Bitcoin or Ethereum. What to buy? Best place to buy Ethereum in Canada

BITCOIN OR ETHEREUM. WHAT TO BUY? BEST PLACE TO BUY ETHEREUM IN CANADA

Cryptocurrency has been on a tear recently, as government spending has flooded the financial system. That’s helped cause a run-up in popular digital currencies, including Bitcoin and Ethereum.

But the move is also fueled by rising speculation that cryptocurrency is the “must catch” wave of the future. Here’s how you can find the best place to buy Ethereum.

While cryptocurrencies typically have a few things in common, what are the differences between these two popular crypto? Quite a lot actually, and here are some of the biggest distinctions.

Cryptocurrencies are built using what’s called block chain technology, which uses a distributed ledger to produce, track and manage a digital currency. Think of it like a running digital receipt of all the transactions in the currency, including a list of who owns which currency and how much.

This “receipt” is being constantly verified by a decentralized network of computers, helping to prevent fraud and ensuring the proper functioning and accounting of the currency.

Cryptocurrency is “mined” by powerful computers called miners that perform complex math calculations to create coins. They also earn coins by processing transactions of the currency.

Thousands of cryptocurrencies exist, and literally any number could be created using similar blockchain technology.

What purpose does cryptocurrency serve?

Each of these cryptocurrencies was created for a different purpose. Notably Doge coin was a satire on the rising popularity of Bitcoin. Meanwhile Bitcoin and Ethereum were created for more serious purposes, including actually facilitating transactions or acting as a store of value.

Market capitalization The market capitalization of each consists of the total extant coins multiplied by the current trading price, and there’s a wide divergence.

Bitcoin is the largest, with Ethereum trailing a distant second.

While these currencies may be among the most popular for traders, Bitcoin is the one that’s emerged among the mainstream. It’s becoming easier to access Bitcoin, with multiple ways to purchase or store the currency that piggyback on existing apps such as Netcoins.

Coin issuance It’s also useful to note how many coins can be issued in each cryptocurrency. Many traders have flocked to Bitcoin because of its hard limit on issuance, just 21 million. If money continues to flow into Bitcoin and demand rises, this fixed limit virtually ensures that the price will rise over time. While that may be good for traders, it makes Bitcoin harder to use as a currency.

In contrast, Ethereum’s issuance is unlimited, but it has a fixed issuance schedule, which may slow the production of new coins.

To conclude it all, If you’re considering trading cryptocurrencies, it’s valuable to understand that they’re not all created equal. Some features such as Bitcoin’s limited issuance may make a currency more attractive than others, at least over a longer period of time.

But in the short term cryptocurrency is driven by sentiment, so even something created as a joke and with unlimited issuance may rally hard if a swell of interest sweeps in.

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SOURCE CREDIT: https://medium.com/@ bitcoinwalletcanada/bitcoin-or-ethereum-whatto-buy-best-place-to-buy-ethereum-in-canada-3 389d80524e1

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