While Bitcoin and Ether are two of the most popular cryptocurrencies, they have few similarities.
And with all these differences come various differences of opinion when asking which is the better long-term investment of the two.
There are several reasons to be bullish on each one, which is why the two are far and above the rest of the cryptocurrencies when it comes to popularity.
Is Ether is a better investment than Bitcoin today? Here are the most important factors to consider,
The first factor to consider about Bitcoin is that it’s strictly a currency. Bitcoin was created as a digital currency as an alternative for consumers who are looking for a way around using fiat currencies.
The cryptocurrency has many advantages, which is why it’s so popular during this cryptocurrency revolution.
In addition to being the coin with the highest market cap, it’s also one of the main trading pairs for many altcoins. However, over the last year, Ether has gained considerable popularity as another main trading pair as well.
Plus, in addition to all the benefits Bitcoin offers users, it’s also a popular asset for those who are looking to hedge against inflation. This is especially important in third-world countries, where finding assets that can serve as a store of value is crucial.
Despite all of these benefits of Bitcoin, though, there are some drawbacks, especially because it was the first cryptocurrency to be created.
There are considerable limitations when it comes to doing lots of transactions as they can be costly and sometimes take a long time to complete.
Ether, on the other hand, has a lot of advantages when compared to Bitcoin. However, Ether is also expensive to spend and use.
With that said, a lot of the increase in costs of sending Ether is caused by its busy network, which ultimately helps boost Ether’s value.
What’s important to know about Ether and why so many are so bullish on the cryptocurrency is that it’s the coin that powers the Ethereum network.
So the more popular the Ethereum network is, the more demand there will be for Ether tokens. Not to mention that the Ethereum network can do far more than Bitcoin.
With the rapidly increasing popularity of decentralized finance projects and the rise of NFTs, Ethereum’s network will continue to see an increase in the activity of users.
This is why, in my view, Ether is a far better long-term investment than Bitcoin.
Stocks to buy
Whichever cryptocurrency you’re more bullish on, there are several ways to gain exposure. One of the easiest and most straightforward ways to gain exposure is through an ETF.
For example, you could consider the CI Galaxy Bitcoin ETF. Or, if you’re more bullish on Ether as I am, the CI Galaxy Ethereum ETF (TSX:ETHX.B) is an ideal way to gain exposure to the high-potential cryptocurrency.
These funds have a tonne of benefits for investors. As I mentioned before, buying the highly popular cryptocurrencies of Bitcoin and Ether can be quite expensive sometimes.
Not only that, but it can be quite complicated to buy cryptocurrencies, especially because you don’t ever want to leave them sitting on an exchange where you have no control over them.
This is why these ETFs are ideal for many investors. You don’t have to worry about buying the coins, sending them to a wallet, or even holding the coins yourself. Instead, that’s all done for you and all for an ultra-low management fee.
So if you’re bullish on Ether or Bitcoin, they are two of the best investments you can make today. And with innovation in markets over the last few years, there are tonnes of easy ways to gain exposure.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.