Bitcoin and Ethereum are the most popular cryptocurrencies and are rated the top two cryptocurrencies by market capitalisation. For a trader, it's important to know the difference between them to take advantage of the market. As you may know, a trader's strategy is very different from that of an investor. Sep 18, · 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 . Mar 21, · Ethereum has fundamental advantages that hopefully will help Ethereum price suppress Bitcoin in the coming years. Trading Ethereum should only be done with money you can afford to lose. This is because the whole cryptocurrency market it’s mostly based off of speculation. Nobody really knows what the potential is and what the future holds.5/5(1).
Trading with ethereum or bitcoinHow to Trade Ethereum - Is Etherium is Better Than Bitcoin | TechBullion
Because these two crypto assets are vastly different, it is difficult to say exactly which is the best investment. Both Bitcoin and Ethereum started out their lives at prices that were virtually worthless. Around this time is when Ethereum was first created. Meanwhile, Ethereum started to benefit enormously from the emergence of initial coin offerings — a trend that saw the creation of thousands of new altcoins built on top of the Ethereum blockchain as ERC20 tokens.
The popular crowdfunding and fundraising method let investors get in early to what they expected to be the next Bitcoin. This suggests that Ethereum could climb a lot faster than Ethereum per coin, but Bitcoin price predictions go a lot higher than Ethereum price predictions. Both are reasonable estimates for each cryptocurrency. Signs suggest that this over performance in Ethereum is over for the time being, with Bitcoin set to regain some lost ground against the second ranked cryptocurrency and top altcoin.
Bitcoin and Ethereum rise together as part of the greater crypto tide, but there are times when each outperforms the other. However, Bitcoin could be ready for a massive explosion and break out into a bull run — which could leave Ethereum behind on its ratio. Clearly, investing in these two cryptocurrencies can be challenging due to the ratio on cryptocurrency trading pairs.
Although they can perform well together, when crypto assets are falling, altcoins like Ethereum tend to drop far more sharply and are more volatile. The best case scenario for investors is to trade the Bitcoin and Ethereum ratio, along with positions in Bitcoin and Ethereum itself, so that profits can be made whichever way the crypto market turns while taking full advantage of the swing opportunities that take place between Ethereum vs Bitcoin. PrimeXBT also offers crypto-to-crypto trading pairs, allowing for the most varied trading positions and diverse trading portfolio.
Traders can even hedge their Bitcoin holdings with Ethereum or short one on the ratio to profit from the ebb and flow between them. The process takes just a few clicks and less than a minute. Accounts require a minimum deposit of only 0. To begin, it is recommended to use the analysis section to chart a trading strategy, stop loss, and take profit levels before executing a trade.
After building a plan, traders can set a limit order or market order for a long or short trade on Bitcoin or Ethereum, or even Bitcoin vs Ethereum. The main difference is in the fact that Bitcoin is mainly designed for storing value and moving it as a payment currency; Ethereum is a blockchain ecosystem and supercomputer that developers can use to build all kinds of unique experiences on.
No, there will ever only be one Bitcoin, but Ethereum has a place in the market. Some day it could beat Bitcoin as the number one cryptocurrency, but they will always have separate use cases, and therefore Ethereum cannot be the next Bitcoin. Ethereum cannot reach the price of Bitcoin without reaching trillions of dollars in market cap. It is possible, however, it is unlikely given the fact that as Ethereum price grows, so will Bitcoin, making it impossible to catch up with the top cryptocurrency.
In a sense, it is more flexible than Bitcoin, so some may believe that Ethereum is better than Bitcoin. Regarding the rising popularity of ethereum reflected in top crypto rankings. What is the better investment: bitcoin or ethereum? To get the answer to this question, as a trader, you should keep an eye on both crypto parities and see which one is best suited to your trading style when you want to invest. Here we will focus more on why ethereum is a good investment and how to trade ethereum, regarding its rising popularity reflected in top crypto rankings.
The IOST has the highest score in technology but lags far behind the top 10 in creativity. 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. Eventually, the amount produced every year will become a smaller percentage of the total outstanding Ether. At some point, an equilibrium should be reached between the amount of Ether being lost and the amount being produced. Therefore, from a fundamental analysis standpoint, you need to understand what types of applications are being built on the network and how much demand there is for them.
The quality of the applications will be one factor that determines the value of the Ether. Now here's where things get a little weird. The applications that can be built on top of Ethereum can also create their own currencies. These are called tokens and will become an increasingly big part of the cryptocurrency trading landscape. This is a current screenshot from CoinMarketCap. The other big platform is Omni, which is built on top of the Bitcoin blockchain.
Some startups will bolt-on a token to their existing app and use that as a way to raise cash, instead of going to investors. That's great if the token serves a genuine purpose. However, in the coming months, you are going to see a ton of crapcoin launches initial coin offering or ICO that have nothing to do with value and everything to do with making a quick buck.
One example, in my opinion, is the upcoming Kik ICO. I don't see any reason for a messaging app to have its own currency. Where are you going to use that currency outside of the app? Nowhere, it's a dumb idea. But they will raise a ton of money and investors will probably lose their investment. Be very wary. A lot of ICOs are just trying to take advantage of the hype and are just launching coins to make money.
If not controlled, these crapcoins could damage the reputation of Ethereum and possibly affect the price. Of course, some of these ICOs will succeed. But I think this will be a very, very small percentage. Ethereum a big deal almost everywhere, but it's absolutely huge in Asia, especially China.
So in order to understand how valuable Ether will become in the future, we need to keep an eye on the applications that are coming out of China. There are several good exchanges out there, so do your research. The exchange you use will depend on where you live, governing laws and personal preference.
Luckily, many exchanges allow you to purchase Ether directly. Other smaller cryptocurrencies require you buy Bitcoin first, then exchange it for your target cryptocurrency. Here is a list of the more reputable exchanges out there. I don't know how long that offer will last, so if that link doesn't work, you missed out. You may have to provide some proof of identification when you sign up on some of these exchanges.
This is to prevent money laundering, so just to it. These are more for if you have other currencies that you want to convert to Ether. In that case, these exchanges make it super easy to do the conversion. No password to remember and you don't have to provide any personal information. It feels pretty sketchy when you first do it, but I have never had a problem with it.
Next, fund your account with a credit card or bank transfer. Usually, the credit card option is faster so I would recommend using that. Getting money into your account with a bank transfer can take as long as a week. The upside with a bank transfer is that your deposit limits will usually be higher. Since there is a lot of upside potential in cryptocurrencies, there are many traders that are taking a buy and hold approach. So if that is your strategy, you would just buy some Ether and store it in a safe place.
Well, there are two options, paper wallets or hardware wallets. I would not recommend storing Ether in mobile apps, computer wallets, exchanges or online wallets for any length of time.
Those options are great for short-term transactions, but are not safe for long-term storage. Once your currency is on paper, store it away in a safe place. When you are ready to cash in the currency, use an online wallet or mobile wallet app to get the coins from the paper to your exchange of choice, or your bank. Some exchanges may give you the ability to go straight from the paper wallet to the exchange's online wallet. To get the detailed Ether paper wallet guide, read this.
Another good option for buy and hold investors is the hardware wallet. Trezor is the most popular one right now. The ideal buy and hold solution would probably be a combination of paper wallets and a hardware wallet. But it's just a personal preference. Learn more about the Trezor here. Active trading is a little tough because not all exchanges give you the ability to set pending orders and stop losses, like with Forex brokers.
But exchanges like Poloniex do allow you to set stop-limit orders. However, if your exchange does not allow this, you have to setup alerts, so you are aware of market movements and can place trades manually.
Exchanges like Coinbase don't allow pending orders. To setup alerts, you can use TradingView. Alerts are only available in the Pro plan , but if you are an active trader, it is well worth it. Add it to your watchlist and click on it. The chart will come up.