These last few years have seen a surge in popularity when it comes to cryptocurrency, and rightly so. With many cryptocurrencies performing far better than anyone ever could have hoped for, it’s no wonder why many investors, entrepreneurs, venture capitalists, and global leaders, all want to learn more about how they can benefit them.
For those who don’t know, cryptocurrency is a type of digital currency that functions via cryptography. Today, it’s also a legitimate medium for exchange in many parts of the world. It’s also expected to become even more widely used and accepted in the coming years. At the moment, Bitcoin and Ethereum are two of the most popular cryptocurrencies. Other popular coins include Ripple, Bitcoin Cash, Dash, and Litecoin.
What Kickstarted the Cryptocurrency Craze?
Back in 2009, Bitcoin was created as the first ever decentralized digital currency. Shortly afterwards, manifold cryptocurrencies began emerging into the market, known as altcoins. Since then, Bitcoin has seen unprecedented growth. Last year, the cryptocurrency jumped from $1,000 to $20,000 by mid-December, and its transaction volume exceeds 300,000 per day.
Many analysts and industry professionals predict 2018 will be another successful year not only for Bitcoin but Ethereum as well. In fact, some are even beginning to hint that Ethereum might become the best cryptocurrency to invest in.
What is Ethereum, how does it stack up against Bitcoin and whether to buy Ethereum now? Let’s find out.
What Is Ethereum?
Invented by cryptocurrency genius Vitalik Buterin, Ethereum (ETH) is the second-most successful cryptocurrency. It has a market worth of $61 billion, and the ETH to USD rate clocks in at a little over $630. Since its creation, Ethereum has undergone several evolutions to fix flaws and streamline functionality. All the efforts to perfect the cryptocurrency paid off because today Ethereum works smoothly.
Ethereum functions by processing not only virtual currency transactions but also complex programs and contracts, making it a flexible tool on the blockchain. Additionally, Ethereum’s platform can host various tokens and has many clones, which is a big reason why it has become so popular in recent years.
How Does Ethereum Operate?
Although Ethereum shares similar procedures and a blockchain design with Bitcoin, it’s undergone plenty of application tweaks that allow a broader range of functionality outside of supporting money. For example, the way Ethereum is designed allows developers to experiment with transaction layouts, how regulations are implemented, and how users interact with and use the cryptocurrency. Besides, Ethereum’s encoding language makes it easy for developers to create more programs and edit existing ones, adding to the uniqueness of the cryptocurrency.
How Does Ethereum Differ from Bitcoin?
If you’re on the fence about whether to invest in Bitcoin or Ethereum, it would probably help to know how the two differ. It’s important to note, however, that it’s not just about which one is better than the other, but rather which one offers what you’re looking for. After all, both have different ways of working. To help you make your decision, check out the following ways Ethereum differs from Bitcoin:
Applicability: Compared to Bitcoin, Ethereum’s applicability is wider because it’s not only designed for processing transactions. Instead, it functions as a platform for dApps (decentralized applications) with internal Ether tokens, also known as the cryptocurrency purchased on exchanges. Simply put, the Ethereum network operates like a large computer running many programs and processing countless transactions at once.
Value: When it comes to making an investment, investors want to be sure that what they’re getting ready to invest in is valuable. That said, Ethereum is one cryptocurrency that has increased in value over the years. Compared to Bitcoin, Ethereum is still young and has ways to go before catching up to Bitcoin’s prices. However, Ethereum prices have risen dramatically over the past few years. In fact, if you look back over the last year, you’ll notice a 3,000 percent increase. This increase makes many in the industry believe it’s only a matter of time before Ethereum overtakes Bitcoin as the cryptocurrency king.
Technology: One of the biggest differences between Bitcoin and Ethereum is the technology behind them. In fact, some would argue that Ethereum’s technology is what makes it the better choice over Bitcoin for investors. Designed with fast and efficient data processing tools that are leaps and bounds ahead of Bitcoin’s, Ethereum’s system can automatically upload important documentation related to agreements and contracts while still functioning as a payment processing system. As previously mentioned, Ethereum acts more like a giant decentralized computer than anything else. Its capabilities exceed what Bitcoin currently has to offer.
Is Ethereum the Better Investment?
Unlike many other cryptocurrencies, including Bitcoin, Ethereum isn’t limited by the demand and supply of Ether. Because it’s much more than a cryptocurrency, it’s able to grow in other areas, as well, making it a solid choice for investors.
Ethereum has many short-term and long-term benefits when it comes to investing. For starters, in the short term, investors can expect to see consistent rises and falls in the price of Ether. Because Ethereum has been rising and falling so consistently over the years, when Ether’s price does dip a bit, investors seize the moment to buy more Ether in time for the price to rise again. The long-term forecast for Ethereum also paints a rosy picture. As Ethereum’s network continues to develop and grow, it’s expected that so too will the price.
Though, at the end of the day, it really comes down to personal preference as regards to what type of cryptocurrency to invest in.
Where to buy Ethereum?
When it comes to buying Ethereum, the investors are confronted with a variety of choices. There are about 200 cryptocurrency exchanges and online platforms, with most of them listing Ethereum as an option for trading. CEX.IO is one of them.
CEX.IO has been earning trust of the customers since 2013. It is one of the largest exchanges in the UK, and among the most popular ones in the world. CEX.IO can boast of almost 2,5 million active traders using their platform, and a wide range of fiat options available for cryptocurrency trades.
Any user looking into investing in Ethereum, can buy it with a credit card at CEX.IO in few clicks and at affordable rates, or trade it against other currencies with minimum fees. The supported pairs are ETH/BTC, ETH/USD, ETH/EUR, and ETH/GBP. For those hunting for more trading tools, CEX.IO also offers the Ethereum margin trading option.