Bitcoin vs Ethereum

Is Bitcoin or Ethereum a better investment? This has been a hot topic of discussion in the cryptocurrency community for years. The reality is that both have pros and cons. They are very different from one another, and a solid crypto portfolio should have holdings in both coins. Both coins are some of the best cryptocurrencies to buy in 2021.

Let’s start with Bitcoin. It’s the most popular and well-established cryptocurrency on the market right now, as well as the original, which provides it with a lot of stability, at least in comparison to other coins. Don’t be mistaken, though — it’s still an extremely volatile asset. Historically, it has steadily risen in price and recovered from every major downswing. If you are new to crypto and are trying to decide on your first investment, it might be your best and most reliable choice.

Bitcoin was made with the intent of creating a decentralized currency not tied to or regulated by any goverment. Therefore, it’s definitely better than Ethereum if you’re interested in using it to purchase things. Most people nowadays simply hold Bitcoin and treat is as just another asset, though. It is also much easier to buy and sell, as it has the highest market cap of all cryptos by far. This makes it more secure in a sense, since it’s possible to get rid of your holdings almost instantly at any point.

So what are the advantages of Ethereum vs Bitcoin? First of all, it’s not meant to be exclusively used for peer-to-peer transactions. Ethereum can be used by companies to create something called smart contracts, which are basically programs stored on blockchains that execute when certain conditions are met. This makes it completely different to Bitcoin, which is one of its big advantages — the price of Ether is not that closely related to the price of Bitcoin.

The doom of many small coins is that they’re entirely reliant on the success of the idea of Bitcoin in the mainstream public, and ETH doesn’t suffer from this issue that greatly. It’s much more robust.

Other than that, the people behind Ether are working on something called Ethereum 2.0. If you do your own research and decide that they are trustworthy, it might be worth it to invest in ETH now, because if the rollout of 2.0 is successful, there could be a massive surge in price. This is, of course, entirely speculative and you’d have to shoulder a big risk for a potential big reward.

In conclusion, both are extremely volatile investments that will likely have major downswings and upswings. Since they are very different from one another, it’s a good idea to hold positions in both coins. Ether is a more speculative investment, which a great potential reward but also a higher risk. Bitcoin, on the other hand, is one of the safest crypto investments (still risky, though).

Originally published at on January 25, 2021.



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