The backbone of Ethereum and Bitcoin are the same, however, both of these cryptos run on blockchain technology to secure its network. No longer do we have to rely on giving others our precious data to make transactions — blockchain gives us the power to create a trustless, immutable way to do business. Both represent investment proxies for the new age of decentralized financial applications and digital currencies utilizing blockchain technology. A blockchain is a a transparent, digital ledger of transactions.

ethereum vs bitcoin

LTC on the other hand, is known by those who have taken an interest and investigated the technology. After all, it’s demand that governs price, and there are many investors who will simply turn to the most well-known coins, and fewer who will turn to smaller but perhaps more efficient coins. Litecoin is also a PoW blockchain, but to mine coins it undergoes a different mining process to Bitcoin’s SHA-256, which is called a Scrypt Hash Function.

Advantages of Ether over Bitcoin

The prior market cycle was cut short abruptly by Bitcoin’s double top and Macro conditions. Without that anomaly, Ethereum was likely to test its all time… Gary Anglebrandt is a US-based editor, copywriter, and communications consultant with a background in business and international news.

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. The more crypto someone stakes, the greater their chances of being chosen to validate a block of transactions to a blockchain and earning a set amount of crypto. The system also discourages bad actors with financial penalties.

Buying and Using Ethereum

Cryptocurrency is one of the buzziest investments of the past several years. As of late 2022, the crypto market is experiencing a widespread rout that has the value of many tokens to plunge, including ETH. If you believe the market is headed for recovery, it’ll be a smart decision to invest in ETH. Using a decentralized exchange, you can purchase Bitcoin or Ethereum without giving up your identity.

The technical storage or access that is used exclusively for anonymous statistical purposes. Whereas the market cap of Ethereum is $135.3 Billion with a volume of $24.5 Million Ether. The Ether market cap is about 1/2 of that size, coming in at around $153billion. Ethereum was created as a complement to Bitcoin, not as competition. While the history of Bitcoin can be traced back to 2008 when Satoshi Nakamoto created it, there are many different stories and rumors about the birth of Ethereum.

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account.

At the same time, Ethereum can support more complex financial software. The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.


Approximately three to four million Bitcoin have been lost forever, due to people losing their private keys. It takes around 10 minutes to complete a Bitcoin transaction, while an Ethereum transaction only takes 12 seconds. As a SoFi member, you get access to exclusive benefits designed to help set you up for success with your money, community, and career.

Unable to get out of the pool in time, traders are set to see the price drop lower in search of the bottom of this tank. The author has not received compensation for writing this article, other than from FXStreet. The Crypto market is undergoing a time-consuming consolidation that is likely to resolve in a volatile move. Key levels have been defined to forecast the markets’ potential trajectory. You can buy BTC and ETH at, but first you’ll need a Wallet. provides crypto wallets to millions of people, and allows you to self-custody your crypto so you have full control of your assets.

BTC vs. ETH – Which Is the Best Crypto to Buy in 2023

However, the DAO was compromised due to its source code flaws, with the hacker stealing more than one-third of the funds. Bitcoin supporters will argue all this extra functionality is superfluous and dilutes the true innovation of better money. They argue these “bells and whistles” compromise the integrity of the blockchain. Ethereum supporters argue that these additional functionalities are necissary. Perhaps it rings even more true for ETH and altcoins, which have even more to do to regain investors’ trust. Ethereum wasn’t quite as bad, but still fell from an all-time high of nearly $5,000.

While both networks allow developers to build ontop of them, leveraging the blockchains for data storage, in Ethereum, application developers can create their own tokens to govern their applications. These include “standards” like ERC-20 and ERC-721, which correspond to tokens like DAI and UNI and NFTs respectfully. As previously stated, Bitcoin focusses on solely being the superior form of money, without this additional functionality of smart contracts and tokens which exist on Ethereum. As cryptocurrencies, Bitcoin and Ethereum are in many ways similar.

It will then be followed by another upgrade that will introduce sharding mechanism. Bitcoin and Ethereum prices crashed hard in 2022 as the crypto industry faced a mountain of challenges. Some of the main headwinds were the soaring interest rates, rising inflation, and the collapse of Terra, Voyager Digital and FTX. In this BTC vs ETH comparison, we will assess the better buy between the two.

Average Transaction Cost

The latter was designed as a decentralized computing network, which has given rise to the decentralized finance space. Bitcoin is the first cryptocurrency to invent and use blockchain technology. Ethereum works similar to Bitcoin in this regard in that it can also facilitate peer-to-peer payment transactions. ethereum vs bitcoin The Ethereum Virtual Machine allows Ethereum to record simple financial transactions, keep track of users’ accounts, and deploy smart contracts. It is a dynamic software that allows computer functions to be processed virtually across a network of computers rather than being centrally controlled.

ethereum vs bitcoin

Ethereum was intended as a platform to facilitate immutable, programmatic contracts and applications via a global virtual machine. Ether , the native cryptocurrency of the Ethereum network, is the second most popular digital token after bitcoin . As the second-largest cryptocurrency by market capitalization , comparisons between Ether and bitcoin are only natural. Ethereum was built to provide a platform to monetize operations of the smart contracts and decentralized applications built on Ethereum. Ethereum processes up to 15 transactions in a second which makes it faster than Bitcoin where Bitcoin only processes about 3-5 transactions.

Which to Buy? Bitcoin or Ethereum?

Other types of cryptocurrencies use different methods to create coins and keep their blockchains running. At a very high level, Bitcoin is a virtual or digital currency that is created and secured using advanced cryptography — essentially, in this case, the solving of complex mathematical problems. Bitcoin can be stored, sent, and spent just like any other form of currency , and it can now be used to buy many things from a coffee at Starbucks® to a mansion. The average transaction cost on the ethereum platform is higher and more variable than Bitcoin’s transaction processing fees. In the six months between March and Sept. 2022, the cost of a basiceEthereum transaction ranged from about $1.6 to more than $196. Bitcoin’s average transaction fee ranged approximately between 74 cents and $3.5 in the same time period.

Bitcoin is digital money that doesn’t require any trusted third parties to operate . Ethereum is built to facilitate and monetise the operation of smart contracts and dApps. To run code in a decentralised and automatic fashion that then enables any number of other use cases like gambling, games, futures contracts, exchanges and more. Ethereum’s native cryptocurrency, also known as Ether, can be used to pay for services or transaction fees on the network. Though its adoption in mainstream finance trails Bitcoin, many people have also used it as a speculative investment. Andy Rosen covers cryptocurrency investing and alternative assets for NerdWallet.

Transaction processing speed is a significant component of future scalability and thus widespread user adoption. Ethereum was created by Vitalik Buterin in 2014 with the release of the Ethereum white paper. I am not here to school you on it, everyone can do their own research. That being said, I believe that we are in the midst of a re-accumulation.

Bitcoin vs. Ethereum – Which One Is a Better Investment for 2023?

However, suppose you’re more interested in investing your money. As of late August 2021, Ethereum was valued at $3,200 with a market cap of around $385 billion—making it the world’s second-largest cryptocurrency. In fact, it’s four times larger than the third-largest cryptocurrency.

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