You’ve most certainly heard of Bitcoin by now. If not, you’ve either been living on an island or trapped under a very large piece of furniture, as this cryptocurrency has had people abuzz for years. Cryptocurrency is a digital currency that uses encryption techniques to regulate the generation of currency and to verify its transfer of funds. Here’s the kicker—it operates independently of centralized banking, which makes it appealing to those who have been mistrustful due to breaches in privacy. Bitcoin is the biggest and most well-known of the cryptos, having been invented in 2009 by a man who goes by the alias Satoshi Nakamoto. There are plenty of other altcoins giving Bitcoin some competition, with the biggest competitors being Bitcoin Cash and Ethereum. But after what many are calling a bubble that burst this past December, you might be wondering if it’s still a good idea to invest in the big coins. We explore those frequently asked questions about Bitcoin and Ethereum below.
No Bits About It (Sorry, Had To)…
While the crypto market, in general, is currently down, expert say it’s likely to come back. Bitcoin has risen and fallen and risen again. In sum, there’s no denying the crypto market is a volatile one, so if you don’t have the stomach for that, this might not be your type of investment. An entrepreneurial spirit is a must in the crypto world. But as far as missing your window to invest in Bitcoin, experts say that isn’t so. As this article by the Daily Beast notes, “Investors have experienced a roller coaster ride that shows no signs of slowing down just quite yet. The current state of Bitcoin is on the up and up, and while no one can quite explain why, it’s a great time to educate yourself on how it all works.” And although it has had its ups and downs just as with most investments, the article goes on to note,. “Bitcoin’s performance speaks for itself: it’s outdone any asset or stock you might have otherwise invested in.”
As with everything, the more you know, the better. Study the market. Take online courses on these investments. Immerse yourself in the crypto world so you can be comfortable with riding the wave that goes with investing in Bitcoin. That doesn’t mean to throw caution to the wind though, either. Make sure you’re investing an amount you’re comfortable losing, just in case. You can buy them from coinmama, and you can make sure you’re well informed by reading a coinmama review before you buy. In the end, you might just have to take the risk. As the Daily Beast article points out, a $1,000 investment in Bitcoin in 2011 would be worth $36.7 million now. Hurts a bit, doesn’t it?
What About Ethereum?
Ethereum has given Bitcoin a run for its money—in every sense of that term—in the last year. In fact, many companies have started using Ethereum for their transactions. Many of these companies have seen the value in this for staying afloat during turbulent times.
In order to compare them, however, you have to understand the difference, and it’s fairly complex.
This CollegeInvestor.com article attempts to explain:
“… Bitcoin uses a technology called blockchain specifically for conducting monetary transaction—it’s a straight currency. Ethereum uses blockchain technology to allow the creation of applications that can be executed in the cloud, can be protected from manipulation, and much more…”
Ethereum uses a token called Ether for transactions, which is a lot like Bitcoin. It’s the monetary value of Ethereum. So what’s interesting to note is that Bitcoin was designed to be a currency, whereas investors have actually become more interested in the technology surrounding the Ether in regards to investment. A number of apps have resulted from Ethereum, and many financial companies have seen the value in these. A lot of investors say this is a space to watch. Another Ethereum benefit is that it trades for quite a bit cheaper than Bitcoin. Keep in mind, though, that you need a digital wallet to invest in Ethereum, as it doesn’t trade on any major stock platform.
Getting down to the brass tacks of whether it’s too late to invest in Ethereum, we definitely don’t think so. It actually shows even more promise than Bitcoin, as companies are using it as a building block.
Of course, the choice ultimately comes down to you as to whether to invest in Bitcoin, Ethereum, or other altcoins. But one thing to leave you with is the old adage, “With no risk, comes no reward.”
