When people think of cryptocurrency, two names always come up: Bitcoin (BTC) and Ethereum (ETH). While they are both digital currencies, they were built for very different purposes. If you are a beginner, understanding this difference is the first step to smart investing.
The Core Difference
Bitcoin was created as “digital gold”—a store of value and a medium of exchange. Ethereum, on the other hand, is like a “global computer.” It allows developers to build applications (dApps) on top of its blockchain.
Quick Comparison Table
| Feature | Bitcoin (BTC) | Ethereum (ETH) |
| Primary Purpose | Store of Value & Currency | Smart Contracts & dApps |
| Transaction Speed | Slower (approx. 10 mins) | Faster (seconds to minutes) |
| Supply Limit | Capped at 21 Million | No hard cap (Inflationary/Deflationary) |
| Founder | Satoshi Nakamoto | Vitalik Buterin |
Key Takeaway: If you want stability and long-term holding, Bitcoin is often preferred. If you believe in the future of decentralized apps and tech, Ethereum is the key player.
Conclusion
Both cryptocurrencies have massive potential. Most diversified portfolios hold a mix of both to balance safety with technological growth.