Investing in ethereum and bitcoin

What is the outlook for bitcoin and ethereum prices given the bearish sentiment that has prevailed so far in ? How do analysts view bitcoin versus ethereum — do they prefer one over the other? Stablecoins, DeFi, NFTs, have emerged as the first smart contract use cases primitives which are driving blockspace demand.

This renewed risk appetite has led altcoins to outperform bitcoin. Most notably, we see ETH increasing its market share by 0. This is rather remarkable because Ethereum has previously decreased against Bitcoin during bear markets with Bitcoin behaving somewhat as a safe haven within the highly speculative crypto market.

Intra-day corrections are taking place, but the trend remains to be upward. We recommend that you always do your own research and consider the latest trends, news, technical and fundamental analysis, and expert opinion to form your own view of the market and its potential.

Never invest more than you can afford to lose. FAQs Is ethereum better than bitcoin? Ethereum does not compete directly with Bitcoin, as the Ethereum blockchain is a smart contract enabled platform while Bitcoin is focused on providing a means of processing decentralised digital payments.

Whether one is a better investment for you will depend on your personal view of the two projects. Why is bitcoin more expensive than ethereum? These include the fact that the Bitcoin blockchain was launched several years before Ethereum, there is a cap on bitcoin supply at 21 million coins while ether supply is uncapped, and BTC is more well-known and available on more investment platforms around the world than ETH.

Should I buy bitcoin or ethereum? The decision on whether to buy BTC or ETH depends on your personal preference and investing goals, among other factors. The Fed meets again on 2 November for their next policy decision; they will probably hike another 75bp. The even will be important for risk markets of which crypto is increasingly a part and broader risk sentiment in general.

What Else Is Happening in Crypto? Alongside investors, miners are feeling the crypto crunch. As prices drop, they are re-evaluating whether it is still profitable to operate their expensive mining rigs. And soaring energy prices exacerbate this effect as the margins for mining profitability tighten.

Hash rates and miner revenues have come down significantly since the start of June. Regulation also is becoming more of a theme throughout , with various executive orders signed already. Increased regulation should mean less uncertainty around crypto markets for investors, which would be bullish. On the flip side, overregulation could stifle innovation by increasing censorship.

The ongoing regulatory backdrop will be key to monitor. Lastly, on ethereum specifically, there is the much-anticipated merge. We previously covered its potential implications. The punchline was that it should be bullish for ethereum. It has prompted other players to start censoring transactions to avoid similar sanctioning. Large ethereum miners are looking to upgrade their equipment , turning to cloud computing and AI ahead of the merge. Summary of ETH Analysis The bottom line is that crypto, including ethereum, will remain under pressure.

The main near-term support would be Fed dovishness rather than any crypto-specific dynamics. We do not see this happening anytime soon. And for long-term investors, we still think some allocation to crypto makes sense — just like an allocation to equities also makes sense. But be prepared for weakness in For all our latest analysis on crypto markets, click here.

With the length of the blockchain continuing to grow and decentralised finance DeFi gaining ground over traditional finance, this new asset class is reshaping the investment landscape. We think ethereum is a worthwhile long-term investment. However, we also note that ethereum is extremely volatile.

That means it experiences large price movements over short periods. Before investing, you must understand the risks involved: you could lose all or a large portion of your investment. Never invest money that you cannot afford to lose. Success stories like these often give people FOMO — or the fear of missing out — if they do not invest immediately. However, to invest in cryptocurrency, we must first understand it.

Crypto tokens are unlike any traditional asset class. And they are all different. Just because you understand bitcoin, does not mean you know how ethereum works. Our video on bitcoin and ethereum fundamentals can help you understand how ethereum prices fluctuate and how to assess trends in important ethereum metrics.

And the video below explains other cryptocurrencies that might put ethereum at risk. 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.

And each crypto token has a unique structure of supply. We think crypto markets are a worthwhile long-term investment. The technology can capture market share on some existing markets like payments and stock trading while creating new markets like valuable scarce digital assets. 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.

A crypto exchange is where buyers and sellers meet to exchange money for coins, coins for other coins, and coins for money. Many options are available such as Coinbase, Binance. You also need access to a crypto wallet to store ethereum and other cryptocurrencies. Many exchanges provide these, but not all do. You can also buy ethereum on platforms like Paypal and Robinhood.

One way to cope with the volatility is to use dollar-cost averaging. Dollar-cost averaging is a strategy where you divide the total amount you want to invest across periodic purchases of the target asset. It simply means that you would invest the same number of dollars each month or quarter, regardless of market trends.

The idea is that when prices are high, you can afford less of the asset. But when prices are low, you can afford more. When the market recovers, you benefit from having bought more shares at the lower price. Please note that using this strategy will not always result in a profit or necessarily protect you from falling prices. Diversify Your Crypto Portfolio With the crypto landscape so volatile and diverse, managing risk in a portfolio is critical.

That essentially means position sizing and diversification — as with any other kind of investment. One of the best pieces of investment advice we have heard recently comes from Ari Paul, co-founder and CIO of Blocktower Capital, a crypto and blockchain investment firm. So, if you think bitcoin is too risky, you could size it at 0. Too risky is never a reason not to own an asset. If something is positive expected value, risk adjusted, and relatively low correlation, you have to own it.

That means we expect stable to falling prices. For in general, we think recession risks pose a risk to ETH and so now might not be the best time to buy ethereum if you have a medium-term outlook. We think ethereum is a good long-term investment for the next one to three years and are bullish overall.

Since then, Ethereum has experienced several major bull runs. Since then, ETH price has been volatile and generally gone downwards. As with all investments, the value of ethereum can rise as well as fall. We recommend small allocations and diversification of your portfolio. Never invest what you cannot afford to lose.

Necessary dr crypto topic

As a result, people lost trust in banks so much that they used a new system of managing their assets, one which does not include any middlemen. Satoshi Nakamoto Satoshi Nakamoto invented the first-ever cryptocurrency, Bitcoin. It is originally a peer-to-peer, decentralized, digital cash system but turned out even better as a new form of currency.

The Double Spend Problem Back to the same problem of making sure that people have money for their purchases, Bitcoin addresses it differently by making transactions public without revealing any personal data. Through blockchain technology, it would be easy to detect if someone is using money illegally. Not entirely restricted to money, you can send files, use services, and exchange values, without having to go through third-party organizations like banks.

Money transfers will be faster and cheaper. As opposed to relying on centralized banks to manage transfers, Bitcoin transfers directly from person to person. What Is Blockchain Technology? Blockchain is the technology behind cryptocurrencies. It enables transparency on transactions.

Blockchain refers to digital information in a database. When a transaction occurs, it is verified, or stored in a block. Rather than actual people, however, a network of computers verify the transactions. This makes it even better because while transactions can be viewed and distributed, they cannot be edited, even by the Bitcoin creator.

But sticking to the subject, there are three popular ways to make money through cryptocurrency which you can consider as a form of investment. Mining works by having your computers solve equations to make up the blockchain network, and in turn, rewards you with cryptocurrency. Day Trading is another way of earning which benefits from the drastic changes in rates that occur in the cryptocurrency market. In comparing Ethereum vs Bitcoin, a lot of questions have to do with whether they are worthy of investments.

Investing In Bitcoin Bitcoins are your money in digital form. People buy Bitcoin to have other venues for storing money other than in the bank. More commonly, people buy Bitcoin in hopes of the value increasing — giving them a profit since they bought it at a lower cost.

Most companies today allow equity, which you cannot purchase using traditional currency but through an ICO initial coin offering. In the industry of cryptocurrency, this is equivalent to an IPO. You can use Bitcoin as a payment service as long as the company or business that you buy products with accepts it.

While it can be used as a currency to buy products, Bitcoin can also be used as an investment to keep for long-term gains. Bitcoin Mining is validating transactions on the blockchain network. These are in the form of math puzzles that miners solve and in exchange, it pays them with Bitcoin. Ethereum is a fairly new technology that was launched in by Vitalik Buterin, a programmer in Toronto, Canada. With 1. She joined TikTok and started her journey down the crypto rabbit hole during the end of her last semester of college, circa April-May Some were interested in her astrological predictions while others were simply curious about the Bitcoin and Ethereum ecosystems.

Read more: How Crypto Traders Are Weathering the Bear Market To be clear, she does not think crypto's price action is actually caused by the position of certain planets in the solar system, and she does use technical analysis in forming her trading strategies. For technical analysis, Altman uses simple indicators such as support and resistance levels as well as moving averages.