These days plenty of crypto coins are available for purchase. As a result, an ongoing debate takes place among investors on how to construct the most profitable crypto portfolio under such circumstances. At first sight, you might think that most crypto investors are risk-oriented and focus on the incredible potential returns. At the same time, one of the most effective crypto strategies is to invest as little as $1, but on a regular basis in top-performing cryptos and earn a substantial return. Let’s illustrate this theory through the analysis of BTC and ETH price dynamics.
Which Coin to Choose for Staking ETH or BTC?
If you analyze the dynamics of BTC prices for the last 5 years you’ll see that regardless of its spectacular crash in 2017, it still remains one of the most stable currencies. Actually putting $1 a day in BTC could bring you 12X return in 5 years. Like James Todaro illustrated in his Twitter, the total amount of investment reaching $1850 could result in a $12000+ return, which is not a bad sum. A similar situation is with ETH, in case you’ve invested $1 per day for 4 years you’ll get around $9000 from a $15 initial investment. Someone might say that BTC is a better place to put your money in, but the history of the crypto market knows that previous earnings do not guarantee long-term progress. There are other factors to take into account.
How to Choose Cryptocurrency for Purchase?
At the time you choose to make any crypto a part of your portfolio it’s time to analyze a bunch of factors starting from the technology that lies behind this project and ending with its growth potential in the existing market conditions. For example, in the Ethereum and Bitcoin battle, there are frequently no winners or losers. From one side Bitcoin has a far better position as it works as a reserve currency. On another side, Ethereum has larger potential due to its innovative technology.
Bitcoin and Ethereum can’t be compared in full as their roles are quite different and they serve various purposes. Ethereum’s purpose is to supply and run decentralized smart-contracts powered by blockchain technology that doesn’t go offline and can’t be altered. It provides users with a specific programming code and place to create the applications. Bitcoin’s purpose, however, is essentially different. It is a decentralized store useful — a peer-to-peer digital currency, used for financial transactions. It eliminates the necessity for third parties in payment technology.
Which Coin to Choose ETC or BTC: Final Remarks
In conclusion, the first differences that separate ETH from BTC are their purposes and their concepts. Also, Ethereum runs smart contracts and Bitcoin doesn’t, concentrating on manual payment technology. It’s vivid that there are benefits to using both technologies and exchanging even 1 eth to btc, when the situation calls for it. Bitcoin features a lower coin supply and its liquidity is higher. On the contrary, Ethereum outperforms with technological development and provides more use cases. Therefore, the minded investor will hold both cryptocurrencies in his portfolio, investing in them in similar proportions on a regular basis.
The good strategy is to use BTC for larger purchases (anything over $300) and as a savings platform. The ETH could be used for smaller, daily purchases; and as an additional savings platform. The overall strategy would be to combine holding with active trading, transferring any profits to ETH when the time is right; and storing excess ETH into BTC when the time is right for that transfer. For that purpose, you’d have to choose a trustworthy trading platform, where you could perform your transaction on the regular basis.For any question type in the comments beloww.