Bitcoin vs Ethereum: Understanding the Basics

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Posted 2025-01-22 11:00:36

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Purpose:

Bitcoin: Designed as a digital currency to store and transfer value. It's like digital gold.

Ethereum: Goes beyond currency, enabling smart contracts and decentralized applications (DApps).

Technology:

Bitcoin: Operates on its own blockchain, mainly used for transactions.

Ethereum: Built on a programmable blockchain, allowing developers to create applications.

Supply:

Bitcoin: Limited to 21 million coins, making it deflationary.

Ethereum: No fixed supply, but changes to reduce issuance have been implemented (e.g., Ethereum 2.0).

Consensus Mechanism:

Bitcoin: Uses Proof of Work (PoW), requiring high computational power.

Ethereum: Transitioned to Proof of Stake (PoS) with Ethereum 2.0, which is more energy-efficient.

What is Ethereum Blockchain?

The Ethereum blockchain is a decentralized platform that powers smart contracts—programs that run exactly as written without downtime, fraud, or interference. It uses Ether (ETH) as its native cryptocurrency for transactions and fueling operations.

Key Features:

Smart Contracts: Automate agreements without intermediaries.
DApps: Decentralized applications running on Ethereum’s network.
Security: Data is stored across thousands of nodes, making it tamper-proof.

Where Can I Buy Ethereum in India?

Top Crypto Exchanges in india is koinpark. Click here to know more about how to buy ethereum in India?

Steps to Buy Ethereum:

Create an account on a crypto exchange.

Complete KYC verification.

Add funds using UPI, bank transfer, or credit/debit cards.

Search for Ethereum (ETH) and place an order to buy.

Wallet: After purchase, transfer ETH to a secure crypto wallet for safekeeping.

Benefits of Trading Ethereum

High Liquidity: Ethereum is one of the most traded cryptocurrencies, ensuring quick buy/sell opportunities.
Diverse Use Cases: Beyond trading, you can stake ETH, use it in DeFi protocols, or participate in NFTs.
Growth Potential: With constant upgrades like Ethereum 2.0, it has a promising future in scalability and adoption.

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