Bitcoin and Ethereum. What to invest in?

Although within the cryptocurrency market, there are several altcoins that could eventually surpass Bitcoin and Ethereum at times, these two are the cryptocurrencies with the highest value in the market. Its simple, their value depends among other things on their stability over time, this element makes them practically unattainable compared to other currencies that, although with potency, have enormous fluctuations that in short, make them less attractive and safe to invest.

The importance of Ethereum and Bitcoin is such that their high liquidity directly influences all kinds of assets. In 2021 alone, BCN and ETH have been the leading currencies in virtually every rally.

Being clear that both are cryptocurrencies with a high financial potential, it is important to dig a little deeper to know which of these Digital Tokens is better to invest in the short term.

So far in October 2021, Bitcoin has grown approximately 38%, compared to Ethereum , which this month was up 28.9% approx. The superiority at this moment is clear in favor of BCN; however, an analysis by TradingView, muestra que a pesar de su valor, durante este periodo  Bitcoin ha fluctuado a sus niveles más bajos del año, mientras ETH is more open to moving higher with agility.

For operators and investors, this scheme is represented in the concept “Implied Volatility”. When the IV falls to its annual minimum levels, it is predictable that a currency will show greater volatility in the future, this is the case of the volatility of Bitcoin during the last quarter.

For its part, in an analysis of the same period of time, Ethereum has shown a lower level of implied volatility. In this simple comparison, it is clear that ETH guarantees strong long-term performance and, despite approaching its high set in September 2021, BTC is approaching its “All Time High” this year.

Summarizing, clearly Bitcoin is the ideal Cryptocurrency to invest in the short term. But there is something important to consider regarding ETH:

Throughout 2012, Ethereum has outperformed Bitcoin every quarter. Much of this could be explained by the growth of the NFT market during this year, that is to say that while BTC shows solidity to invest in the short term, ETH is a long-running currency that is shaping up to historically guarantee a higher ROI. (Return of investment)