Comparing Ethereum And Bitcoin For Beginner Crypto Investors
Now you have done your research and understood your risks. It’s now time to pick your coins.
Experts in financial services say it is a smart idea to start with Ethereum and Bitcoin. Although Ethereum and Bitcoin have both recently reached new highs, don’t mistake this for a sign that there won’t be more volatility in the future.
Although Ethereum and Bitcoin are the largest cryptocurrencies in terms of market cap and exchange volume respectively, they are very different once you consider the differences in their popularity. Both can be great choices for beginners in crypto, but it may take some reflection on your goals to determine which one is best for you.
Bitcoin:
Bitcoin is the first cryptocurrency and is also known as digital gold. Although bitcoin is the most valued crypto currency on the market, it can also be volatile. In recent months, one coin’s value has fluctuated between less than $30,000 and more than $60,000 Many investors still see Bitcoin as an investment that has value and can be used to protect against inflation.
Bitcoin investing is different from investing in the stock markets, which offer more predictable returns like index funds. However, it can be compared to investing in gold, art, or other alternative assets, such as horses or art. Because there is a finite supply of Bitcoin. A company can issue more stock options but there will never be 21 million bitcoins.
People buy Bitcoin for the same reasons they would own diamonds, $100 bills or gold coins in safes. Bitcoin will continue to have a distinct value, even if the dollar’s value plummets.
Ethereum:
Ethereum is not digital gold. Ethereum is a platform that lets developers build crypto-oriented apps. Developers must purchase and pay fees in Ethereum’s native digital currency, Ethereum ether, to use Ethereum.
Ethereum investors are betting by buying and storing them in Ethereum Wallet for future usage and security. This means they’ll need to buy ether to cover the fees. The higher ether’s value, the more people will buy it.
There are many applications with Ethereum Wallet to keep ether safe and secure with encrypted passcodes that are hard to bypass.
Experts have suggested that investing in Ethereum is similar to investing in a tech company, even though it’s not as direct as Bitcoin or gold.
Do I Buy Ethereum Or Bitcoin?
Both Bitcoin and Ethereum have similar risks, and their potential growth is highly speculative. Experts agree that both Bitcoin and Ethereum are great options for anyone just starting their crypto investment journey. Others say that it is a good idea to invest in both.
In the coming months, an update to Ethereum’s network could draw more attention to Ethereum. Experts also acknowledges the potential for both cryptocurrencies. They are still very early in the adoption curve, and believe both Bitcoin and Ethereum will hold their value. Many experts says that Bitcoin is considered the mainstream, and Ethereum the more useful.