Bitcoin vs Ethereum

When getting started with crypto, your first task is to decide which cryptocurrency you’d like to invest in. The most popular choices are Bitcoin (BTC) and Ethereum (ETH) but there are thousands upon thousands to choose from — all with their own unique behaviours and trends.

What is Bitcoin?

Bitcoin was first established in 2008, with the first transaction being the purchase of a pizza in 2009. Bitcoin utilises peer-to-peer technology (blockchain) which allows users to transact with one another safely and securely. Bitcoin has no central authority or bank involvement, making it free from government regulation. Bitcoin is open-source, meaning it is designed to be entirely public — no one person owns or controls it.

Making a Bitcoin payment is as straightforward as sending an email. The first step is to purchase Bitcoin using an exchange. You then transfer Bitcoins from your digital wallet (obtained when you buy the currency) to someone else’s wallet using an app or website. All you need is the recipient’s unique Bitcoin address.

The payment process is verified by a network of ordinary people like you and me, with computers that run specialist software. The people who run the operation are called Bitcoin miners.

Once this payment has been verified, a record of the transaction is made on a shared online ledger. No names or addresses are used in this transaction record — just your Bitcoin code and the amount transferred. Once an entry into this ledger has been made, it cannot be amended or deleted. This ensures full transparency as to who has Bitcoin and how much is owned and transacted. Each new ‘block’ of transactions links back to a previous block of transactions relating to that Bitcoin. If you trace these blocks back far enough, you’ll end up at the very first Bitcoin transaction.

Bitcoin can be used as a profit building tool. If you invest in Bitcoin, the value of your investment will constantly change. Sometimes it might fluctuate upwards, giving you more money than you originally invested. Trading in Bitcoin with other coins can be a good way to build a crypto portfolio.

Increasing numbers of retailers are now accepting Bitcoin as payment, including Gucci, Paypal and Rolex. Bitcoin is expected to continue to gain traction.

What is Ethereum?

The blockchain technology described above is able to do much more than permit crypto transactions. It can be used to create applications. Established in 2015, Ethereum is the biggest and most trusted, open-ended decentralized software platform in existence. You can use it to enable the deployment of smart contract and decentralized applications, which can be built without any interference from third parties or downtime. Ethereum even uses its very own programming language.

So what does this have to do with cryptocurrency? Ethereum has its very own coin — Ether (ETH). This is one of the most popular coins in existence. Ether is essentially the fuel that runs the Ethereum platform. It can be traded as a digital currency or it can be used on the Ethereum network to run applications.

Which Is Better?

It is impossible to predict whether or not you will earn more money with Bitcoin or Ether due to the nature of the fluctuating market. However, what you can do is transfer funds between the two coins based on their performance in relation to one another. For example, if you think that your Bitcoin value is about to plummet, but Ether is holding stable, you can transfer your funds to Ether. Using alerts can help you to do this at the crucial moment.‍

What are Alerts?

JustAlerts allows you to keep an eye on the performance of your coins. You’ll receive real-time data allowing you to buy and sell at pivotal times, giving you the ability to make timely decisions. No matter where you are — whether you’re commuting, at the workplace or watching TV, you can receive a crypto alert that gives you the insight to make an immediate change to your crypto holdings.

To find out more about JustAlerts, click here.