Sep 11, · Fundamentals aside, there are plenty of optimistic price predictions for both ETH and BTC. According to a stock-to-flow price model, BTC is closely following the trend of the previous two halvings. The model suggests that BTC could reach $, during this four-year halving cycle. These well-performing traders have chosen to incorporate BTC, ETH, or BNB constituting % in their portfolios. These findings aren’t the first or only findings. And, they certainly won’t be the last ones. Consider this – Investment from institutions has poured in this YTD. Dec 30, · Just keep an eye on the US$ value and trading fees as well. BTC not good for moving between exchanges, I usually trade to LTC or DOGE first, unless the currency I want to trade is listed on both exchanges ofcourse. This doesn't come without risk, but neither does moving in BTC, and that fee can be steep. thegrey, Dec 30,
Should i trade with btc or ethBTC and ETH: Which one is a better buy?
More importantly, though, the Bitcoin and Ethereum networks are different with respect to their overall aims. While bitcoin was created as an alternative to national currencies and thus aspires to be a medium of exchange and a store of value , Ethereum was intended as a platform to facilitate immutable, programmatic contracts, and applications via its own currency.
BTC and ETH are both digital currencies, but the primary purpose of ether is not to establish itself as an alternative monetary system, but rather to facilitate and monetize the operation of the Ethereum smart contract and decentralized application dapp platform. Ethereum is another use-case for a blockchain that supports the Bitcoin network, and theoretically should not really compete with Bitcoin. However, the popularity of ether has pushed it into competition with all cryptocurrencies, especially from the perspective of traders.
For most of its history since the mid launch, ether has been close behind bitcoin on rankings of the top cryptocurrencies by market cap. Your Money. Personal Finance. Your Practice.
Popular Courses. Part Of. Bitcoin Basics. Bitcoin Mining. How to Store Bitcoin. Bitcoin Exchanges. Bitcoin Advantages and Disadvantages. Bitcoin vs. Other Cryptocurrencies. Bitcoin Value and Price. Cryptocurrency Bitcoin. Generally, a higher transaction fee could suggest that the market has a higher demand for conducting transactions. Therefore users are willing to pay more for faster settlements. That also indicates that more people are using the network. We believe that cryptocurrency is a kind of network value asset, which means the more people use and hodl it, the more valuable the asset will be.
If analyzing on-chain activities is like fundamental analysis to equities, analyzing derivatives trading activities could be like statistical analysis. It could provide market participants with a glimpse of how real traders have been positioning their trades. We could find valuable information from that.
We noticed that one of the recent conversations in the crypto community is that the options skew of ETH has turned negative, and it could be bullish for the price. Traders can use these relative changes as a trading strategy. We believe that the IV changes in different options contracts could somewhat suggest the upcoming volatility of the underlying and how traders were anticipating it. We think that traders should consider this alongside with many other factors that could drive the crypto markets.
The way options traders pick the strike prices seems telling us that market has been takinga more progressive view on BTC prices, while the view on ETH has been relatively moderate.
We can see that most of the BTC options open interestwere in the strike price area, while the second and the third most popular strike price wear around and On the ETH side, strikes have been the most popular, while the second and the third most OI were and On the ETH side, calls with strikes seem like a typical bullish setup. On the other hand, and puts look more like defensive setups, as ETH has been in a rally since mid-May.
On the BTC side, calls with strikes also seem like a standard bullish setup, but calls with and strike prices seem even more aggressive. Indeed, the growth in one could help the other receive an impulse and grow as well.
In the same way that it happens with traditional companies, virtual currencies have different functionalities. It is not the same to compare eBay with Microsoft, because both of them have their own characteristics, markets, products and business models.
Bitcoin has been created as a store of value and as digital money. Ethereum, instead, is a development platform that uses Ether as a native currency. Programers and companies are able to use the network and create decentralized applications dApps. With Bitcoin, enterprises and individuals can send and receive funds, or just use the currency to hedge against economic crisis.
Comparing both networks in this way, we can assume that Bitcoin and Ethereum are not rival currencies, but instead different networks created for different purposes. For example, developers on the Ethereum network have created collectable cats CryptoKitties that can be exchanged for ETH. At the same time, there are different decentralized exchanges that allow users to buy and sell ERC currencies based on Ethereum.
It is also important to mention that Ethereum has people working on a wide variety of projects like ICOs , layer 3 protocols, etc. Bitcoin is different. The most famous cryptocurrency has people working in just one important topic: Bitcoin itself.
Another interesting point to mention about Bitcoin and Ethereum is the speed of the developments that took place on both networks. Instead, Ethereum did it at the end of , just two and a half years after being created.
The same happens with the market dominance. Bitcoin was growing during more than 7 years to reach current levels, Ethereum was just 3 years to reach such an important position in the market. The same happens with the number of transactions and active addresses.
Ethereum will have to do a great work in order to scale, even more than Bitcoin. Why does it happen in this way?