Bitcoin and Ethereum are the most popular cryptocurrencies in the market, and in the last year both have had significant ups and downs. Despite the massive drop that both experienced recently, it can be said that the price of both has increased by a good percentage.
When the price of a cryptocurrency falls, it can be a good opportunity to buy and invest in it, but if your funds are limited when it comes to investing, you should know which of the cryptocurrencies will give you the most for your money.
That is why today we tell you more about the investment risks of the 2 most important cryptocurrencies there are, in this way you can analyze and decide which of the two is a better option for your investments.
Bitcoin Risks
Like any cryptocurrency, Bitcoin is also speculative, and although many companies use it, it is not known if it will eventually be widely accepted. If not generalized, it can lose its value and become useless.
Another of the problems that it has and I think it applies to both currencies and all cryptos, are privacy problems. No Bitcoin transaction is anonymous, so people’s information and data can be tracked easily.
Although this problem can be mitigated by using a VPN program that allows anonymous and secure browsing, and makes it impossible to track your data and information over the internet. Among the main free VPNs, you will always find one with specific functions to protect your cryptocurrency transactions.
Finally, another of the drawbacks of using Bitcoin is the large amount of energy that its mining process needs. That energy expense is beginning to worry regulators and investors, so much so that they may suspend Bitcoin as a form of payment.
Ethereum Risks
Something that no cryptocurrency can escape is speculation. This blockchain is not as popular as Bitcoin, so it is more difficult for it to become a means of payment among merchants, who only accept one form of cryptocurrency and it is usually Bitcoin.
Although blockchain technology has represented a favorable change in the financial and investment sector, there are still those who refuse to believe that it is so revolutionary. This can be a drawback for Ethereum since its advantage lies precisely in its blockchain technology.
Which one should I choose?
Honestly, it’s up to you because at the end of the day, it all depends on the amount of money you have available to invest and the type of investment you want to make. Keep in mind that both are high-risk investments, so make sure you’re willing to face the levels of risk and volatility in either case.
Bitcoin is a “safer investment” in the sense that it is most commonly known, and you will be able to find those who receive it as payment, as well as people willing to exchange it. However, in the long term, Ethereum has more growth opportunities, so if your investment capital is low, it would be the ideal option for you.