For some time, cryptocurrency has been popular. However, there is a reason that there are thousands upon thousands of cryptocurrencies in circulation.
It can be hard to pick which cryptocurrency to buy with so many choices and analyzing which cryptocurrency is a good choice is very different from analyzing which stock is a good choice.
One may not be able to fundamentally look at cryptocurrencies, but one can look at the technology behind the cryptocurrencies and analyze the real-world utilities.
But, a case can be made for Ethereum and Terra. And, if you can only buy one, which one should you buy?
In 2013, Vitalik Buterin came up with the idea of Ethereum by describing it in a white paper, but there are several other founders as well. It was not until 2014 that work on it started as well as being crowdfunded.
The network went live in mid-2015. Then, its maximum was almost $4,800 and now sits at about $3,000.
Ethereum is the second-largest cryptocurrency, and it was one of the first to support smart contracts.
They have a proof-of-work mechanism that lets people mine the next block of the blockchain. The good part is that it is very secure, but the bad part is that the process is slow and expensive. On top of that, gas fees are much higher.
With that being said, Ethereum wants to transfer to a proof-of-stake network which will help with cost and scalability issues.
Also, many of the top cryptocurrencies are built on the Ethereum network, and not to mention, it is also the largest host for NFT marketplaces.
The History of Terra
In early 2018, Daniel Shin and Do Kwon co-founded Terra. It is a payment system backed by Terra Alliance, a group of fifteen large e-commerce companies in Asia.
They hoped it could bring blockchain payment networks to the scale it deserves. That being price-stable digital assets that could compete against many of the world’s major fiat currencies.
Terra tries to accomplish that goal by having a seigniorage-style stablecoin platform that is algorithmically governed to expand and contract the supply.
There is luna, a stabilizing crypto asset, and other fiat-pegged tokens within Terra. Using a range of stablecoins means less volatility.
According to the market cap, the coin is the seventh-highest cryptocurrency, and its highest maximum has been over $100 per token.
Even though Terra is smaller than Ethereum, that may only just mean more growth for the future.
Which Cryptocurrency is Better
The pros and cons of each cryptocurrency were laid out, and it is ultimately up to you which cryptocurrency you are willing to put your money in.
But, Ethereum being the second-largest cryptocurrency by market cap, many would argue that most should keep some ETH tokens. And Terra’s luna token seems very promising.
As with any investment, cryptocurrency is a risk, so you should have full understanding of what you are investing in and be comfortable with the amount of risk you take.