Nov 20, · Trading the ratio allows traders to stay % exposed to the potential upside in crypto markets while taking advantage of changes in ETH and BTC price whenever prices are not as . Sep 18, · Meanwhile, TRON (TRX) comes in 4th place, still better than Bitcoin, but far behind ETH. Should You Invest In Bitcoin Or Ethereum Choosing your favorite cryptocurrency depends on your . Bitcoin and Ether offer sufficient volatility and price movement for trading purposes. Traders should keep an eye out for both cryptocurrency pairs and see which one is better suited for trading on that .
Better to trade in eth or btcEthereum vs Bitcoin: which project has the upper hand in ?
Choosing your favorite cryptocurrency depends on your trading strategy and personal preferences. Put them both on tests for some time. See which one matches your view of the market and your expectations. But Ethereum , despite being less expensive than BTC, is also a very secure currency.
From a general perspective, Bitcoin and Ethereum have entirely different goals, aiming to solve a specific problem. Bitcoin was meant to be an alternative to fiat currencies as it has always been known and is, therefore, a means of transaction payment and value storage. Ethereum is developed as a platform that facilitates peer-to-peer person-to-person contracts and applications while using its currency.
The implementation of blockchain technology goes far beyond simple digital currencies. Launched in July , Ethereum is the largest and most established open decentralized software platform that enables the building and running of smart contracts and Distributed Applications Dapps without disruption, fraud, control, or interference. In , Ethereum launched a pre-sale for Ethereum, which received an enormous response.
Etherium is like a vehicle for the Ethereum platform; it is sought after by developers looking to develop and run applications inside Ethereum. Ethereum has long established itself as one of the largest and most successful cryptocurrency projects. Therefore ethereum is a good investment. Although not yet in the same category as Bitcoin in terms of value, Ethereum has completely eclipsed all other altcoins.
Today it is among major rivals to the original crypto coin. Due to its immense popularity, you can purchase Ethereum from all online cryptocurrency brokers.
You can clearly see the difference when you compare it to Ether, which had its bull sprints here and there, but not as consistently as Bitcoin. All in all, both instruments have moved up a lot, so be aware that there is always a risk of market prices falling due to unexpected news.
Also, the risk of an implosion can never be ruled out either when considering these asset classes. Bitcoin remains the most well-known cryptocurrency and there seems to be no threat of it losing that position. Therefore, the chance that Bitcoin will be able to preserve this status in as well is fairly decent. The benefit of the leadership role for Bitcoin is that it could attract more investors. Cryptocurrencies in general, but specifically Bitcoin, are perhaps becoming more alluring for bigger investors, perhaps institutional investors as well.
Bitcoin is well positioned to receive much of their attention, if is anything to go by, Ether may receive a smaller part of the investments — but that remains to be seen. It is useful to know the specifics of each cryptocurrency, whether it's Bitcoin or Ether, and feel comfortable with their parameters.
How does Bitcoin work? Bitcoin's emphasis as a peer-to-peer decentralised payment system has been more on security and the process of mining which is how Bitcoins are created. You can find out more about this in our What is Bitcoin?
How does Ether work? Ether offers more than just a payment system. According to the Ethereum Project itself, Ethereum is a "decentralised platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference". There are a number of key differences between the two cryptocurrencies, here's just a couple of examples:. Trading an instrument you like is not a must, but having faith in its long-term potential and design could make it easier for traders to hold on to swing trades and aim for larger targets.
This particular factor is very personal and will depend from trader to trader. Keeping up-to-date with some of the developments within each cryptocurrency will also provide some key information about possible price reactions. The Bitcoin Cash hard fork — away from the original Bitcoin — for instance, did temporarily impact price — so keeping an eye on trends like this can be important. From this perspective, Ether is slightly more stable than Bitcoin, when taking into account the most recent split.
In any case, it doesn't hurt to keep an eye on the latest trends in each cryptocurrency and to see whether one of the two offers less risk and more stability. This can also change from month to month, as trends and news updates in this space continue to come thick and fast. Trading is not only about the fundamentals factor 2 and 3 or long-term potential factor 1 , but also simply about the price action and volatility of a cryptocurrency.
This is especially important when trading on lower time frames, for example. Slow moving instruments do not offer interesting trade setups because it is difficult to obtain a profit by entering and exiting if price hardly moves up or down.
Volatility is key as it provides opportunities for traders. Price action is also key: it is important to review Ether and Bitcoin charts and familiarise yourself with the instrument. This is even more valid for short-term charts, where price action can sometimes be quick and unexpected. Some instruments will also fit your style of trading more naturally. You should always make sure you know how to trade Bitcoin CFDs before trading it with real money. We recommend signing up for a free Demo account and practising in a real trading environment, with virtual funds.
We believe that the IV changes in different options contracts could somewhat suggest the upcoming volatility of the underlying and how traders were anticipating it. We think that traders should consider this alongside with many other factors that could drive the crypto markets. The way options traders pick the strike prices seems telling us that market has been takinga more progressive view on BTC prices, while the view on ETH has been relatively moderate.
We can see that most of the BTC options open interestwere in the strike price area, while the second and the third most popular strike price wear around and On the ETH side, strikes have been the most popular, while the second and the third most OI were and On the ETH side, calls with strikes seem like a typical bullish setup. On the other hand, and puts look more like defensive setups, as ETH has been in a rally since mid-May.
On the BTC side, calls with strikes also seem like a standard bullish setup, but calls with and strike prices seem even more aggressive.
From the put writing perspective, puts with , , and strike price were all in-the-money. If a trader is bearish on BTC, they may consider puts with even lower strike prices than above However, it looks like BTC traders have been more long-term bullish on the price, while ETH traders have been more focus on the short-term price actions.
Still, traders and investors should be flexible on the trading strategies and adjust their setups according to the market conditions. This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital.
You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary. The cryptocurrency market slipped into a red zone, with all major altcoins nursing significant losses. Stablecoins may pose risks to "international monetary stability".