Should invest in Bitcoin or Ethereum?

Anyone who wants to enter the crypto market needs to get used to the huge fluctuations of prices, even for the oldest and largest coins.

Bitcoin and Ethereum are the two largest cryptocurrencies on the market today. Photo: Getty The days when Bitcoin was the only option for investors looking to get rich in the crypto market are now a thing of the past. Ether, the world’s second-largest digital currency, has just continued to set new records as interest in so-called altcoins continues to soar. Dogecoin, which was originally a joke, now has a market value of nearly $ 90 billion. For the majority of people, the 2 biggest cryptocurrencies still receive the greatest interest. Both Bitcoin and Ether had a great start in 2021, Bitcoin’s price doubled, Ether also more than quadrupled, compared with an 11% increase in the S&P 500 index. Where to invest in Ether Ether is the most commonly used token in the world, and Ethereum is also the currency that Microsoft Corp pays for in exclusive digital art (NFT) purchases and sales, which are causing the ‘ fever ‘in the market recently. Pat LaVecchia, CEO of trading platform Oasis Pro Markets, said, “Ether is a blockchain platform has the same role as the app stores of Apple and Android”. Whereas “Bitcoin is a commodity like gold, or is a store of value”. Unlike Bitcoin, where many features (eg supply) have been fixed since inception, the Ethereum platform is still evolving with updates that promise to help improve the system. It is even possible that regulations change and cause the supply to drop, which will drive Ether prices up. “Investors often see Ethereum as a growth investment, betting on a decentralized ecosystem that continues to evolve,” said Phil Bonello, research director at Grayscale Investments. Bitcoin investment case Although Bitcoin’s lead has weakened somewhat recently, Bitcoin now accounts for about 46% of the total crypto market cap, compared to almost 70% at the start of the year. However, according to crypto tracking firm CoinGecko, it remains the largest digital currency in the world with a market value of more than $ 1 trillion, compared with Ethereum’s $ 380 billion. Bitcoin is still the choice of big businesses. Tesla and MicroStrategy buys Bitcoin, not Ether. When Paul Tudor Jones or Ray Dalio talk about cryptocurrencies, they just talk about Bitcoin. Cornerstone Macro analysts have studied how Bitcoin and Ether prices played during a plunge. They found that when the Bloomberg Galaxy Crypto Index fell 20%, the downside risk for Ether was greater than for Bitcoin and vice versa. If you want to invest in both Anyone who wants to enter the crypto market needs to get used to the huge fluctuations of prices, even for the oldest and largest coins. In addition, this market has countless other risks such as the exchange can be hacked, the management suddenly tightens the management of this currency … Most mainstream financial advisers say that they do not encourage investors to put more than 5% of their portfolio in cryptocurrencies and also warn clients that they need to prepare themselves for the loss. . However, for those looking to get into the crypto space, old advice like diversifying your portfolios and hedging is always true. “Due to diversification opportunities among digital currencies, we should consider investing a small amount of them, rather than just Bitcoin alone,” advises Cornerstone analysts.