Ethereum merge: What should the users do?
- Ethereum merge will likely happen in a few days as the deadline draws nearer.
- The transition will bring multiple changes to the Ethereum ecosystem.
- The users are confused about what to do as there are many rumors.
Ethereum merge is one of the mega events of the crypto world as it will change one of the largest ecosystems, i.e., Ethereum. The transition of the said ecosystem from Proof of Work to Proof of Stake will reduce its energy consumption and dependence on a large number of computers.
As this change will make it easier for Ethereum to manage transactions and other features, it might also have some negative impacts. One of these is the end of miners, as almost all of them will become useless after the merge. Others might include an impact on wallets and the personal holdings of the users, but there is little chance of it happening.
Here is a brief overview of the possible changes due to the Ethereum merge and the steps that the users can take.
ETH merge and the possible changes
Ethereum merge will bring with it several changes. As said above, it will change the mode of operation from mining to staking. The validators of transactions will be reduced, and thus the energy use will be reduced by more than 95%. Also, the transaction fees, etc., will be reduced due to the reduced effort required.
The first step of the merge of Bellatrix was completed successfully on 6 September, while the second step Paris, is expected to be complete next week. The recent few weeks saw big fluctuations in Ethereum and Ethereum Classic value. The changes were due to the speculations about growth and the possible utilities. The recent few days have seen a decline in Ethereum value, and merge can be the possible reason for it.
Some experts predict that Ethereum will take flight and its price will increase tremendously post-merge. While others claim that the Ethereum merge will bring down its prices. Different claims regarding the Ethereum merge have created confusion for investors. Ethereum management has assured that the merge will enhance the network’s security, sustainability, and scalability.
Steps that the users can take
The most frequent question ahead of the Ethereum merge from users is ‘what should I do?’. There is a possibility of risk as well as the sound transition of Ethereum so the users can utilize different strategies for their safety. The safest of the available options is to do nothing and wait for the completion of the transition process. As the users have nothing to do with the merge, they don’t need to be prepared for it.
Some fraudsters might lure users into downloading some software, but it can be a scam. They will try to steal users’ assets and money using these software. If the users have assets in CEXs, they need to withdraw their funds before it is too late. They should try to stay out of CeFi, as the centralized exchanges will put an end to withdrawals before the merge, and then they won’t be able to access their funds.
The most important step is depositing assets in mainnet DeFi. The users should try to minimize the risks by depositing ETH for liquidity which is a much safer option. Staked ETH might face major volatility in the coming days, so those who have long-term investments should monitor the market. Those who have long-term plans for their investments are SAFU. Coinbase users should be careful as there are chances of fluctuations.
Ethereum merge is likely to happen in a few days, creating confusion amongst users. Many users are unsure about what to do. According to analysts, the best thing to do is do nothing and wait for the transition. While other possible strategies can be liquidity and monitoring funds so that they can take steps before something untoward happens. There is little chance of unruly happenings, but users still need to be careful.