All in all, both! Bitcoin and Ether offer sufficient volatility and price movement for trading purposes. Traders should keep an eye out for both cryptocurrency pairs and see which one is better suited for trading on that specific day, week or month. Choosing your favourite instrument really depends on your own preferences. Jun 04, · However, it looks like BTC traders have been more long-term bullish on the price, while ETH traders have been more focus on the short-term price . To determine if trading ETH or BTC is better, let's combine our data in a table. By comparing the data, we can say that both assets are attractive for trading, and the volatility for both cryptocurrencies is good. In the first period, Ethereum demonstrated a slightly larger drop than Bitcoin, with a tiny difference of 5%.
Is it better to trade against btc or ethBTC and ETH: Which one is a better buy?
However, there could also be other factors to drive the increase and decline of the balances, such as network security. The number of unique addresses with high balance could especially important. Meanwhile, the number of unique addresses with no less than BTC 10K has rebounded from the lows in late March. Still, it seems relatively low compared to the number in late June, which is at However, we also see limitations on this.
Although the number of BTC addresses with a high balance has been picking up, this data alone is only part of the broader picture. By combining the balance on exchanges number, we may able to see a more comprehensive image. One of the narratives is that the total ETH gas used has reached a new all-time high, meaning more people have been using the network; thus, the price should go up.
ETH prices have touched levels before retracting back to the handles. However, when we look at the mean number of ETH gas used, we could see another picture.
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 You can clearly see the difference when you compare it to Ether, which had its bull sprints here and there, but not as consistently as Bitcoin. All in all, both instruments have moved up a lot, so be aware that there is always a risk of market prices falling due to unexpected news.
Also, the risk of an implosion can never be ruled out either when considering these asset classes. Bitcoin remains the most well-known cryptocurrency and there seems to be no threat of it losing that position. Therefore, the chance that Bitcoin will be able to preserve this status in as well is fairly decent.
The benefit of the leadership role for Bitcoin is that it could attract more investors. Cryptocurrencies in general, but specifically Bitcoin, are perhaps becoming more alluring for bigger investors, perhaps institutional investors as well. Bitcoin is well positioned to receive much of their attention, if is anything to go by, Ether may receive a smaller part of the investments — but that remains to be seen.
It is useful to know the specifics of each cryptocurrency, whether it's Bitcoin or Ether, and feel comfortable with their parameters.
How does Bitcoin work? Bitcoin's emphasis as a peer-to-peer decentralised payment system has been more on security and the process of mining which is how Bitcoins are created. You can find out more about this in our What is Bitcoin? How does Ether work? Ether offers more than just a payment system. According to the Ethereum Project itself, Ethereum is a "decentralised platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference".
There are a number of key differences between the two cryptocurrencies, here's just a couple of examples:. Trading an instrument you like is not a must, but having faith in its long-term potential and design could make it easier for traders to hold on to swing trades and aim for larger targets. This particular factor is very personal and will depend from trader to trader.
Keeping up-to-date with some of the developments within each cryptocurrency will also provide some key information about possible price reactions. The Bitcoin Cash hard fork — away from the original Bitcoin — for instance, did temporarily impact price — so keeping an eye on trends like this can be important. From this perspective, Ether is slightly more stable than Bitcoin, when taking into account the most recent split. In any case, it doesn't hurt to keep an eye on the latest trends in each cryptocurrency and to see whether one of the two offers less risk and more stability.
This can also change from month to month, as trends and news updates in this space continue to come thick and fast. Trading is not only about the fundamentals factor 2 and 3 or long-term potential factor 1 , but also simply about the price action and volatility of a cryptocurrency. This is especially important when trading on lower time frames, for example. Slow moving instruments do not offer interesting trade setups because it is difficult to obtain a profit by entering and exiting if price hardly moves up or down.
Volatility is key as it provides opportunities for traders. Price action is also key: it is important to review Ether and Bitcoin charts and familiarise yourself with the instrument. This is even more valid for short-term charts, where price action can sometimes be quick and unexpected.
Some instruments will also fit your style of trading more naturally. You should always make sure you know how to trade Bitcoin CFDs before trading it with real money.
We recommend signing up for a free Demo account and practising in a real trading environment, with virtual funds. All in all, both! Bitcoin and Ether offer sufficient volatility and price movement for trading purposes.
Traders should keep an eye out for both cryptocurrency pairs and see which one is better suited for trading on that specific day, week or month. Choosing your favourite instrument really depends on your own preferences. Test both of them for a while and see which one suits your own market vision. Cryptocurrencies may be everywhere at the moment, but the very good news is that they're not the only products on offer. Admiral Markets is your perfect partner for trading Forex and CFDs on shares, stock indices, commodities and bonds!
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