If you’ve seen the massive rallies in cryptocurrencies over the last few years, you’ve likely thought about investing some money. The industry is well-known for being extremely volatile, making some investors avoid it completely. But for those who have money they can afford to play with or are willing to invest for years, there is value in finding high-quality cryptocurrencies like Bitcoin (CRYPTO:BTC) to buy.
The issue is that cryptocurrencies can have a steep learning curve. Learning about how they work and why they provide value or even have value can be complicated. In addition, even the whole process to start buying cryptocurrencies and transferring them to a wallet where you truly own them can be difficult and time-consuming.
This is why several ETFs and crypto stocks have launched over the last few years. These funds offer investors a simple way to gain exposure to high-quality cryptocurrencies.
Therefore, if you’re an investor just looking to get basic exposure to the massive growth potential of cryptocurrencies, I’d strongly consider an ETF.
Which cryptocurrency ETF should you buy?
Naturally, the most popular cryptocurrency is Bitcoin, so many investors will consider a Bitcoin ETF first. Bitcoin is certainly an excellent investment you can make. While the industry is volatile, Bitcoin is actually less volatile than other altcoins.
Furthermore, because of its first-mover advantage and name recognition, it continues to act as a bell-weather for the entire industry.
However, while Bitcoin and an ETF like the CI Galaxy Bitcoin ETF could be great investments, there are other cryptocurrencies that might even offer more growth potential.
For example, the second-most popular cryptocurrency, Ethereum (CRYPTO:ETH), has several advantages over Bitcoin.
Why Ethereum might be a better investment than Bitcoin
In my view, investors should consider an investment in both Bitcoin and Ethereum since the two cryptocurrencies have differences and don’t necessarily compete with one another. With that being said, though, Ethereum looks like it has more potential to grow.
The key difference is that Ethereum can run smart contracts. This gives it potential as several sub-sectors in the cryptocurrency industry grow, something Bitcoin doesn’t necessarily have.
So while Bitcoin certainly has the potential to grow as a financial payment network, Ethereum has the potential to grow from decentralized finance, the use of NFTs, the popularity of the metaverse, and much more. Plus, many of the opportunities that could attract users on Ethereum’s blockchain may have not even been invented yet.
It’s worth noting, though, that at the moment, Ethereum does have several drawbacks that limit its ability to scale. However, several upgrades are being worked on and the network is due to see these later this year. In addition, there are several smaller blockchains that are compatible with Ethereum where developers and users can go in the meantime while still staying in the Ethereum ecosystem.
Bottom line
Gaining exposure to cryptocurrencies like Bitcoin and others certainly offers a tonne of potential. And the best way to do so is to find high-potential assets and commit to them for the long run.
So over the years, while Bitcoin should continue to gain popularity and grow in price, a blockchain like Ethereum, with so much potential to expand, offers even more opportunities for investors today. Therefore, if you’re looking for the best crypto stocks to buy, I’d certainly look for ones with exposure to Ethereum.
