Should I Buy Bitcoin or Ethereum?
Hello, investors, in this lecture, I will tell you how you can decide at any moment if you should buy Bitcoin or Ethereum, or any cryptocurrency instead of another.
I will try to make it very clear and easy for beginners or even advanced investors and traders to decide what is better- to buy Bitcoin or Ethereum, or Litecoin, or any other assets on the cryptocurrency market.
Bitcoin price speculations on YouTube, or Reddit, or any other social platform
I know there are a lot of YouTubers, a lot of predictions, a lot of posts on Reddit, especially after Bitcoin broke the $20,000.
There are a lot of people saying that Bitcoin will reach $100,000, it will reach $450,000, it will reach $1,000,000. The truth is, nobody knows that. Nobody knows if Bitcoin will reach $1,000,000. Nobody knows if Ethereum will reach $20,000. It’s a lot of speculation.
All the YouTubers and all the articles that are being written are because they want to get more traffic and they want to make their articles and their YouTube videos sound like, “it will reach a $1,000,000“. Well, we don’t know that.
You cannot find a single video on YouTube or anywhere, or a single post before 2017 with a prediction where someone is saying that the price will reach $20,000, it will crash to $3,200. It will reach $14,000 almost. It will crash because of the coronavirus and then it will break $40,000.
There is no such a video over the Internet, no blog post, no article, nothing like that because nobody knew that and nobody knows what will happen in the future. That’s why I never do such predictions, because I will mislead a lot of my followers, a lot of my students, and I don’t want to do that.
Making decisions on how to buy Bitcoin or Ethereum
So I guess the most important question comes to how you decide at every moment whether it is better to buy Bitcoin or is it better to buy Ethereum, or Steller, or Litecoin, or any other cryptocurrency.
And there is a super easy solution that I use and I find it most appropriate and logical.
For example, let’s say we decide if we should buy Bitcoin or Ethereum. Right now I have the Crypto.com exchange, which I will make on a huge screen, and I have selected Ethereum versus Bitcoin. It’s a pair, Ethereum versus Bitcoin. Now, for the very beginners, Bitcoin price is Bitcoin versus American Dollars.
It’s a pair. Just like with the Forex pairs EURSD, GBPUSD, EURGBP, it is a currency pair. But with cryptocurrencies. Many of the crypto exchanges offer us not just with the US Dollar. But it could be a pair between different coins, for example, Ethereum versus Bitcoin, or Litecoin versus Tezos, or any other pair.
And the current price of Ethereum versus Bitcoin by the time I’m writing the lecture is 0.03 something, which means that you can buy 1 Ethereum for around 0.03 Bitcoins.
So how that would be useful to you to decide whether you should buy Bitcoin or Ethereum?
Now, if you look at the chart from June 2020 until September 2020, so between June 2020 and September 2020, the Ethereum Bitcoin pair goes upwards, which means that the Ethereum is stronger compared to Bitcoin its good to buy Ethereum during this time. Then from September down to December 2020, it was the better choice to buy Bitcoins instead of Ethereum. And this was the time when I bought most of my Bitcoins in my crypto portfolio.
Ethereum versus Bitcoin
And then after December or now I’m recording this lecture in January 2021, Ethereum is actually much stronger than Bitcoin. It just rises much faster compared to Bitcoin.
Bitcoin is in kind of consolidation, it brought the $40,000, drop down to $30,000. And now it’s just in this range and everyone is looking for the break either upwards or downwards.
But at the same time, Ethereum did some great profits and huge gains. And I’m very happy having it in my portfolio.
To make it easy and to summarize, just open Crypto.com or any other crypto exchange. And go to the asset and compare Ethereum versus Bitcoin. And if you see the chart going up it means that Ethereum is stronger. At that moment it is better to invest in Ethereum. And if you see the chart going down, like what I see from September 2020 to December 2020, this means that Bitcoin is stronger than Ethereum. It would be better to invest in Bitcoin at that particular time.
Buy different crypto coins to diversify the risk
Now, at the moment I’m writing this lecture in January 2021, one more time, Ethereum versus Bitcoin goes aggressively up, which means that Ethereum gains much faster compared to Bitcoin. And that same technique you can use for any other cryptocurrency pair.
If you look at the Crypto.com platform, there are a lot of possibilities as trading assets.
There is the Litecoin versus the Bitcoin, EOS versus the Bitcoin, Link versus the Bitcoin, and so on. So at any moment, you can see which one performs better, which one gains more compared to Bitcoin.
I always suggest my students diversify the risk into different coins, not depending on one. The technique that I explained in this lecture will show you at any moment if it is better to buy Bitcoin or Ethereum, or any other crypto pair.
Thank you very much for reading the lecture. And don’t forget to leave a comment below if you still find it difficult to decide should you buy Bitcoin, or Ethereum, or any cryptocurrency instead of another. I’ll see you in the next lecture.