So, you’ve finally decided to invest and become a member of the Growing World of Crypto club—don’t look it up; we just made that up. By now, you probably know that there are over 11,000 cryptocurrencies available on the market, leaving you with thousands of coins to choose from. Frankly, deciding which coin to pick for your investment venture isn’t easy. Apart from the fact that we’re talking about your hard-earned money, these digital currencies also offer remarkable uses that are just so hard to ignore.
To help you narrow down your options, let’s begin with the top two cryptocurrencies in the market today—Bitcoin (BTC) and Ethereum (ETH). Let’s get you started.
The leading cryptos in a nutshell
Both cryptos are packed with new financial opportunities, but which one can take your investment journey to the next level? Let’s start with Bitcoin (BTC), the most dominant coin in the market today.
This crypto, created by its pseudonymous creator, Satoshi Nakamoto, was introduced to the world in 2009. It was intended to be a peer-to-peer (P2P) electronic cash system that eliminates the need for third parties or financial intermediaries.
Since it’s a virtual currency, Bitcoin works solely digitally—no physical representations. There are no paper bills to fold or coins to put into your piggy bank. Bitcoin uses a digital wallet where you can easily send, receive, track, and manage your funds and transactions. For the best part, Bitcoin wallets are accessible on smartphones and computers; just make sure they’re connected to the internet!
Getting your hands on Bitcoin is easy. Once you have your digital wallet ready, all you need to do is look for a secure and trustworthy crypto exchange. You can buy fractions of BTC either from a traditional or a P2P marketplace. Most P2P platforms offer tons of ways to get started with Bitcoin easily. Paxful, for example, allows you to buy Bitcoin using nearly 400 payment methods. All you have to do is choose the one that best fits your needs.
Bitcoin is also known as a highly volatile currency. Like any other asset, BTC’s value is also dictated by supply and demand. This coin has a supply cap of 21 million BTC, with over 18 million BTC already in circulation. When Bitcoin first came into existence, it was worth nothing. But as many people started to get their hands on it, BTC’s value began to get off the ground—it even reached a skyrocketing price of about 65,000 USD in April 2021.
Currently (September 2021), it’s selling at over 49,000 USD and this price can either go up or down depending on the movements in the market.
Now, let’s talk about Ethereum (ETH), the second leading crypto in the market after Bitcoin. ETH was created by Vitalik Buterin in 2013 and was introduced to the world in 2015. This digital currency is more than just money. This innovation can build and run thousands of decentralized applications that can be used every day in different industries, which is why it’s best known as the world’s programmable blockchain.
Like Bitcoin, Ethereum also has no physical representation—it uses a digital wallet for storage and management purposes. Ethereum also runs and operates through a powerful innovation called the blockchain, which essentially is the brain behind every crypto in the market.
Buying Ethereum is really easy. Like Bitcoin, you can also get amounts of ETH in different cryptocurrency exchanges. There are thousands out there, but make sure you’re buying from a secure and reputable one, like Paxful. There, you can buy Ethereum from millions of users worldwide using any of the payment methods it supports—including the top payment options in your country.
Ethereum is known as one of the highly traded cryptocurrencies in the market. That’s why it managed to secure the spot after Bitcoin. Because ETH is more than just for payments and other monetary transactions, many folks from finance, technology, and many more industries began to tap its notable and unique features.
It’s also migrating its entire network towards Ethereum 2.0, which makes Ethereum more scalable, secure, and sustainable. It also started switching to the Proof-of-Stake (PoS) consensus mechanism—but that’s another story for another time.
Currently, Ethereum is selling at about 3,700 USD, a price that’s undeniably far from that of Bitcoin but as more people start to discover and apply its uses, ETH’s price has the potential to shoot up in no time.
BTC or ETH: Which crypto will it be?
If you still haven’t decided yet, let’s have a quick comparison of Bitcoin and Ethereum. Both coins only exist digitally—whichever you choose, you’ll need a crypto wallet that can surely keep your funds safe.
It’s also worth noting that Bitcoin is purely a digital currency that cuts the need for intermediaries. You don’t need a bank account to get started; just a smartphone or computer with a strong internet connection, then you’ll be good to go. Because Bitcoin is decentralized and knows no bounds, its potential to extend financial inclusion to everyone can reach even the remotest parts of the world.
Ethereum, on the other hand, is more than just digital money. Its programmable blockchain allows you to do more and unlock more opportunities in and out of the financial world. This is what makes Ethereum incredibly unique and attractive to investors and developers alike.
So, which among the two is the best crypto for you? As always, don’t forget to do your research before getting involved in something new. As a timeless financial quote says: “An investment in knowledge pays the best interest.” Good luck!
*The content of this article is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. You should carry out your own independent verification of facts and data and may want to seek professional advice before making any decisions.