Among the certainly attractive properties of cryptocurrencies is their high protection against theft and counterfeiting. Governments, special services, and other central authorities cannot control digital assets. In the last few years, large companies and financial institutions have become actively interested in cryptocurrencies.

Bitcoin and Ethereum are the two most famous and largest coins that attract the attention of novice investors. According to statistics, recently all people choose to invest in Ethereum.

Features Of Bitcoin And Ethereum

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Among the prerequisites for the creation of electronic money, the decline of public trust in the banking system as a whole and the devaluation of fiat currencies played a significant role.

Bitcoin was developed as a peer-to-peer payment system and an alternative means of payment protected from counterfeiting and inflation. Coin authenticity and protection against counterfeiting are ensured by cryptographic methods. In order to protect against inflation, the supply of coins is initially limited: only 21 million coins will be mined.

In fact, Bitcoin is the first-ever deflationary asset with a fixed reserve. For this reason, BTC is more promising precisely as an instrument of a long-term investment than as a substitute for money. It is possible that the day will come when it will be possible to get several thousand dollars by converting 0.0056 BTC to USD, but it is unlikely that we will see this in the next 1-2 years.

The purpose of the Ethereum project is to create a secure environment for electronic commerce. Numerous decentralized applications and other cryptocurrency projects are already operating on the basis of the Ethereum blockchain. At the same time, the number of tokens is not limited.

Price And Growth Potential

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Price is the most obvious indicator, but not the main criterion for choosing an asset. Growth potential is much more important. During 2021, the price of ETH grew by more than 500%, Bitcoin traveled a little less than twice. After reaching local minimums in the early summer of 2022, Ethereum surpassed Bitcoin in terms of recovery rates.

Now another decline is observed, which can be considered a good opportunity to buy more of the ether. It is clearly not worth rushing to change 0.4 ETH to USD without an urgent need.

Cryptocurrency #1 has been trading in a rather narrow price range for several months.

As the monetary policy of the USA normalizes, the importance of Bitcoin as a digital alternative to gold decreases. Ethereum is less susceptible to this trend, as its main value depends on the development of the DeFi sector.

The opinion that in the long-term perspective Ethereum will surpass Bitcoin has been circulating in the media for days. BTC is becoming too expensive to manage payments. Ethereum’s recent transition to a more energy-efficient Proof-of-Stake algorithm should increase the platform’s efficiency. Further step-by-step implementation of the road map can push the price of Ethereum to growth.

Which Coin To Choose

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No matter how banal, there is no universal answer that would suit everyone. The choice of asset largely depends on your goals. If we consider the optimistic scenarios for Bitcoin, in the long term its price is capable of overcoming the six-figure barrier. However, this can take years.

At the moment, Ethereum looks like a more promising asset for both long-term investment and trading. Nevertheless, one should not forget about the diversification of the investment portfolio.

The efficiency of investments can be increased by diversifying the portfolio. The presence of both assets is quite a reasonable move. At the same time, remember that all cryptocurrencies are still included in the group of high-risk assets. Therefore, do not invest more in digital money than you can lose relatively painlessly.

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