The past few months have seen a successive revival of cryptos, with major coins registering massive gains of up to 30%. This resistance to market fluctuations has made cryptos attractive to investors, with many now considering diversifying their portfolios with either Bitcoin or Ethereum.
If you are stuck in the middle or are already holding BTC, here are convincing reasons for you to consider swapping BTC to ETH.
BTC vs Ethereum: Performance in Current Market Conditions
In today’s cryptocurrency market, Bitcoin still leads as the most traded crypto with a massive daily trading volume. Its resilience to bear markets is the main reason why institutional, as well as retail investors, have noticed it.
Unfortunately, there are challenges that come with holding BTC — high energy consumption tops its list of shortcomings. Also, scalability issues cannot be ignored when it comes to mass adoption as its architecture doesn’t seem to allow it to be used as a P2P currency of the masses. Further, micropayments are hindered by the slow nature of its consensus protocol, even though this is a technical security strategy.
Despite its shortcomings, Bitcoin has lined up several solutions, such as Lightning Network, which provides faster and cheaper transactions.
Ethereum, on the other hand, pioneered smart contracts technology, thus allowing blockchain to be more than just a transfer of value. With the most value locked in dApps, ETH recently migrated onto a consensus mechanism that would allow it to validate transactions with a massively reduced carbon footprint. The move is meant to make transactions faster while also introducing chain sharding and other services not previously available.
While each digital currency faces its own challenges, Ethereum seems to be unloading a plethora of solutions that make it more resilient to the prevailing market conditions.
Why Should You Trade Bitcoin for Ethereum?
BTC’s prominence in the crypto market ends with its use as a transfer of value. ETH has diverse use cases that make it more profitable and highly valuable to both short and long-term investors. Here are more reasons why investors are now converting BTC to ETH on popular exchange platforms such as https://godex.io/.
Enjoy Faster Transactions
One of the areas in which ETH outperforms BTC is the speed of transactions. BTC transactions take up to 10 minutes to be confirmed, whereas ETC transactions only take a few seconds. The massive difference in speed is due to BTC limiting its block size to only 1MB and congestion on the network.
The higher transaction speed allows you to perform several ETH transactions than you would if you were to trade in BTC.
Leverage Smart Contract Capabilities
Ethereum can support smart contracts. These are self-executing contracts implemented as soon as the terms of an agreement between two parties are met.
Smart contracts eliminate the need for intermediaries, thus making ETH transactions faster, transparent, and cheaper. Smart contracts also allow ETH to support the development of other applications, which Bitcoin lacks.
If you wish to go greener by promoting a healthier environment, you may want to consider a digital asset that doesn’t consume much energy. ETH’s Proof-of-Stake consensus protocol offers just that. This move makes ETH more scalable and reduces its carbon footprint by almost 95%.
Bitcoin still relies on the Proof-of-Work protocol, which is highly energy-intensive.
Discover DeFi and NFT Ecosystems
The Ethereum network is the pioneer of decentralized applications. By supporting smart contracts, ETH has enabled the development of dApps, given rise to decentralized finance, and grown the NFT ecosystems.
DeFi and Non-Fungible Tokens have become highly profitable unique ventures, providing an alternative niche to investors looking beyond just exchanging currencies at a profit.
Expect Higher Returns
Bitcoin might beat ETH regarding market capitalization, but the latter supports many more functions. The scalability, adaptability, resilience, and diversification of Ethereum have made it potentially more valuable than Bitcoin.
Imagine holding ETH and being able to trade it for other currencies, pay for NFTs with it, diversify your portfolio with DeFi, and make payments for any services rendered on Ethereum. This opens up a wide range of opportunities to profit from as opposed to Bitcoin.
Bitcoin users have solid reasons to keep holding onto the digital currency. However, considering all the advantages that ETH holds over BTC, it would be unwise to reject the idea of converting your BTC into ETH. With ETH, you can enjoy higher transaction speeds, explore DeFI, go greener, leverage smart contracts, and earn greater rewards. If these reasons are convincing enough, then now might be the perfect time to convert BTC into ETH.