Jun 04, · 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 . Sep 11, · On fundamentals, both cryptocurrencies are well-positioned for future growth. Fundamentals aside, there are plenty of optimistic price predictions for both ETH and BTC. According to a stock-to-flow price model, BTC is closely following the trend of the previous two halvings. Sep 03, · 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 specific day, week or month. Choosing your favourite instrument really depends on your own cryptodayly.de: Phoebe Chang.
Is it better to trade in btc or ethBTC and ETH: Which one is a better buy?
SFOX was able to make a nice graphic that compares market capitalization, total supply, limit on block size, the average number of blocks per hour, median transaction fee, median transaction value and the average number of transactions per second.
The results are very interesting. An interesting number is the one related to the median transaction value MTV. The median transaction fee has also increased substantially more for ETH than for Bitcoin. But why did that happen? Well, one of the apparent reasons is that the number of transactions increases substantially more for ETH than for BTC. Ethereum is now processing almost 4 times more transactions per second TPS than Bitcoin.
Well, this is another story. Both cryptocurrencies have different use cases and work on their niches. Indeed, the growth in one could help the other receive an impulse and grow as well.
In the same way that it happens with traditional companies, virtual currencies have different functionalities. It is not the same to compare eBay with Microsoft, because both of them have their own characteristics, markets, products and business models. Bitcoin has been created as a store of value and as digital money. Ethereum, instead, is a development platform that uses Ether as a native currency. Programers and companies are able to use the network and create decentralized applications dApps.
With Bitcoin, enterprises and individuals can send and receive funds, or just use the currency to hedge against economic crisis. Comparing both networks in this way, we can assume that Bitcoin and Ethereum are not rival currencies, but instead different networks created for different purposes.
For example, developers on the Ethereum network have created collectable cats CryptoKitties that can be exchanged for ETH. At the same time, there are different decentralized exchanges that allow users to buy and sell ERC currencies based on Ethereum.
It is also important to mention that Ethereum has people working on a wide variety of projects like ICOs , layer 3 protocols, etc. Bitcoin is different. The most famous cryptocurrency has people working in just one important topic: Bitcoin itself. Another interesting point to mention about Bitcoin and Ethereum is the speed of the developments that took place on both networks.
Instead, Ethereum did it at the end of , just two and a half years after being created. The same happens with the market dominance. Bitcoin was growing during more than 7 years to reach current levels, Ethereum was just 3 years to reach such an important position in the market. The same happens with the number of transactions and active addresses.
Ethereum will have to do a great work in order to scale, even more than Bitcoin. Why does it happen in this way? Because Ethereum needs to handle more transactions than Bitcoin, which will be quite difficult to achieve without investing in Sharding, plasma, or Casper.
The Ethereum network, however, is in the process of migrating to a proof-of-stake PoS consensus. The transition is meant to address the scalability issues that have plagued Ethereum for many years.
In PoS, miners are replaced with validators, who stake their coins to secure the network. The Ethereum community chose to go with the Casper PoS protocol, which has a punishment mechanism to prevent malicious behaviour. Arguably, supply is the key difference between Bitcoin and Ethereum networks. Bitcoin has a limited supply, with only 21 million coins set to be mined.
This adds a scarcity element to the bitcoin economics. Furthermore, the new supply of BTC is reduced roughly every four years, through a process called halving. Ethereum, on the other hand, has no hard cap on the amount of ETH that can be created. As it attempts to be a decentralised app store, supporting an entire ecosystem of applications, capping the supply would be counterintuitive.
The concept of transaction fees is another differentiating feature in the Ethereum versus Bitcoin comparison. On the Bitcoin network, transaction fees are paid for each and every transaction.
These fees go to the miners who then validate transactions and place them into a block. Ethereum network uses the concept of gas, priced in ETH , instead of transaction fees. Every interaction with the Ethereum blockchain requires a certain amount of computational effort. Gas is used to pay for that computation. Simple send orders, for example, require little effort. Complex interactions with smart contracts, on the other hand, are very gas-intensive. So the cost of an Ethereum transaction depends on its complexity and the gas price, which is set by the miners.
Block size is important in comparing Bitcoin vs Ethereum. It plays a key role in determining the transaction costs, confirmation times and scalability of a blockchain.
Coronavirus affects markets. Blocks on the Bitcoin network are currently 1 MB. Disagreements over the block size eventually led to the creation of Bitcoin Cash as the fork of Bitcoin. Bitcoin Cash increased the block size to 8 MB, while Bitcoin maintained its block size at 1 MB and implemented the Segregated Witness SegWit soft fork to increase the number of transactions that can fit into a block.
On the Ethereum network, the block size is measured in gas and each block is limited to The gas limit was increased as recently as June , from 10 million, to alleviate the stress on the network, increase processing capacity and reduce fees.
The sell-off coincided with a broad decline in asset prices, from stocks to gold , partially attributed to a rally in the US dollar. So, what are some of the recent news and developments related to Ethereum and Bitcoin? For quite some time, the main focus of the Ethereum community has been on the PoS migration.
It should be able to address the scalability concerns and high transaction fees of the network. The most recent estimates put the launch of the Beacon Chain at the end of or beginning of More recently, the emergence of decentralised finance DeFi applications have pushed transactions and fees on Ethereum to all-time highs. Not only that, but the total amount of gas used on Ethereum is more than double the peak of level, while the price of gas is almost five times higher.
Another exciting development has been the introduction of tokenised Bitcoin on the Ethereum network. Remember, the two projects operate on different blockchains that are not compatible. This represents just 0. As always, predicting asset prices is a thankless task. Instead, we can look at the fundamentals of both networks to assess their future potential. BTC , for instance, is underpinned by strong institutional interest and limited supply acts as an inflation hedge, ever more valuable in the world of easy monetary policies.
ETH , on the other hand, supports a growing ecosystem of decentralised applications and the transition to PoS will further cement its position as the only meaningful smart contracts platform. On fundamentals, both cryptocurrencies are well-positioned for future growth. According to a stock-to-flow price model, BTC is closely following the trend of the previous two halvings. So, which coin should you invest in right now, Ethereum or Bitcoin?
Overall, both cryptocurrencies could be attractive investment opportunities and have a place in an investment portfolio. But as always, investors should exercise caution and do their research before investing in any crypto project. There are several ways to invest in Bitcoin or Ethereum, as well as other cryptocurrencies. A CFD is a derivative product where a broker agrees to pay a trader the difference in the value of an underlying security between two dates; the opening and closing dates of the contract.
You can either hold a long position, speculating that the price will rise, or a short position, speculating that the price will fall. Besides, when trading ETH and BTC via CFDs, you have greater flexibility as you are not tied to the asset: you have merely bought or sold a derivative contract without having to hold the coins themselves.
However, note that CFDs are a leveraged product. Therefore profits, as well as losses, are magnified. Learn more about CFD trading with our free online courses and find out how to trade crypto CFDs with our comprehensive guide.
Indices Forex Commodities Cryptocurrencies.