Cryptocurrency is becoming a popular investment for millions of people online. As of 2022, the average global cryptocurrency ownership rate rose to 3.9% (over 300 million users). Also, over 18,000 businesses now accept cryptocurrency payments.
Among all the available cryptocurrencies, Bitcoin and Ethereum are topping the market. So if you’re ready to invest in a cryptocurrency, then why not go for one of the two.
In this guide, you’ll be able to answer the question, “should I buy Bitcoin or Ethereum?” So, read on to learn six factors that you need to consider when choosing between Bitcoin or Ethereum:
1. Compare the Risks
There are risks with Bitcoin and Ethereum, and the possible growth is downright speculative. However, both are excellent choices if you’re a beginner with cryptocurrencies.
Some say it’s reasonable to divide the difference and invest in Bitcoin and Ethereum. Others claim that Ethereum’s technological prospect outweighs Bitcoin’s more established status. On the other hand, experts agree to have your investments not more than five percent of your portfolio.
2. Timing is Everything
Digital assets like Bitcoin and Ethereum could fluctuate with short notice. It’s because the digital currency universe moves fast and is downright volatile. Generally, cryptocurrency investors try to buy more coins when their price drops.
Bear in mind that both Bitcoin and Ethereum currencies are speculative. Each millionaire who has heaped money into the crypto domain can see it all vanish overnight. By researching and finding the best timing when investing in cryptocurrencies, you’ll have the best odds of success.
3. Look For a Fast Mining Process
The best thing to look at between Bitcoin and Ethereum is the mining process. When it comes to the speed of the mining process, the Ethereum system is much faster.
For the Bitcoin network, the mining process takes about 10 minutes. On the other hand, Ethereum only takes 20 seconds.
Aside from that, one of the other differences between Bitcoin and Ethereum is that ETH is more flexible as people hold their Bitcoin on the Ethereum chain. However, you cannot have Ethereum on the Bitcoin blockchain.
4. Create an Investment Plan
Successful investors build a strategy for their cryptocurrency assets. This can include placing a limit order, which means their coin will get sold if prices hit a specific level. Other crypto exchanges also let you copy traders’ actions in the market.
Make sure you know the Bitcoin or Ethereum price before finalizing your investment.
5. Is it a Decentralized System?
All the transactions in cryptocurrency are in-store in a public ledger. The identity of coin investors has encryption to ensure the legality of record keeping.
Due to Bitcoin and Ethereum currency having a decentralized system, you own it. This means that neither the bank nor government has any control over it.
6. Usability in Stores
Businesses worldwide now accept Bitcoin and Ethereum crypto as a mode of payment. Some of the big companies where you can use cryptos include Microsoft and Overstock. You can also book your flight, tours, hotels, and rentals using cryptocurrencies.
The best part about this is that they accept both cryptocurrencies without extra fees. However, Ethereum has a much faster acceptance rate compared to Bitcoin.
Should I Buy Bitcoin or Ethereum?
Cryptocurrencies are now global and independent, so you can use them anytime. You can go ahead and compare the pros and cons of Bitcoin and Ethereum, but you can always go for both cryptocurrencies.
If you still want to go for one cryptocurrency and ask, “should I buy Bitcoin or Ethereum?” Then, why not check out the rest of our guides on cryptocurrencies to help you decide.