Bitcoin and Ethereum have become the most popular digital assets today. Virtually every crypto trader must have heard of these two very important cryptocurrencies in the crypto industry. However, some still find it difficult to distinguish between Bitcoin and Ethereum. Although both are digital currencies, there is an important difference between them that every crypto trader should take the time to master. So we have highlighted these major differences and similarities between Bitcoin and Ethereum for all crypto traders to learn and master. You will further learn from this work the best crypto exchanges where you can buy bitcoin and Ethereum without too much difficulty.
What is bitcoin?
Bitcoin is the first cryptocurrency invented with an unknown founder called Satoshi Nakamoto. It is an important digital asset built on a Blockchain and used in the execution of smart contracts. The fact that Bitcoin was the first cryptocurrency ever created attracted the greatest investment. It has therefore become the largest cryptocurrency today based on its market capitalization, with its total market capitalization standing above 3.7 billion in September 2022.
What is Ethereum?
Ethereum is the second most valuable cryptocurrency after Bitcoin. This digital asset was invented in 2015 by Vitalik Buterin and alongside four other people who worked with him on the project. This digital asset was created to provide a better solution for perceived backgrounds in Bitcoin. It supports building DApps, game tokens and NFT projects. Its network is highly scalable and faster to execute smart contracts.
Major Difference Between Bitcoin and Ethereum
|The founder is unknown||Has a known founder|
|Has a total supply of 21 million||Has an unlimited supply; with a total supply of 122,236,123 at the moment.|
|Bitcoin was created as a coin to compete with and replace other paper currencies.||Ethereum was created as a token to execute smart contracts and perform decentralized transactions|
|Takes about ten minutes to transact on its blockchain||Only takes a few seconds to fulfill its smart contracts|
|Consumes a lot of energy to complete transactions||Consumes less energy to run its smart contracts|
|Less ecological||More ecological|
|Uses the proof-of-work mechanism||Ready to move to proof-of-stake mechanism in September 2022|
|Recognized as legal tender in a few countries such as El-Salvador and the Central African Republic||Not yet legalized as legal tender in any country.|
|Very expensive so not suitable for building other NFT projects.||Cheaper and supports the creation of new decentralized NFT projects|
What are the similarities between Bitcoin and Ethereum?
- Both are used as payment.
- Bitcoin and Ethereum are considered risky assets.
- Their prices are very volatile.
- Serves as an investment package.
- Offers anonymity for all users.
- Bitcoin and Ethereum were both built on a blockchain.
- Aims to replace paper money.
- Currently uses proof-of-work mechanism although Ethereum is working to move to proof-of-stake mechanism.
- Both digital assets can carry large volumes of transactions on their Blockchains.
- New blocks are added by mining.
- Both are digital assets stored in wallets.
Where can Bitcoin and Ethereum be traded?
The most convenient place to trade Bitcoin and Ethereum is done through a regulated crypto exchange. This offers the possibility of trading these two digital currencies in the form of CFDs or spot trading. So, we have provided the list of top crypto exchanges offering Bitcoin and Ethereum for trading today.
List of Top Ten Crypto Exchanges for Trading Bitcoin and Ethereum
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