Should i trade with btc or ethEthereum (ETH) vs Bitcoin (BTC): A Supercomputer or Cryptocurrency?
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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Start trading today! Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information hereinafter "Analysis" published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:. Leveraged products including contracts for difference are speculative in nature and may result in losses or profit.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Contact us. Why Us? Financial Security Scam warning NB! Login Start trading. Choose your language. October 25, UTC. Reading time: 9 minutes. Programers and companies are able to use the network and create decentralized applications dApps.
With Bitcoin, enterprises and individuals can send and receive funds, or just use the currency to hedge against economic crisis. Comparing both networks in this way, we can assume that Bitcoin and Ethereum are not rival currencies, but instead different networks created for different purposes. For example, developers on the Ethereum network have created collectable cats CryptoKitties that can be exchanged for ETH. At the same time, there are different decentralized exchanges that allow users to buy and sell ERC currencies based on Ethereum.
It is also important to mention that Ethereum has people working on a wide variety of projects like ICOs , layer 3 protocols, etc. Bitcoin is different. The most famous cryptocurrency has people working in just one important topic: Bitcoin itself. Another interesting point to mention about Bitcoin and Ethereum is the speed of the developments that took place on both networks. Instead, Ethereum did it at the end of , just two and a half years after being created.
The same happens with the market dominance. Bitcoin was growing during more than 7 years to reach current levels, Ethereum was just 3 years to reach such an important position in the market. The same happens with the number of transactions and active addresses. Ethereum will have to do a great work in order to scale, even more than Bitcoin. Why does it happen in this way? Because Ethereum needs to handle more transactions than Bitcoin, which will be quite difficult to achieve without investing in Sharding, plasma, or Casper.
Bitcoin is completely focused in the Lightning Network LN which will allow the network to process an important number of transactions with low fees, and the community is waiting for that. Both currencies can properly grow and scale without one having to harm the other. Having important community developers behind each of these networks is a positive thing for the whole ecosystem and not just for ETH or BTC.
Both currencies have substantially increased compared to 24 hours ago. 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 On the ETH side, calls with strikes seem like a typical bullish setup.
On the other hand, and puts look more like defensive setups, as ETH has been in a rally since mid-May. On the BTC side, calls with strikes also seem like a standard bullish setup, but calls with and strike prices seem even more aggressive.