The year that went by saw major investments in the crypto industry. Investors across the globe grew. The total market capitalization of cryptocurrency has now reached $2 trillion. Since 2009, Bitcoin continues to rule the market. But in the past five years, we have seen other cryptocurrencies enter the market. Players have provided their investors with large increases and profits to their investment.
There is an increasing acceptance of cryptocurrency across the globe. Other than individual investors, there are also investments by institutional agencies. Companies including e-commerce sites, automobile, healthcare, and insurance industries that accept digital payments. Deloitte recently announced its partnership with Avalanche in developing blockchain-based technology for fundraising. In addition to this, we have seen Microsoft and JP Morgan Chase coming in support of crypto payments. Microsoft crypto payments for their Xbox. Coming to the automobile industry, we have seen Tesla announcing support to both Bitcoin and Dogecoin. Dogecoin can now be used to buy official merchandise of Tesla. Earlier, Tesla accepted Bitcoin for their cars. you can use https://bitcoin-code.live/ to know more on investment.
With the widespread acceptance, let us now understand whether Ethereum or Cardano will provide you with better benefits.
Ethereum has taken a significant position next to Bitcoin. Blockchain deployed in Ethereum supports the development of decentralized applications and smart contracts. Decentralized finance models, non-fungible tokens allow users to undertake transactions in a secured platform. These smart contracts are executed without the intervention of any third party.
Another attractive factor of the Ethereum platform is its decentralized application support. This means Ethereum utilizes blockchain and allows users to create apps on their own. All applications developed under this platform needs an Ethereum payment model. The success of these apps in turn provides indirect benefits to Ethereum.
Cons of Ethereum
A negative factor pointed out by most investors is the proof of work. Ethereum is built on PoW. The mining process is incredibly intensive and consumes a lot of energy. The current mining protocol requires users to deploy highly powerful computers. This powerful tool is required to solve the mathematical puzzle. This in turn works as verification for every crypto transaction. With every completed transaction the puzzles get tougher. In the long run, this will become even more energy-consuming.
The good news here is that Ethereum is coming up with new proof-of-stake technology. With this protocol in place, it will become easier to solve puzzles and verify transactions. In simple terms, data mining becomes simple. With this new protocol in place, users will have to put their earnings at stake. Once the transaction verification is completed, earnings along with rewards are added to a crypto investor.
If you are a crypto investor, you might have noticed the similarities between both the tokens. Cardano was developed by a cofounder of Ethereum.
Cardano took its lead position in the market with its proof-of-stake technology. Cardano has leverage here as compared to Ethereum. However, an important point here is that Cardano is a new player in the crypto market. This crypto has survived market pressure and performed fairly well in the market as well. Over the past few years, the total number of investors on Cardano has increased. This increase has also helped an increase in Cardano’s total market capitalization.
Which coin will give you better profits?
Both Ethereum and Cardano carry their own risk. Cardano is recommended if you have a high-risk appetite. This is because Cardano is new, and has not seen market fluctuation like Ethereum. As compared to Ethereum, the alternate crypto – Cardano is bound to give you better profits. You need to hold on to this investment for a longer period until the coin price grows.
Where to buy Ethereum and Cardano?
Both these cryptos are now available globally. Considering the growing popularity these coins are now available on all popular exchanges. One can decide their investment plans in any of these coins by buying them from a trusted exchange.
With the growing popularity of both these coins, we need to wait and watch how these coins will perform. But considering technological advances and ease in mining Cardano is the best bet. Ensure that you follow market conditions before making any investment decisions.