Are you tired of seeing the U.S Dollar or the Great British Pound rise and fall? The Coronavirus pandemic has put the world economy into free-fall and traditional currencies are slipping.
This affects everything from the price of goods to how far your money goes. If you have money to burn you might worry about keeping your money in a traditional currency, especially since banks can freeze your money for no reason.
There are two alternatives in the form of cryptocurrency but when comparing Bitcoin vs Ethereum which is the best cryptocurrency for you?
Here’s everything you need to know.
Stability With Bitcoin
Deciding on what cryptocurrency you want to invest in and the answer to ‘is Bitcoin better?’ depends on what you want from your cryptocurrency experience.
You might think all cryptocurrencies go up and down like a yo-yo but the fact is Bitcoin is more stable than you think. It could be a good investment if you want to place your money somewhere relatively stable rather than keeping it in traditional currencies which are all taking a hit thanks to Covid.
There are variations of Bitcoin that are more stable than others and are designed for savings. You won’t get rich but you will be able to know that you will make some money and it won’t be a huge risk to keep your money in Bitcoin, which many would describe as the best cryptocurrency.
General Advantages to Crypto
The advantages of a cryptocurrency far outweigh those of traditional currencies. There is no government control or regulation by big banks leaving you free to sleep at night without worrying that your money is going to get frozen for an arbitrary reason.
You can also trade your money easily to other currencies and can keep it in a virtual wallet – there’s no need to visit bank branches or contact anyone if you have an issue with your money.
Bitcoin, the best cryptocurrency, offers a stable digital banking alternative where you can make a small profit. Some say it will shortly become a $1trillion asset. It’s a nice place to put your money to know it’s safe. In a crisis, people generally trade out of other cryptocurrencies and into the most stable and well-known one.
Big Money to Be Made With Ethereum
The main difference between Bitcoin and Ethereum is that there’s money to be made with ethereum but you are taking more of a risk.
The currency fluctuates rapidly but if you time it right you could double or even triple your money in a short time.
Traditional currencies have a floor and a ceiling when you trade into them. If for instance, your home currency is the Great British Pound (GBP), you can be assured that it will never go below USD 1.20 for any significant period of time or above $1.45.
You will never lose anything and you can be prepared to wait for it to bounce back up if you do see it plummet.
Etherum can bounce around so much that it can lose or gain 50% of its value in one week. This gives you a solid way to make money in a short space of time if you know what you are doing.
Unfortunately without the backing of Gold or any major bank and with only the blockchain managing it, it’s hard to predict where it will go. It can feel completely random.
Ethereum Is Worth a Lot But You Can Still Invest
Most currencies are worth less than the U.S Dollar with the Great British Pound and the Euro being notable exceptions. 1 Ethereum can be worth hundreds of U.S Dollars. In fact, in 2018 it reached a 5 year high of $1,068.
These extraordinary amounts mean that general Ethereum is a lot stronger than traditional currencies in terms of their value.
While this is expensive it’s not out of reach for most people who want to invest in the cryptocurrency market.
Bitcoin Is Worth an Eyewatering Amount
While Ethereum might be worth a lot Bitcoin is worth a staggering amount. It is currently priced at around $18,000 and is seeing highs after the pandemic. But it’s also had five years lows of $300. Remember though that there are different types of Bitcoin. There are some so-called stable coins where the price can be pegged.
Thankfully you can buy parts of a Bitcoin you don’t have to buy an entire Bitcoin but it still reveals how strong the currency is – for the most part – and how much of a lucrative investment it is compared to some cryptocurrencies which are only worth a few pence.
This is largely because of the number of people using Bitcoin and its reputation as a trusted cryptocurrency around the world.
Is ethereum better? Ethereum is still a well-known cryptocurrency but it doesn’t have the same reputation as Bitcoin. This is something you certainly need to think about when making the decision about whether to buy ethereum or Bitcoin.
Bitcoin Vs Ethereum: Choose the Right One for You
If you are deciding between Bitcoin vs Ethereum then you need to consider your own personal circumstances. Are you looking for a place to stash your money while traditional currencies remain fragile and the consequences of the pandemic continue to be felt around the world? Or are you looking for the chance to make some money that might result in you losing out?
Bitcoin is also worth a lot more than Ethereum which might be part of your decision as this will limit the amount you can invest in Bitcoin if you are on a budget.
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