Crypto is becoming increasingly popular as a new form of investment. Among the various crypto, Bitcoin (BTC) and Ethereum (ETH) have emerged as two of the most prominent and widely traded ones. While both Bitcoin and Ethereum share similarities in terms of being decentralized and built on blockchain technology, they differ significantly in their underlying philosophy, purpose, and design. We will explore the key differences between Bitcoin and Ethereum and highlight what sets them apart.
Prelude — BTC and ETH:
Bitcoin (BTC) was the first crypto to be introduced, operating on a decentralized network that allows for secure and anonymous transactions. Ethereum (ETH), on the other hand, was introduced in 2015 and is a decentralized platform that enables the creation of decentralized applications (DApps) and smart contracts.
Ethereum also has its crypto Ether (ETH), which is used to facilitate transactions within the Ethereum network. While both cryptos have their unique use cases, Bitcoin is primarily viewed as a digital asset, while Ethereum is seen as a platform for building decentralized applications. While ETH can also be used as a medium of exchange, the primary focus is to enable developers to build decentralized applications on top of their blockchain.
The Technology Behind:
Bitcoin and Ethereum both use blockchain technology, but they differ in their approaches to transaction processing. Bitcoin uses a consensus protocol known as proof of work (PoW), which allows network nodes to agree on the state of all information recorded and prevents certain types of attacks on the network. It restricts the number of transactions that can be processed per second. A cryptographic hash function (SHA256) that generates a 256-bit signature for a text is used in Bitcoin proof-of-work and uses two hash functions simultaneously.
Ethereum moved to proof of stake (PoS), a set of interconnected upgrades, which makes Ethereum more secure and sustainable. Ethereum uses a more advanced technology called the Ethereum Virtual Machine (EVM) that allows for faster transaction speeds and more complex smart contracts. This makes Ethereum more suitable for developing and running decentralized applications. BTC is more widely adopted than ETH, but ETH is rapidly gaining ground in the decentralized finance (DeFi) space.
Market Capitalization, Price of BTC & ETH:
Bitcoin is currently the most prominent crypto in terms of market capitalization, with a market capitalization of over $ 1% trillion, while Ethereum has a market capitalization of around $ 400 billion. The price of BTC is also significantly higher than that of ETH. However, BTC is also more unpredictable than ETH, so its price can fluctuate rapidly and unpredictably. Additionally, Bitcoin is more commonly accepted as a form of payment by merchants and individuals than Ethereum.
Both have strong security measures in place to prevent hacking and fraud. The BTC price may have changed to reach around $32000 & ETH price around $2000, by the end of 2023. While both cryptos have seen significant growth in recent years, BTC remains the dominant player in the crypto market.
How to invest in BTC & ETH:
With more exchanges offering a secure way to buy and sell cryptos, demand for them has increased. KoinBX, a global crypto exchange, provides an easy and simple way to buy, sell and trade a variety of cryptos using Android and iOS apps.
Follow the steps to buy, sell, and trade BTC, and ETH with KoinBX.
1. Signup with KoinBX.
2. Create your account to buy, sell and trade multi-cryptos, free of cost.
3. Complete the KYC verification and link your bank details.
4. Deposit Fiat currency for adding funds to your KoinBX wallet.
5. To buy, sell, and trade BTC with INR & ETH with INR.
Conclusion:
KoinBX Crypto Exchange allows users to link their bank account to deposit and withdraw funds instantly, 24/7 support, high liquidity, minimal trading fees, and a great referral program. Their goal is to provide a user-friendly platform with a hassle-free trading experience for users worldwide. To trade anywhere, anytime with the great trading experience with the KoinBX Android and iOS app.
