Posted in:

What is the Difference Between Bitcoin and Ethereum?

© by https://keyt.com/

Introduction

Bitcoin and Ethereum have become the most popular digital assets today. Virtually every crypto trader must have heard of these two very important cryptocurrency in the crypto industry. However, some still find it difficult to distinguish between Bitcoin and Ethereum. While both are digital currencies, there exists some important difference between them which every crypto trader must take time to master. We have therefore highlighted these major differences and similarities between Bitcoin and Ethereum for all crypto traders to learn and master them. You will further learn from this work the best crypto exchanges where you can buy Bitcoin and Ethereum without much difficulties. 

What is Bitcoin?

Bitcoin is the first invented cryptocurrency with an unknown founder called Satoshi Nakamoto. It is an important digital asset built on a Blockchain and used in running smart contracts. The fact that Bitcoin has been the first cryptocurrency ever created has attracted the greatest investment into it. Hence it has emerged the most important cryptocurrency today based on its market capitalization with its total market capitalization resting 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 others who worked with him on the project. This digital asset was created to provide a better solution for the perceived backdrops in Bitcoin. It supports the building of DApps, gaming tokens and NFT projects. Its network is highly scalable and faster for running smart contracts. 

Major difference between Bitcoin and Ethereum

Bitcoin  Ethereum 
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 other paper money and replace them.  Ethereum was created as a token for running smart contracts and carrying out decentralized transactions 
Takes about ten minutes to complete transactions on its blockchain  Takes only a few seconds to complete its smart contracts 
Consumes great energy to carry out its transactions  Consumes less energy for running its smart contracts 
Less eco-friendly  More eco-friendly 
Uses the Proof-of-work mechanism  Set to transition to Proof-of-stake mechanism in September 2022
Recognized as a legal tender in few countries like El-Salvador and Central African Republic  Not yet legalized as a legal tender in any country. 
Very expensive hence not suitable for building other NFT projects.  Less expensive and supports the creation of new decentralized NFT projects

What are the similarities between Bitcoin and Ethereum?

  • Both are used as a means of payment. 
  • Bitcoin and Ethereum are considered as risky assets. 
  • Their prices are very volatile. 
  • Serves as an investment package. 
  • Offers anonymity for all users. 
  • Both Bitcoin and Ethereum have been built on a Blockchain
  • Aims to replace paper money. 
  • Currently uses the Proof-of-work mechanism though Ethereum is working to move up to the Proof-of-stake mechanism. 
  • The two 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 one trade Bitcoin and Ethereum?

The most convenient place for trading Bitcoin and Ethereum is through a regulated crypto exchange. This provides the opportunity to trade these two digital currencies as CFD or spot trading. We have therefore provided the list of the best crypto exchanges offering Bitcoin and Ethereum for trading today. 

List of Best Ten Crypto Exchanges for trading Bitcoin and Ethereum 

  • Binance
  • eToro
  • Kraken
  • Kucoin
  • Capital.com
  • Coinbase
  • Coinmama
  • Bitfinex
  • Gemini
  • Bitstamp