How to Decide Whether to Invest in Ethereum or Chainlink

Source: elevenews.com

News about bitcoin is everywhere ad because of its popularity, other cryptocurrencies have also gained a lot. Bitcoin and Ethereum are the top cryptocurrencies that are getting investments. However, because of the huge popularity of Bitcoin, it has become quite expensive. Therefore, those who have already bought the coins are at a benefit.

But if now you want to earn huge profits through bitcoin, buying them is not the right thing. Because they are already at their highest point. The chance of them going down is more than a sudden increase. Despite being at such a point, Bitcoin has paved the way for other cryptocurrencies.

That is why people are moving towards other crypto coins. So what comes after Bitcoin? Ethereum, with Ether as its coin name. Other than this there are also plenty of cryptocurrencies available in the market like Chainlink. You can get information about chain link rate, it is trading and related news and other information about Chainlink at this website.

But the thing is not every currency is as profitable as the top ones.

Ethereum and how it is different from others

Source: thehindubusinessline.com

Although bitcoin is quite popular around the globe but Ethereum is not behind. The main reason for the huge popularity of Ethereum is not just it is being a crypt but it is more than that. Bitcoin was and is more like a digital currency. You can use it just like real-world cash.

However, Ethereum goes beyond this. It is a complete operating system with an open-source. Yes, you can use it like any other currency of the world but you can also use it for small contracts and Apps. Furthermore, it also enables decentralized finance.

Because of its inherently decentralized system, its controlling factors are also more in number. To put it simply, there are specific entities that control different cryptocurrencies. However, this is not the case with Ethereum. It has multiple entities therefore, the risk of sudden increase or decrease in price is not there. So if you are planning to make an investment in Ether, you will have a safe game.

Relationship between Chainlink and Ethereum

The relationship between Ether and Chainlink coins is quite deep. Chainlink is built on Ethereum and it uses its blockchain to carry out its operations. So we can say that Chainlink is actually dependent on Ether.

So that means Ether is better? Well, actually it also needs Chainlink because it cannot use the data of real-world on its blockchain. Thus, it causes several limitations to the currency and isolates it. Here comes Chainlink to its rescue. It acts as a bridge to connect data of the real world to Ether. Thus, it becomes suitable for businesses that are not in the crypto space.

Though both currencies favor each other in performance, they are different and similar at the same time. Both of them give space to each other for expansion.

Difference between the two

Source: currency.com

Ethereum is a blockchain platform and it also allows developers to create applications. On the other hand, Chainlink is an oracle network (decentralized).

When talking about the market capital of both currencies, Ethereum has an upper hand, as it is 32 times bigger than Chainlink. Thus, the ROI of investment is favorable for Chainlink.

Despite that, the risk factor is low with Ether and therefore, if you are planning to make an investment, Ether is a better choice for you. There are a lot of differences between the two in terms of their pros and cons and their features too.

Market capitalization

The biggest difference between both currencies is their market capitalization. You can get the market capitalization of any currency by multiplying the price of the coins by the number of coins circulating in the market. Thus, they tell you the actual market value of a certain currency. This difference between Ether and Chainlink is quite huge. Despite all the dependency upon each other, Ether is still 32 times bigger.

Which one is better for investment then?

Source: unsplash.com

Of course, this question will arise at this point. You are learning about the currencies to make a profit. The higher the profit rate, the more you will be interested in that currency.

After the complete analysis, if I have to choose one that will be Ether. The biggest reason behind this is the risk factor. Because of multiple entities controlling the currency, it has a low-risk factor. You won’t see a sudden price drop or increase as to what happens with other cryptocurrencies.

The Crypto market is still volatile. Therefore, you can expect sudden changes and suffer from huge loss too. Bitcoin experienced a spike in its value when Tesla accepted it. A single tweet from Elon Musk rose Bitcoin to a huge value.

However, Ethereum is steady in its performance. Therefore, despite the volatile market, you won’t suffer from huge losses.

Broad exposure

In addition to this, Ether will also offer broad exposure. The value and market capital of Ether is determined by the use of its blockchain. The more applications developers build, the higher the use will be. Thus, the value will increase eventually.

Furthermore, when the use of applications (build on Ethereum) increases, it further increases its value. So if the application becomes popular, Ether also gains value and you get profit.

Therefore, if you are investing in Ether, you are actually investing in everything that is built on it. This is not the case with many other cryptocurrencies.

What about Chainlink then?

Source: gettotext.com

Chainlink is of course not flop. It is still better than many other currencies out there. Its adoption rate is also 10 times more than its competitors. So if you also want to invest in the Oracle network, Chainlink is the best choice for you. Because observing its performance, it is surely going to be better than its market competitors.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

  +  28  =  33