When it comes to cryptocurrencies, Bitcoin is the name on everyone’s lips: it dominates the market. But biggest doesn’t always mean best! Ethereum is the most popular second-generation cryptocurrency on the market, and the experts at learncrypto.com suggest that, for some traders, it poses a smarter and easier to use alternative. Here we will assess the advantages of choosing Ethereum, and look at its benefits in comparison to other types of cryptocurrencies:
The Size of Ethereum’s Market Share
As mentioned above, Ethereum is the second largest cryptocurrency available and it is the largest and best known of the open-ended decentralized software platforms that provide cryptocurrency. Because they are the two largest cryptocurrencies, it is natural for Bitcoin and Ethereum to be compared, but it is important to note that, in terms of market share, Ethereum is considerably smaller than Bitcoin. The market cap of Bitcoin stands at $700 billion, whilst the market cap of Ethereum is around $287 billion: there can be no doubt that these are both significant sums, but it means that Ethereum’s business is around a third of the size of Bitcoins. Whilst both are huge businesses, Bitcoin still dominates the market.
How Does Trading with Ethereum Work?
In terms of buying Ethereum and adding it to your cryptocurrency wallet, the process is just the same as buying any other kind of cryptocurrency. Ethereum is a popular choice for investors, because since it was launched in 2014, its value has grown considerably. As an example of this, if you had invested just $1,000 in Ethereum in 2015, and then left that investment without trading or spending it, the value would now be a staggering $2.23 million. It’s important to note that you are guaranteed those same returns: cryptocurrencies are notoriously volatile, and that is just as true of Ethereum as it is of Bitcoin. Before you log on and add Ethereum to your cryptocurrency wallet, you need to understand the risk factors, and decide how much of a risk you’re prepared to take.
The Benefits of Choosing Ethereum
Whilst there are pros and cons of using almost every type of cryptocurrency on the market, and it is important to conduct your own research to choose the right cryptocurrency for you, here are just some of the benefits of making Ethereum your first choice:
- Ethereum operates on an open-source platform, and the system was originally developed to offer ledger technology services. In short, that means that the Ethereum platform is much more technologically advanced than many other platforms, including the natural point of comparison, Bitcoin.
- Ethereum offers more services to its users than any other cryptocurrency, which is particularly appealing to businesses and investors. As well as buying and trading the currency, users are also able to take advantage of lending and banking services, for example.
- Ethereum is easier to acquire than ever before, and it can also be easily traded for other cryptocurrencies, so if the market value begins to drop, or if you simply change your mind about your investment, you can jump to another ship fairly quickly.
- Ethereum is a community platform: all decisions about its future are made by the community that owns the currency. This means that they platform couldn’t be taken over by someone with nefarious intent, except in the unlikely event that they were able to secure 51% of the world’s Ethereum.
- Finally, and perhaps most importantly, there is more accountability when you are trading with Ethereum, because decentralisation and anonymity do not form a part of its core values.
