$ETH

Alert for Beginners: Not all crypto assets are the same – understand $ETH!

If you are starting in the world of cryptos, it is common to think that Ethereum ($ETH) and Bitcoin ($BTC) are similar. But beware: they have different purposes, structures, and risks.

Bitcoin (BTC) was created as a store of value and decentralized means of payment – a kind of “digital gold.”

On the other hand, Ethereum (ETH) is a platform focused on smart contracts and decentralized applications (dApps), being much more flexible, but also more complex and vulnerable to changes.

Why do their performances diverge in the medium and long term?

ETH has undergone profound changes, such as the transition to the Proof of Stake (PoS) model, which affected its supply and market dynamics.

Bitcoin is limited to 21 million units, which creates deflationary pressure. In contrast, ETH does not have a strict issuance limit, although burning mechanisms help control this.

The market sees BTC as a “safe haven” in crises, while ETH is still perceived as a more experimental asset.

Institutional adoption is greater in BTC, which also impacts capital flow.

Conclusion:

Do not invest in ETH just because it is cheaper than BTC. Study the project, understand the fundamentals and the risks. In crypto, the price is just part of the story.