As we dive deep and deep into the digital ocean, we find the newest and astonishing discoveries. One such discovery is Crypto-Currency. When we think about investment in crypto-currencies, two names pop into our minds- Bitcoin and Ethereum. We should aim to find a platform that provides a variety of crypto assets like- United Exchange. Today we wish to make an attempt to burst many myths in order for you to see a clearer picture by the time you reach the end of this article.
Bitcoin, a global crypto-currency was invented in 2008 by an unknown person or set of people using the name Satoshi Nakamoto which was primarily invented to be used as a medium of exchange in place of the fiat currency (INR, USD, etc.) and hoped to be backed by countries. Bitcoin enables peer-to-peer transactions. The only difference is you don’t have to pay high transaction fees, and there is no centralized authority that regulates the working of Bitcoin. It uses the SHA-256 algorithm to ensure security. While sending and receiving the money using Bitcoin, the anonymity of the user is maintained. It allows individuals to own their own money (without dependence on banks) and aims to bring financial stability for people who live in countries with unstable currencies. In totality, 21 million bitcoins can be mined, whereas near 18 million coins have been mined. Once all these coins have been mined, the supply of bitcoins will be exhausted and the prices go-up in this anticipation. At the moment, one BTC costs around 27,25,237.83 INR, which would change the very next moment.
Ethereum was launched in 2015 as an upgrade to the weaknesses reviewed in Bitcoin. Ethereum is not a crypto-currency at all- Ether (ETH) is. Ethereum also enables peer-to-peer transactions. Ether is a token based on the platform called – Ethereum. Developers build decentralized apps (dApps) and smart contracts on top of the platform using the language. A smart contract allows users to exchange just about anything of value: shares, money, real estate, etc. In short- Whatever Bitcoin does for money, Ethereum does for contracts. The primary purpose of the Ethereum platform was to monetize operations of Smart contracts and dApps, but it is also used as a digital currency as well. There’s no preset capital for a total supply of ETH. At the moment, around 96,815,798 ETH are circulating. At the moment, one Ether costs around 104,945.24 INR
No that, we have gone through the basic concept, we must understand, Ethereum is not a replacement of Bitcoin rather a complementary component. In the future, in the game of crypto, there is no winner or loser; both Bitcoin and Ethereum are at a win-win situation. You should always go for an exchange which provides high liquidity and more number of pairs-such as the United Exchange. It’s better to diversify (split) your funds among various crypto assets and it is a common practice for all types of investors, including whales of the market. To protect your interests from the unfavorable market cycles you should opt to diversify your funds and go for a platform which provides both spot and margin trading like United Exchange. While how much value to assign to which asset depends upon your own-self!
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