Sep 11, · So far, has been a good year for cryptocurrencies, including BTC and ETH. BTC reached $12, on August 18, up from close to $7, at the end of ETH has had an even more impressive run, rallying from $ to a high of $ on September 2. To determine if trading ETH or BTC is better, let's combine our data in a table. By comparing the data, we can say that both assets are attractive for trading, and the volatility for both cryptocurrencies is good. In the first period, Ethereum demonstrated a slightly larger drop than Bitcoin, with a tiny difference of 5%. Bitcoin and Ether offer sufficient volatility and price movement for trading purposes. Traders should keep an eye out for both cryptocurrency pairs and see which one is better suited for trading on that specific day, week or month. Choosing your favourite instrument really depends on your own preferences.
Better to trade in eth or btcBTC/USD vs. ETH/USD: Which is Better to Trade? - Admiral Markets
In this white paper, Bitcoin was described as a P2P electronic cash system that is based on blockchain technology. Blockchain technology represents a public ledger that records all transactions that are executed and prevents data manipulation.
This makes it an excellent method of keeping track of transaction history, but it also has numerous other use cases, which will be discussed later on. Blockchain, as the name suggests, consists of blocks, which are basically groups of transactions that come together, and are verified by Bitcoin miners. Ethereum is the representative of the second generation of cryptocurrency , and for years, it was the second largest coin by market cap.
It lost that rank only recently, but many believe that it will get it back eventually. The launch of this altcoin represents a big turning point in blockchain and crypto world, as it introduced additional use cases for blockchain technology. Until ETH came to be, blockchain's only purpose was to support cryptocurrencies. However, Ethereum pointed out that his technology can be used in many different ways, such as for the creation of decentralized apps, smart contracts , and alike.
This was just a start, though, as now developers realized that there are new ways that blockchain can be utilized. Due to its nature, it can prevent things like fraud, censorship, or downtime. It is even resistant to third-party interference, and so, the potential for the next generation of the internet was born. This is also the biggest difference between Bitcoin and Ethereum. While Bitcoin is a cryptocurrency — a form of online cash that is used for making payments, Ethereum is a platform, which uses its own coin, Ether ETH.
As we have seen already, it is difficult to talk about these two coins without noticing differences immediately. They are considered to be cryptocurrencies , despite the fact that Ethereum is only a cryptocurrency in addition to being something bigger. Another big difference between the two is the way mining works for them. As mentioned, blockchain technology is at the core of both of these projects. However, the difference lies in their consensus algorithms, as they use different ones.
Bitcoin uses a PoW algorithm , where miners' rewards are based on the amount of computing power they use for solving blocks. More provided computing power means bigger reward, but also higher resource consumption, which leads to larger bills.
Ethereum does things differently, and it uses the PoS algorithm. Here, the probability of validating a block doesn't depend on users' computer power, but of the size of a stake that they hold.
In other words, it all depends on how many ETH coins you own. By combining the balance on exchanges number, we may able to see a more comprehensive image. One of the narratives is that the total ETH gas used has reached a new all-time high, meaning more people have been using the network; thus, the price should go up.
ETH prices have touched levels before retracting back to the handles. However, when we look at the mean number of ETH gas used, we could see another picture. Data from Glassnode shows that the mean of ETH gas used has been lowering on the back of the rally, and formed a downtrend.
From that perspective, there may not be as many transactions as we thought. Generally, a higher transaction fee could suggest that the market has a higher demand for conducting transactions. Therefore users are willing to pay more for faster settlements. That also indicates that more people are using the network. We believe that cryptocurrency is a kind of network value asset, which means the more people use and hodl it, the more valuable the asset will be.
If analyzing on-chain activities is like fundamental analysis to equities, analyzing derivatives trading activities could be like statistical analysis. It could provide market participants with a glimpse of how real traders have been positioning their trades.
We could find valuable information from that. We noticed that one of the recent conversations in the crypto community is that the options skew of ETH has turned negative, and it could be bullish for the price. Traders can use these relative changes as a trading strategy. We believe that the IV changes in different options contracts could somewhat suggest the upcoming volatility of the underlying and how traders were anticipating it. We think that traders should consider this alongside with many other factors that could drive the crypto markets.
Taxbit is a cryptocurrency tax software that helps both small cryptocurrency consumers and big enterprises with crypto accounting. Austin Woodward, the CEO DeFi has been booming as of late, but there are still challenges that need to be addressed in the effort to push Related Items: bitcoin , Blockchain Technology , cryptocurrency , digital currency , Ethereum , fiat currencies , trade.
Trending Stories Finance News OptionsSwing Inc. Latest News Top mistakes in test automation and how to avoid them Quality assurance goes in hand with any software development project. It discovers code bugs The concept of Bitcoin and cryptocurrency can be intimidating as the technical terms are Technology 4 Projects Leading the Digital Identity Race Few technologies are as consequential as those that facilitate the issuance and storage of ECommerce Meet the UK marketplace disrupting the global eCommerce industry According to a recent survey from British banking firm Barclays, one in four industry Like Us On Facebook.
Latest Interview. Latest Press Release. Blockchain eosfinex Exchange Integrates With The Wombat Wallet DeFi has been booming as of late, but there are still challenges that need to be addressed in the effort to push To Top.