Bitcoin vs Ethereum: What’s the Difference and Which Should You Invest In?

Cryptocurrency has taken root in Nigeria as a big topic of discussion. Whether it is small business people or students in Abuja, everyone is discussing the topic of digital money. Some are saving with it, some are attempting to invest and others are out of curiosity. In case you have been reading about Bitcoin and Ethereum and trying to understand what they are, how they operate, and which of them you should invest in, then this write-up is just right for you.

It is time to begin with the definition of what cryptocurrency is. Cryptocurrency in simple words is money that is present online. It exists and yet you cannot have the feel of naira notes. It has the potential to be used in sending and receiving money, making purchases online, or as a method of storing your wealth. No bank or government is required to make it work. It operates on special kind of technology referred to as blockchain that makes each of the transactions safe and open.

The most common and the first cryptocurrency is Bitcoin. It was developed in 2009 by an individual named Satoshi Nakamoto. Who is it, none of us can tell. The concept of Bitcoin was very basic, to form money that no government could regulate, it would not be subject to inflation and people in all parts of the world could use the money. It has made Bitcoin a digital gold over the ages. Individuals purchase it and hold on optimistically that it would rise in value later on. It is primarily used as a store of value and as a means of guarding money against inflation or collapse of money. It is not possible to ever yield more than 21 million Bitcoins in the world. Scarcity is the reason why the number is valuable.

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Ethereum has later entered the scene a few years later in 2015. A young man, Vitalik Buterin developed it. Etherum is not simply the money like in case of Bitcoin. It is similar to the internet computer. The Ethereum can be employed by developers to develop apps, tools, games, and even digital contracts known as smart contracts. These smart contracts are designed to operate similar to any regular agreements, except that they are coded and will run automatically as soon as the conditions have been satisfied. Ethereum has been used to build such different things as NFTs (digital art and assets), DeFi (decentralized finance platforms) and even crypto-paying games online. Whereas Bitcoin is termed as digital gold, Ethereum is termed as digital fuel. It drives a lot of activities and projects within the crypto world.

Bitcoin and Ethereum have certain differences. Bitcoin is primarily an asset to be stored and held which can be compared to savings. Ethereum is to create and to fuel things, such as technology. Bitcoin is less convenient in the sending of money as Ethereum is flexible and quicker. Bitcoin is limited in number and therefore a rise in its value tends to occur. The Ethereum supply has no limits, and the blockchain is becoming updated more and more. Bitcoin is stable more than Ethereum which is innovative.

And the big question now, which should you invest in as a Nigerian? This will be your choice of what you want. Bitcoin may be a better option when it comes to keeping your money safe due to the inflation risks or saving up your future. It is hard-hitting, it is universal, and is something regarded as a long term material. With the manner the naira is presently losing value, many Nigerians are using Bitcoin as a store of their money. And when you wish to know or are willing to invest on the future of the digital systems,

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One of the misconceptions is the idea that cryptocurrency will make one rich fast. Such an attitude can get you into scams. There are many propounded fake crypto websites with fake investment and social media fraudsters. Be careful. Never purchase on an unknown exchange and it is always advisable to use a reliable exchange like Binance, Luno or Quidax. And the last thing you should never keep your crypto on an exchange! And be smart because the government of Nigeria has not yet fully embraced crypto, hence you must dig deep to learn more about the risk and then jump in.

Both ethereum and Bitcoin are robust, and they are used differently. Bitcoin is a fort house and unlike in a bank, you keep money in the house and wait to grow over a long period of time. Ethereum is such like a business idea, it can either rise very quickly or fail depending on the project. Some intelligent investors invest in both thus they derive security of Bitcoin, and the growth aspect of Ethereum.

The point is, you have to learn first at the end of the day. Don't rush. Read, question, observe news reports and have discussions with those that have more knowledge about it. You should have the knowledge of finance rather than fear or greed.

The two cryptocurrencies are bitcoin and Ethereum. Bitcoin can be described as a digital gold to save value and safeguard the wealth. Ethereum is described as electronic fuel through which apps, agreements and online tools are constructed. Bitcoin is fantastic as a type of savings, Ethereum is fantastic as a type of construction. They are both good investments, at risk. Be small, be knowledgeable and do not pursue quick money.