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It can not be denied. Bitcoin (BTC USD) is the ultimate “blue chip” cryptocurrency. It’s like gold – but if that’s true, then ether (ETH-USD) is like silver. This is a huge compliment for Ethereum, and if you are looking to make big gains in the crypto market this year, ETH stock is your best bet.
Now you might be thinking that Ethereum plays second fiddle to the much more popular Bitcoin. It is only in second place in terms of market capitalization. So why should anyone take Ethereum seriously?
However, remember that smaller assets can make bigger moves. Considering how useful Ethereum is, especially compared to Bitcoin, will certainly make you rethink your cryptocurrency investment strategy.
Ethereum is the “silver bullet” for crypto investors
Crypto traders should really think about the analogy between Ethereum and Bitcoin. They are like silver and gold in that gold is more popular, but silver has more uses (for solar panels, electric vehicle batteries, etc.).
Likewise, there are use cases with Ethereum that simply don’t exist with Bitcoin, or at least not to the same extent. Blockchain developers are very aware of this.
If developers/programmers want to create smart contracts, decentralized finance protocols, non-fungible tokens, or a platform for blockchain-based gaming, they will likely build these things on the Ethereum blockchain.
Therefore, knowledgeable blockchain participants appreciate the utility of Ethereum, even if many retail investors do not. Ethereum is essential in the current blockchain ecosystem, much like silver is essential in the 2020s.
Ethereum has not yet seen its turning point
As you probably know, the Securities and Exchange Commission approved 11 Bitcoin exchange-traded funds earlier this year. This event sparked a huge rally in Bitcoin, and the ETF stock followed Bitcoin’s rise.
However, don’t think of Ethereum as just a supplement. Just as silver tends to amplify gold’s price movements, Ethereum is cheaper and can therefore move faster than Bitcoin.
Furthermore, Bitcoin already had its turning point in 2024. Ethereum should be next in line as the SEC has not yet approved a spot ETF for Ethereum. It’s probably only a matter of time before this happens, although it’s difficult to predict when.
BlackRock (NYSE:BLACK), Grayscale and other companies have already done it Applications submitted to the SEC for spot Ethereum ETFs. Granted, the SEC is dragging his feet when deciding on these Ethereum ETFs.
But the SEC also took its time when deciding on the currently approved spot Bitcoin ETFs. Plus, it’s certainly not unusual for the wheels of government to turn slowly. So just be patient.
Don’t ask “When.” HODL ETH shares only.
If Ethereum is essentially silver compared to Bitcoin, then expect ETH stock to see a larger increase in the coming months. Instead of trying to time your entry perfectly, just try HODL: Hold On for Dear Life with a position in Ethereum.
That doesn’t mean you can’t own Bitcoin too. Just keep an open mind because Ethereum’s utility makes it just as important as Bitcoin in the cryptocurrency ecosystem. Therefore, to get the best results in 2024, feel free to add some Ethereum to your crypto portfolio.
At the time of publication: David Moadel did not have, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.