Should i trade with btc or ethBTC/USD vs ETH/USD - A Comparison Guide: Which Is Better?
Data from Glassnode shows that the mean of ETH gas used has been lowering on the back of the rally, and formed a downtrend. From that perspective, there may not be as many transactions as we thought. 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.
These fees go to the miners who then validate transactions and place them into a block. Ethereum network uses the concept of gas, priced in ETH , instead of transaction fees. Every interaction with the Ethereum blockchain requires a certain amount of computational effort. Gas is used to pay for that computation. Simple send orders, for example, require little effort. Complex interactions with smart contracts, on the other hand, are very gas-intensive. So the cost of an Ethereum transaction depends on its complexity and the gas price, which is set by the miners.
Block size is important in comparing Bitcoin vs Ethereum. It plays a key role in determining the transaction costs, confirmation times and scalability of a blockchain. Blocks on the Bitcoin network are currently 1 MB. Disagreements over the block size eventually led to the creation of Bitcoin Cash as the fork of Bitcoin.
Bitcoin Cash increased the block size to 8 MB, while Bitcoin maintained its block size at 1 MB and implemented the Segregated Witness SegWit soft fork to increase the number of transactions that can fit into a block.
On the Ethereum network, the block size is measured in gas and each block is limited to The gas limit was increased as recently as June , from 10 million, to alleviate the stress on the network, increase processing capacity and reduce fees.
The sell-off coincided with a broad decline in asset prices, from stocks to gold , partially attributed to a rally in the US dollar. So, what are some of the recent news and developments related to Ethereum and Bitcoin? For quite some time, the main focus of the Ethereum community has been on the PoS migration. It should be able to address the scalability concerns and high transaction fees of the network. The most recent estimates put the launch of the Beacon Chain at the end of or beginning of More recently, the emergence of decentralised finance DeFi applications have pushed transactions and fees on Ethereum to all-time highs.
Not only that, but the total amount of gas used on Ethereum is more than double the peak of level, while the price of gas is almost five times higher. Another exciting development has been the introduction of tokenised Bitcoin on the Ethereum network. Remember, the two projects operate on different blockchains that are not compatible. This represents just 0.
As always, predicting asset prices is a thankless task. Instead, we can look at the fundamentals of both networks to assess their future potential. BTC , for instance, is underpinned by strong institutional interest and limited supply acts as an inflation hedge, ever more valuable in the world of easy monetary policies. ETH , on the other hand, supports a growing ecosystem of decentralised applications and the transition to PoS will further cement its position as the only meaningful smart contracts platform.
On fundamentals, both cryptocurrencies are well-positioned for future growth. According to a stock-to-flow price model, BTC is closely following the trend of the previous two halvings.
So, which coin should you invest in right now, Ethereum or Bitcoin? Overall, both cryptocurrencies could be attractive investment opportunities and have a place in an investment portfolio. But as always, investors should exercise caution and do their research before investing in any crypto project.
There are several ways to invest in Bitcoin or Ethereum, as well as other cryptocurrencies. A CFD is a derivative product where a broker agrees to pay a trader the difference in the value of an underlying security between two dates; the opening and closing dates of the contract. You can either hold a long position, speculating that the price will rise, or a short position, speculating that the price will fall.
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The first table represents values on August the 7th, What About the Flippening? Bitcoin Exchange Guide News Team. Add a picture. Choose file. Add a quote. Submit Cancel. Subscribe Replies to my comments All comments. Sorry, you must be logged in to post a comment. Sign Up. Email Error: please, enter correct email. Password Error: please, enter password. Forgot Your Password?