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Crypto 101 for new traders – ETH or BTC?

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

By: S_N_Chatterjee


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, 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.


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 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

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