum node or stake on the Beacon Chain, you must take particular steps to ensure a smooth transfer. If you are currently a miner, The Merge will prevent you from continuing to mine. It’s advisory to expect a lengthy stop on deposits if you trade on exchange around the time of the integration.</p><h2>What investors should pay attention to during the Merge?&nbsp;</h2><p dir="ltr">Investors may wish to take into account the following aspects, while it's hard to predict how ETH will fare after The Merge :</p><ul><li><p dir="ltr"><strong>These changes may already be factored into prices:</strong> Years of continuous attention have been paid to the merger's development. Given that investors have been considering it for some time, the price may not change significantly in any direction. But if the merger doesn't happen as planned, those investing hypotheses — and the price — will need to be revised as well.</p></li><li><p dir="ltr"><strong>New coin production will decrease.</strong> Due to the fact that mining payouts, which are greater than staking rewards, will stop, the rate at which new ETH tokens reach the market will decline by around 90%.</p></li><li><p dir="ltr"><strong>Transaction speeds and gas prices won't change</strong>. In general, Ethereum has struggled with transaction costs that are too high and congestion. According to Ethereum's website, neither of these problems will be instantly resolved by the integration.</p></li><li><p dir="ltr"><strong>A potential increase in power concentration. </strong>Ethereum is currently operated using computing power. The riches of the stakers will sustain it by staking after the amalgamation. The biggest owners, including custodians, may end up having disproportionate influence in the Ethereum ecosystem as a result, departing from the decentralized ethos that so many cryptocurrency supporters hold dear.</p></li><li><p dir="ltr"><strong>There could be a fork. </strong>If the transaction chain separates into two separate chains, each continuing with its own token, a fork has occurred. The new fork wouldn't be put on exchanges right once, but it might be following a review. What causes a fork to form? The proof-of-work chain might be continued by ETH miners, who would otherwise become obsolete following the merge.</p></li></ul><p><em><strong>&gt;&gt;&gt; Take a look at </strong></em><a href="https://www.builder.news/crypto-insights/misconceptions-about-the-merge" alt="Unveil misconceptions about the Merge" title="Unveil misconceptions about the Merge" target="_blank" rel="" class=""><em><strong>Unveil misconceptions about the Merge</strong></em></a><em><strong>.</strong></em></p><h2>How can investors benefit from The Merge?</h2><p dir="ltr">The information that follows is not intended to be financial advice, and when trading cryptocurrencies, investors should always exercise great caution. Following analysis of the provided data, the following are some possible investing approaches:</p><h3>Buying ETH</h3><p dir="ltr">There is a brief window where the quantity of ETH will continue to increase after the announcement of a reasonably firm date for "The Merge." Then it will start to become "deflationary." The price of ETH will rise if the investor thinks that ETH will play a significant role in the cryptocurrency markets and that there will be an increase in demand for it. Although there has already been some price movement, there is still a possibility for growth as there will be greater motivation to stake more ETH and keep it out of circulation.</p><h3>Buying a liquid-staked version of ETH</h3><p dir="ltr">Pools were developed to assist users in staking their ETH because the ETH transferred to the Beacon Chain staking contract is frozen for an unforeseen amount of time and the minimum quantity needed to send is rather big (at least 32 ETH). The staked ETH was subsequently turned into a tradeable ERC-721 token by certain of these pools.</p><p>For example, users can stake ETH to receive the stETH token from Lido Finance and the rETH from Rocket Pool. The user's token is created at a 1:1 ratio to ETH when they enter their site to stake it.</p><p class="prosemirror-p-center"><img src="https://lh4.googleusercontent.com/Vc9wIsAQtF64bMUuNbUGCN99AUOQ2ZECcBHPz0_ibw9E1_na_6ckgx2P4oVl50MSjni_n9_EV00P1oZNrFYIECIEqvKGA3MPvvgVKUVl3d-xMGzTZj5CGxwkF7cyk4JczfqjKCMOZ0dzAVyam3wdsxwHvgDDNy2kRI4wuBXsHdfnosnJ11toUxc3Gw" alt="Stake ETH on Lido Finance" title="Stake ETH on Lido Finance" width="624" height="411"></p><p dir="ltr">If the investor is ready to wait for the introduction of the unstaking function following the deployment of the PoS on the Ethereum Blockchain, purchasing the staked version would give him an additional 2-3% return and the accruing interest that goes along with it. Although there is no deadline for the implementation of this feature (the unstaking), it is generally expected to take 6 to 12 months after The Merge.</p><h2>Bottom line</h2><p dir="ltr">Ethereum 2.0 is big news for the cryptocurrency industry, but whether Ethereum is adopted more widely for use cases beyond just trading is what will ultimately determine whether it is worth investing in. Due to the volatile nature of the cryptocurrency market, anyone wishing to stake money on a highly speculative and highly hyped commodity should be ready to lose most, if not all, of it.</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

The Merge is said to fully take effect on September 19, 2022, and it will have significant impacts on Ethereum tradings as well as the future of cryptocurrencies. So, how should investors get ready for this momentum? Let’s find out on Builder.news.

How The Merge affects investors?