Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
RAMPANT MONEY PRINTING INFLATION BIG PICTURE! - 16th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21
Why Tether USDT, Stable Scam Coins Could COLLAPSE the Crypto Markets - Black Swan 2021 - 6th Jun 21
Stock Market: 4 Tips for Investing in Gold - 6th Jun 21
Apple (AAPL) Summer Correction Stock Trend Analysis - 5th Jun 21
Stock Market Sentiment Speaks: I 'Believe' We Rally Into A June Swoon - 5th Jun 21
Stock Market Russell 2000 After Reaching A Trend Channel High Flags Out - 5th Jun 21
Money Is Cheap, Own Gold - 5th Jun 21
Bitcoin and Ravencoin Cryptos CRASH Bear Market Buying Levels Price Targets - 4th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Crypto 101 for new traders – ETH or BTC?

Currencies / cryptocurrency May 12, 2021 - 10:13 AM GMT

By: S_N_Chatterjee

Currencies

With an aggregated market capitalization close to $1.5 trillion, Bitcoin and Ether continue to dominate the cryptocurrency industry, benefiting from the network effect and increasing investments coming from both the retail and institutional sides. These two tokens have been in the market for a long period, when compared to altcoins that were launched more recently, yet for some people, the question arising is whether Bitcoin or Ether is the right pick.

Since the answer is flexible and depends on a series of factors, a more in-depth analysis must be made to help all those interested in finding out all the pros and cons, in order to ultimately start trading BTC or ETH. The good news is that these cryptocurrencies are available for trading on many online platforms such as aroxcapital.com, where even beginners can get started and learn more.


Bitcoin and Ethereum

Trading Bitcoin

After a massive bull run, which started in March 2020, Bitcoin’s price currently stands at around $55,000, an astounding level, given how depressed market conditions were a year ago. There have been many short-term and mid-term trading/investment opportunities in the meantime and given the persistent volatility, even now it is possible to benefit from the daily BTC price swings.

Add to that the high demand combined with diminishing new supply, as well as the ability to gain exposure in many different places, which are things people need to consider. On the negative side, however, Bitcoin is the most expensive cryptocurrency and its high valuation makes it vulnerable to sharper pullbacks.

Trading Ether

On the other hand, Ether is currently valued at $3,400 and it’s more than 10x cheaper when  compared to Bitcoin - a fact that has created several important advantages. First, it has a much higher growth potential over the mid to long-term horizon. Second, even when using margin trading, buying or selling Ether requires less capital due to its low valuation.

At the same time, Ethereum is a blockchain where numerous innovations are occurring. Smart contracts, DeFi, and NFTs are just some of them. Since it is a blockchain where many other projects are operating, it is also possible to see consistent ETH demand over the longer term.

Same as with Bitcoin, it might be argued that Ether currently stands at an elevated level and overbought conditions make the uncertainty high. The Ethereum blockchain is also in a transition phase. Ethereum 2.0 is implemented gradually and any hiccups along the way can impact market valuations.

BTC or ETH?

New traders might be asking what to choose – Bitcoin or Ether. If they use a trading platform like Arox Capital, both cryptocurrencies are available, paired with fiat or altcoins. The decision ultimately depends on personal goals, risk aversion and approach (short-term trading or long-term investing), as well as the capital available.

For some, Bitcoin might be too expensive and Ether would be a cheaper option. Other traders can view BTC as a cryptocurrency vulnerable in the face of pullback and try to look for selling opportunities.

In the longer run, Ether seems to be the token poised to have a higher upward momentum, given its lower valuation. Also, Bitcoin can continue to benefit from heavy investments and adoption, pushing its price to new all-time highs, far beyond what analysts are expecting.

The bottom line

Bitcoin and Ether are leading cryptocurrencies suitable for traders just getting started in the industry. These tokens have their own particularities and thus must be approached differently. For buying or selling, trading or investing, both BTC and ETH are solid options to consider based on the variables previously mentioned. The only certainty is that volatility in the crypto space will remain elevated, potentially generating new opportunities for people who want to join the financial revolution.

By S N Chatterjee

Copyright 2021 © S N Chatterjee - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in