Cryptocurrencies have become the buzz. They have permeated and spread across every part of the world and sector of the economy. Today, many people are using cryptocurrencies to pay for items. Many businesses are embracing cryptocurrency payments, further driving the trend. Undoubtedly, cryptocurrencies will overtake fiat currency soon as a better means of payment. You can improve your trading skills by choosing the bitql app as your everyday trading platform.
With their growing popularity, thousands of cryptocurrencies have emerged to meet the demand. However, two cryptocurrencies have remained dominant in this space. Bitcoin and Ethereum are the leading cryptocurrencies in market capitalization and user base. These two cryptocurrencies have unique features, advantages, and disadvantages.
If you are a crypto investor considering which of the two most popular cryptocurrencies to buy, then you should consider some facts presented below. Before then, you can add Bitcoin trading to your investment portfolio, such platforms allow individuals and businesses to sign up and start trading Bitcoin using fiat money or altcoins.
Table of Contents
Bitcoin
Bitcoin is a digital currency launched back in 2009 by Satoshi Nakamoto. The primary purpose of Bitcoin is to provide a more secure and transparent payment system than the conventional one, whose basis is fiat currency. Bitcoin relies on blockchain technology, a distributed digital ledger with advanced security features.
Unlike fiat currency, Bitcoin is decentralized, meaning that the government, commercial banks, or other entities have no control over it. And this gives the user freedom while eliminating some costs associated with the fees charged by intermediaries. Bitcoin is also a global currency meaning that you can use it anywhere.
Ethereum
Ethereum launched in 2015 as an open-source project that is also community driven. Also, the Ethereum basis is blockchain technology. Essentially, it is a decentralized peer-to-peer network. Unlike Bitcoin’s blockchain, Ethereum has more functionality beyond supporting its cryptocurrency, Ether. It also supports smart contracts and decentralized app development.
Ethereum, the second most popular crypto after Bitcoin, doesn’t have a limit. Unlike Bitcoin, which has a cap of 21 million coins, Ethereum has no capitation. In terms of value, Ethereum has a lower value than Bitcoin. However, the value of both cryptocurrencies is volatile.
Bitcoin vs. Ethereum
Please consider several things to determine the cryptocurrency to buy between Bitcoin and Ethereum. First, what do you intend to do with cryptocurrency? You may want to use it as simply a digital currency. Others may want to invest in it as a digital asset. Either way, your intended use should guide your choice.
Second, what is the current and prospective future value of each cryptocurrency? Bitcoin is more valuable than Ethereum. And this is likely to continue considering that Bitcoin has a capitation of 21 million coins which will reduce supply and push its value higher.
Third, what is the liquidity of each cryptocurrency? While both Bitcoin and Ethereum have high liquidity, Bitcoin’s stronger brand and reputation make its liquidity better than that of Ethereum. And this means that you can sell and buy Bitcoin more quickly than you can with Ethereum.
Finally, consider some of the disadvantages of each cryptocurrency. Here, one of the main concerns is environmental pollution and climate change. Bitcoin mining consumes a lot of energy, mainly from fossil fuels that emit carbon dioxide into the atmosphere, leading to the greenhouse effect and global warming.
Final Thought
Considering all the relevant factors described above, you should probably buy Bitcoin because of its stronger brand, reputation, higher liquidity, higher value, and higher prospects in increasing importance.
