#BTCvsETH Trade

Bitcoin vs. Ethereum: What’s the Difference?

By Nathan Reiff Updated June 28, 2025

Reviewed by Somer Anderson

Fact checked by Michael Rosenston

Part of the Series

Bitcoin Price Guide

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Bitcoin vs. Ethereum: An Overview

Ether and bitcoin are similar in many ways: each is a digital currency traded via online exchanges and stored in various types of cryptocurrency wallets. There are many significant differences, however.

Bitcoin is designed to provide an alternative to physical or fiat currency. Ethereum is intended for complex smart contracts and decentralized applications which are believed to be part of the emerging and theoretical infrastructure of the future of the internet known as Web3.

Key Takeaways

Bitcoin signaled the emergence of a radically new form of digital money that operates outside the control of any government or corporation.

People began to realize that one of the underlying innovations behind Bitcoin—the blockchain—could be used for other purposes.

Ethereum uses blockchain technology to maintain a decentralized payment network and seeks to become the foundation for Web 3, the infrastructure being built to decentralize the internet.