Types of cryptocurrency: Bitcoin vs Ethereum


The transactions are grouped into blocks and added to the blockchain when a block has been „mined“. Once a block has been mined, it is permanently added to the blockchain. Both the block and the transactions within the block cannot be changed once the block has been added to the rest of the chain. A new block of transactions is created roughly every 10 minutes.

Furthermore, the correlation of ethereum to NASDAQ started to increase sharply just as US interest rates started to rise. When the liquidity tap turns off, usually by central banks raising rates, the correlation between diverse assets shoots up. As far as the trading of both assets is concerned, at CEX.IO we observed that in December 2020 ETH/USD trading volumes grew by 20%, while BTC/USD grew by 47.5%.

Proof of stake involve risks and are not suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. However, to invest in cryptocurrency, we must first understand it. Just because you understand bitcoin, does not mean you know how ethereum works.

  • Because a Bitcoin can be divided into 100 million pieces , there will come a day wherein the block reward is smaller than the smallest unit of Bitcoin.
  • For example, of the top ten cryptocurrencies by market value in 2013, only seven are still functioning today.
  • The Bitcoin fees are slightly higher as they have to pay more to their miners, largely due to the greater value of Bitcoin.
  • After reading this guide, you’ll be able to make an informed decision about which cryptocurrency is right for you.
  • It can also be used to pay for different transaction costs.
  • Ethereum, and the broader crypto market, enjoyed an impressive rally throughout the first half of January.

Your exposure to ethereum needs to be appropriately sized so that you can survive 50% to 80% drawdowns. Drawdowns provide good entry levels for exposure, but we would not go max long in an environment of rising central bank rates and falling global growth momentum. Each currency has different underlying protocols and technology. That impacts how they trade, their volatility, and how you can value them. Some are more like stocks, others commodities, and others currencies.

How does Bitcoin work?

bitcoin vs ethereum was up 63% at the beginning of April 2022 compared with last year’s price, while Bitcoin was down 25%, according toThe Block. However, the crash has levelled the playing field and at the time of writing, on 28 June, they have both fallen to 39% below last year’s price. Despite Ether’s greater circulating supply, Bitcoin has the upper hand with its market cap. With a staggering $398bn to its name, Bitcoin’s market cap is more than double that of Ethereum’s $146bn.

However, you can pay them more if you want your transaction special attention. Just remember that transactions go through regardless of paying a fee. Ether and Bitcoin work similarly in that they’re both used to complete peer-to-peer payments. The contracts assure that a given output only occurs after a certain set of predefined rules gets met. Ether is also utilized for service payments such as computational power needed to add blocks to the Ethereum blockchain. It can also be used to pay for different transaction costs.

Playboy relaunches its publication digitally via its paywall platform

The Bitcoin blockchain contains a full record of every Bitcoin transaction that has ever taken place since 3 January 2009. The blockchain is replicated and continuously synchronised on every single computer that runs the Bitcoin network. As mentioned above, PoW is done by ‘mining’ for transactions by completing mathematical equations. These equations require an insane amount of energy to process- Bitcoin mining uses more energy per year than the entire country of Argentina.


First, we provide paid placements to advertisers to present their offers. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market. But remember there are no guarantees, so don’t put all your eggs in one basket. Devcoin, novacoin and CHNCoin are no longer listed by the price-tracking website CoinMarketCap, while freicoin and terracoin have fallen in value and the latter is worth a fraction what it was in 2013. The price of a single bitcoin fell below $20,000 (£17,250) in June 2022 and has loitered around that level since then.

FAQs Bitcoin VS Ethereum

It’s the one cryptocurrency that most people have heard about. Bitcoin has an established reputation and is now accepted by major retailers, including Microsoft, Starbucks, and BMW. So if crypto goes mainstream, Bitcoin has a strong chance of becoming the currency of choice. The supply is continuous, although it will slow down as more coins are produced.