difference between Bitcoin and Ethereum

Have you thought about investing in crypto? If so, you’ve likely wondered about whether you should invest in Bitcoin or Ethereum.

Before accumulating one or either of these cryptocurrencies, you want to make sure you understand their pros and cons. You also want to understand how both of them work to help you make your decision.

This guide will help you understand what is Bitcoin and what is Ethereum and what investors can expect from both of them.

Let’s look into the difference between Bitcoin and Ethereum:

What Is Bitcoin?

Bitcoin was the first major cryptocurrency and remains the most popular option for investing in crypto.

Bitcoin’s main use is an alternative form of currency. It’s the most popular cryptocurrency available at crypto ATMs. Bitcoin is also the most popular option for crypto investments.

If you’re looking to buy an asset to sell for fiat currency, you might wish to consider buying Bitcoin.

As of this writing, Bitcoin has crossed over $60,000 per coin! As such, one can buy Bitcoin and then sell it after a few months or years of holding the coin.

As a side note, you should also look at how do Bitcoin ATMs work if you’re considering investing in the coin.

What Is Ethereum?

The second most popular cryptocurrency, as of this publication, is Ethereum. It’s also one of the earliest cryptocurrencies invented. Its main purpose is to work as a currency for the IT and software industry.

However, like Bitcoin, it’s been used as an investment asset. It’s currently cheaper than Bitcoin and can get sold for a large sum of fiat currency. As of this publication, 1 Ether costs around $4,000.

Ethereum has also gotten used as a digital currency outside of the IT and software industry. It’s become the preferred cryptocurrency for buying digital assets such as NFTs.

As such, NFTs have also helped digital creators become rich. The most popular example is of the American artist Beeple becoming a multi-millionaire after receiving the equivalent in Ether!

Bitcoin vs Ethereum

So now the question remains: Which is the better cryptocurrency to invest in?

You have to assess the main reason for buying cryptocurrency. If you want to use it as a hedge against inflation, then Bitcoin seems to be the better option at the moment.

If you wish to earn a large amount of fiat currency, Bitcoin remains the most popular option.

However, for the average investor, Ethereum is far more affordable. It might serve as a great alternative for using crypto as an investment asset. If you wish to cash in on the NFT craze you’ll likely want to stick to Ethereum.

That’s the Difference Between Bitcoin and Ethereum

Now that you know the difference between Bitcoin and Ethereum, you can decide which is the best option for you.

If you want to make some fast cash, Bitcoin is a great option if you can afford it or you’re willing to hold the coins for the long term. Ethereum is a great alternative as it’s currently more affordable.

If you want a cryptocurrency as a hedge against inflation, Bitcoin is the better option. Ethereum is the best currency at the moment for investing in NFTs.

You can find more great tips on crypto investments on our website!

By Sambit