Explaining the Differences Between Ethereum and Bitcoin

Business » FINANCE | June 26, 2021, Saturday // 18:07
Bulgaria: Explaining the Differences Between Ethereum and Bitcoin pixabay.com

Thanks to the fact that cryptocurrencies hold many advantages over regular payment methods, their popularity is rising each day. Studies show that there are as many as 7 million crypto users around the world. Even though governments do not have specific regulations concerning cryptocurrencies, people are more than open to trading with them.

At the moment, the two cryptocurrencies that dominate the market are Bitcoin and Ethereum. These two digital assets may seem like they are similar to each other, but the truth is that there are quite a lot of differences between them. That is exactly the topic that we are going to discuss in this article. But, before we dive into the details, let’s see where can you trade Ethereum and Bitcoin.

Trading Ethereum and Bitcoin

The one common thing that these two cryptocurrencies have in common is the marketplace where you can trade them. Trading sites have become the best platforms where traders can buy and sell Ethereum and Bitcoin.

The reason why are they so popular is that they can be accessed at any time and place. Thanks to the fact that trading sites utilize the latest HTML5 technology, they can be accessed from any mobile and desktop device. The only condition for you is to have a stable Internet connection.

After you access trading sites, you will be asked to register if you want to use their services. Fortunately, the process of registration is very fast and simple. The last step involves verifying your account and choosing a preferred payment method.

After that, you will be free to trade with any of the featured cryptocurrencies. One of the most reputable platforms that support Bitcoin and Ethereum is the Yuan Pay App official website. This site has a high profitability rate and if you are trying to sell your assets, it will connect you with thousands of buyers from every part of the planet.

It is worth mentioning that if you are planning on trading with Bitcoin, you have one additional option, which is Bitcoin ATMs. But, there are not a lot of people that use their services because they are hard to reach and charge high fees.

Now, let’s take a look at the differences between these two cryptocurrencies.

The Differences Between Ethereum and Bitcoin

The first obvious difference is that while Bitcoin is just a cryptocurrency, Ethereum is a whole network that consists of three parts – EVM, DApss, and Ether. Ether is the cryptocurrency itself. Thanks to this fact, the transactions made on the Ethereum network may contain so-called smart contracts and thus have executable codes. On the other hand, the data on Bitcoin’s network is used only for recordkeeping.

Next up, we have mining. As you know, mining is a process in which crypto users create blocks and update the blockchain of a certain cryptocurrency. Bitcoin mining is a bit more complicated as it takes around 10-20 minutes for one block to be mined. Ethereum’s average mining time is 10 seconds, which is much faster. But, that comes at a cost as studies have shown that Ethereum uses up more electrical energy.

Finally, we have the limit on cryptocurrencies that are released into their respective network. When Bitcoin was created back in 2008, it was capped at a total of 21 million units. Studies show that 99% of all Bitcoins will be mined by 2032 and all Bitcoins will be mined in 2140. On the other hand, Ether is limited to 13 million units per year.

Conclusion

The bottom line is that Ethereum and Bitcoin shouldn’t even be compared as their primary goals is not the same. Bitcoin’s purpose is to be an alternative money service, while Ethereum’s goal is to build its own network.

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