Entering the cryptocurrency market is not an easy task for someone who doesn’t have the necessary experience. At the same time, even experienced traders do not know all the things about the market, not to mention that this market is a versatile one, which means that new trends constantly come and go following these trends is an absolute must to establish the proper position.
At the same time, there are a lot of platforms you can use to participate in this market. If you don’t know where to start looking for the one that suits your needs the best, we recommend you take a look at bitcointhunderbolt.org. The most popular choices people make in this market are investing in Bitcoin and Ethereum.
Choosing between these is a bit complex since both choices come with a string of pros and cons. Of course, we can see that Bitcoin has a long track record. But that doesn’t mean that Ethereum doesn’t have some positive sides that outweigh the positive sides of Bitcoin. Let’s take a look at these two choices in greater detail.
Bitcoin ─ The Basics
We all know that Bitcoin is the oldest and most valuable cryptocurrency out there. It represents the biggest part of the market, and you will see that people to this day, invest in this one more than any other option out there. If you take a look at the market, you will see that its total market cap is around a trillion.
Bitcoin represents around $440 million. Since this is the most valuable and priciest one, we can see that it attracts the most attention from large investors, like Elon Musk and Mark Zuckerberg. Of course, the dominance of BTC is natural since it precedes all other options, and it had an upper hand since it exists in 2009.
Another thing you should understand is that BTC has a limited supply, which only adds to the credibility of the digital currency. The limit is set to 21 million coins, and after all of them are mine, the market will be formed completely, and the value will stick and become more stable. Currently, the number of mined coins is around 19 million.
What are the Benefits?
The main benefit of investing in BTC is its accessibility and liquidity. You will not need to wait for more than a couple of minutes before you can obtain or sell the coins you have in your e-wallet. At the same time, it is clear that more and more businesses are adopting BTC, so you can use this digital currency for buying and selling.
BTC also has independence from any authority out there, which means that no central bank or any other institution has control over it. Plus, we would like to say that it is a completely anonymous thing. So, you will not need to share any of your personal information with anyone. You will be able to buy and sell just with the address you have.
The final benefit we would like to point out is the possibility of a high return potential. What we want to say is that the value of the BTC is pretty unstable and it can rise and fall constantly. If you play your cards right, you can invest in digital currency when its value is low and receive a healthy profit when it ultimately rises.
Ethereum ─ The Basics
Ethereum is currently the number two player in the cryptocurrency market, and its market cap is around $199 billion. The biggest benefit of investing in this one is that you will be able to execute safe financial transactions with smart contracts. Smart contracts activate automatically on the blockchain system after certain requirements are met.
On the other side, you can see that Ethereum has played a major role in creating and trading what we know today as NFT. What makes ETH different from BTC is that it has an unlimited supply. Today, you will see that there are around 122 million coins out there. However, we can see that the creation of new tokens is going to happen pretty soon, some are even announced.
Of course, it is not completely clear how the supply of Ethereum will progress in the future, but it is more than clear that there will be no limitations when it comes to the supply. That doesn’t mean that this is not a credible cryptocurrency since the cap may be introduced at some moment in the future.
What are the Benefits?
Among the benefits of ETH, you will see that it is a flexible, open, and low-cost digital currency, which makes cooperation between multiple parties as easy as possible. When you scratch the surface, you will see that Ethereum functions like a distributed ledger, however, it has a unique architecture with a high number of important layers.
Data coordination is one of the main things you should know about ETH, since it offers a much better allocation of the data, and it is credible enough so that the network participators do not have to rely on the central entity. All the transactions are conducted on their own, within the system.
Which is the Superior One?
When you take a look at both of the options in front of you, the main conclusion you can take out of it is that Bitcoin is still the superior option. Naturally, there is no guarantee that BTC will have a better performance than let’s say ETH, in the next year.
There are so many different elements that influence this outcome. However, the experience, and the projections that are now in front of us, say that the BTC will stay the dominant one in the time to come, with a small possibility of any other digital currency overtaking its prime position.
Making the decision in which one of these you will invest depends on a number of factors, and taking all of them into consideration before you make any move on the market is a must.