22.06.2023 13:30

Investing in Bitcoin or Ethereum – Which is better for Traders?

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There’s no doubt that the lucrative cryptocurrency market is embarked on an incredibly impressive bull run, with the market-leading Bitcoin (BTC) token blazing a trail for others to follow in this respect.

The increasingly popular Ethereum (ETH) token has also grown exponentially through 2020 and Q1 of this year, with this asset boosting the market’s second-largest capitalization volume and a current token price of $4,054.24.

In this post, we’ll appraise these two growth assets in greater detail, while asking which token you should consider trading and investing in during 2023.

BTC’s Most Recent Bull Run

As of May 10th, 2021, a single BTC token was valued at $58,102.19, as Bitcoin continued to hover around the $60,000 mark after exponential growth through the final quarter of 2020.

To put this into context, the price of BTC was just $10,764.28 in September 2020, with this increasing nearly three-fold to $28,768.84 by the end of December.

This trend continued into the New Year, while the decision of Tesla owner Elon Musk to invest $1.5 billion in Bitcoin triggered even more pronounced growth as the asset’s value peaked at $46,642.61.

This growth seems to have plateaued since March, with the asset struggling to achieve any kind of sustained breakout above the $60,000 mark.

However, it has also managed to avoid the type of sharp depreciation that usually follows a crypto bull run, suggesting that the asset is gaining credibility as a relatively secure store of wealth.

What About Ethereum?

Ethereum is clearly established as the second-largest crypto asset in the marketplace, with this second-generation blockchain having built on BTC’s open-source template while introducing the capacity to build decentralized apps (dApps) across a wide range of applications (we’ll have a little more on this later).

Despite directly tackling Bitcoin’s fundamental issues (including scalability and diminishing transaction speeds), Ethereum has historically traded for less than BTC.

However, it has also seen its value and total market capitalization soar during the last 12 months, with the most significant hikes witnessed since January.

At the beginning of 2021, a single ETH token cost investors $740.364535. However, it has subsequently peaked at an impressive $4,071.519118 on May 10th, reflecting a five-fold increase and a rate of growth that shows no sign of abating anytime soon.

The Last Word – Which Investment Option is Better for Traders?

Certainly, Ethereum’s most recent growth has continued while the price of BTC has stagnated, with the latter having met serious and concerted resistance at $60,000.

From a longer-term perspective, however, it has been predicted that BTC could achieve a price-point high of $400,000 by the end of 2021, while experts have claimed that Ethereum could soar to a value of $22,000 during the same period.

Clearly, BTC offers a particularly appealing option to investors from this perspective, especially for those who are able to afford the token price of around $58,000. It also continues to mirror gold as a relative safe-haven asset, with this likely to appeal to risk-averse investors in the marketplace.

You’ll also need to factor in the underlying purpose of each blockchain, with Ethereum offering additional value as a platform to facilitate immutable and programmatic smart contracts. It has also facilitated the development of decentralized apps, affording it superior functionality and increased appeal in the marketplace.

This could improve the value proposition of ETH over time, making now the ideal time to invest while it’s still relatively affordable.

And now in 2023 Bitcoin costs 30 236,60$, Ethereum costs 1 910,93$.

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