Crypto Basics

Ethereum vs Bitcoin: What's the Difference?

A factual comparison of Ethereum and Bitcoin: what each is built for, how they're secured, and why holding both can make more sense than picking one.

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Ethereum and Bitcoin aren’t competing for the same job. One is built to be simple, secure money. The other is a programmable platform that also happens to have its own asset. The real Ethereum vs Bitcoin question isn’t which one wins. It’s what each one is actually built to do, and why holding both can make more sense than picking a side.

What each one is built to do

Bitcoin set out to do one job well: move value from person to person without a bank in the middle, and hold that value securely over time. What Is Bitcoin and How It Works covers that in full. Ethereum took a different path. Alongside moving value, it runs smart contracts, so developers can build applications directly on the chain. What Is Ethereum? covers what it runs in more detail.

How each is secured

Bitcoin runs on proof of work: miners compete to solve a computational puzzle, and the winner adds the next block, spending real electricity and hardware to do it. Ethereum runs on proof of stake instead: validators lock up ETH as collateral rather than burning energy, and acting dishonestly costs them part of that stake. They’re different answers to the same problem of keeping a ledger honest without a central authority, and our proof of stake guide covers how Ethereum’s version works.

Supply and issuance

Bitcoin has a fixed, hard-coded cap: 21 million coins will ever exist, released on a schedule that halves roughly every four years. Ethereum works differently. There’s no fixed ceiling on ETH, but since the London upgrade, a portion of every transaction fee is burned rather than paid out, so net issuance rises and falls with how busy the network is rather than following a preset schedule. Bitcoin optimizes for predictable scarcity; Ethereum optimizes for an asset that pays for computation first.

What people actually use each for

Bitcoin is held and sent: a store of value and a way to move money across borders without a bank. Ethereum does that too, and it’s also the base layer for things built on top of it, DeFi apps, NFT marketplaces, and the wider EVM ecosystem of Layer 2 networks.

Not an either/or choice

Bitcoin and Ethereum solve different problems: one as a long-term store of value, the other as the ecosystem you need ETH to use. A wallet that handles both removes any need to pick a side.

Holding both in Zypto App

Zypto App supports 24,000+ assets across 20+ blockchains, BTC and ETH included, in one self-custodial wallet, so you’re not choosing between them. Hold both, send either one, swap between them, and spend through a crypto-loaded card, bills and top-ups. Your keys stay with you, so both your BTC and your ETH stay yours.

Free Your Money. With Zypto.

Download Zypto App

Prices, fees, features and availability mentioned in this article were correct at the time of publishing and may have changed since.

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ethereumbitcoincrypto basicsproof of stakeproof of workself custody
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