By this point, you’ve encountered the word cryptocurrency. In a nutshell, it’s virtual money that is an extremely volatile investment.
Bitcoin is the first, most famous, and most valuable cryptocurrency available. Fluctuations in Bitcoin’s price often affect the rest of the crypto market.
However, there is also another notable cryptocurrency called Ethereum. This crypto is the second largest crypto available to investors.
If you don’t have too much experience with cryptocurrency, you may be wondering what’s the difference between Bitcoin and Ethereum. Here’s what you need to know about these two unique types of crypto.
The Main Difference Between Bitcoin and Ethereum
Both of these virtual coins are the products of blockchain technology. The main appeal of cryptocurrency is that it isn’t regulated. This makes the crypto world the Wild West of finance.
Cryptocurrencies have values attached to them largely based on how many coins are available. Generally speaking, less volume equates to more value. Bitcoin’s main draw is that it was the first successful virtual currency free from the control of financial and governmental control.
While just about all cryptocurrencies share this distinction, this is where Bitcoin and Ethereum stop being similar.
Ethereum doubles as a currency and powers the blockchain network where people go about buying Ethereum. Ethereum powers the transactions on its proprietary blockchain network, which affords it greater utility.
Which One Should You Invest In?
The first thing you need to know is that what’s best for you may not be what’s best for someone else. The best investment choice will depend on what you want out of your cryptocurrency.
If you want a stable investment with longevity, Bitcoin is an excellent choice. Since it’s the first successful crypto, it is a reliable option with proven growth.
Now is also a good time to consider investing in Bitcoin. Since FTX’s crash, the price of cryptocurrencies has plummeted. You can buy pieces of Bitcoin or buy coins outright if you have the money.
If all you want out of your cryptocurrency is a currency with good value, then this is the right choice for you. Check this out to find locations where you can purchase Bitcoin.
Ethereum is a bit more accessible to buyers. The price point is much lower than Bitcoin, which means it’s easier to purchase multiple coins. There are also the applications Ethereum brings to blockchain technology and blockchain applications.
Ethereum is the second-most valuable coin on the market, so you’ll still be getting a good value for your investment. The big draw here, however, is the utility options Ethereum affords.
If you plan to explore using blockchain technology and develop apps, then buying Ethereum may be what’s best for you.
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Cryptocurrency can be an excellent way to help diversify your investment portfolio. Before you make a decision, keep the difference between Bitcoin and Ethereum in mind. Bitcoin is an excellent alternative currency, and while Ethereum is too, it also has lots of utilities that Bitcoin doesn’t.
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