Not 1,000, not even 5,000, but nearly 23,000 types of cryptocurrency exist. Yet, interestingly, only 8,000+ are active, used by over 300 million people worldwide. Of these functional digital currencies, Ethereum and Bitcoin are the most popular.

So if you're considering dabbling in crypto, it pays to know more about the Ethereum vs. Bitcoin debate. This way, you can determine which one you should buy and why.

Below, we've outlined what you need to know about these two cryptos, so read on.

Ethereum vs. Bitcoin: The Primary Differences

Contrary to popular belief, Ethereum isn't a cryptocurrency. Instead, it's a decentralized open-source blockchain network. However, it has a native crypto called Ether, or ETH.

Ethereum provides various services, including building decentralized applications. The platform's users then pay for these services using ETH.

On the other hand, Bitcoin (BTC), the parent of all cryptocurrencies, is more of a store of value. That's why more and more merchants and service providers now accept BTC as payments. You can even use crypto ATMs to buy and sell Bitcoin for cash, according to www.bytefederal.com.

Which Is a Better Buy, Then?

Before buying cryptocurrencies, don't forget they are all highly volatile. As a result, they're high-risk investments.

Therefore, you should never invest all your money in cryptocurrency alone. Instead, these digital currencies are best used as a portfolio diversification tactic.

That said, here's when to consider ETH over BTC or vice versa.

When to Go With ETH

If you plan to use Ethereum services or apps, you should go with Ether. This is because you can't use other digital assets as a mode of payment on the platform. Still, you can convert different types of crypto into ETH using a crypto broker or wallet.

Ether also trades for much less than Bitcoin. Currently, 1 ETH (US $1,885) equals 0.06554 BTC. (US $28,763). So with your fiat currency, you can buy more ETH.

When BTC May Be Better

Consider Bitcoin if you're investing in crypto for the first time. After all, BTC, being the first-ever cryptocurrency, is more established. That makes ETH a touch riskier.

Also, more merchants accept Bitcoin as a currency because of its long history. Indeed, estimates indicate that over 15,000 companies worldwide accept BTC. On the other hand, while ETH is also gaining traction, fewer establishments accept it as a mode of payment.

Another factor that could make BTC a better buy is its supply cap of 21 million coins. This means no more than 21 million BTCs will be in circulation anytime. This scarcity can make it more valuable and less subject to the effects of inflation over time.

By contrast, ETH has no hard cap. This can lead to a supply that exceeds demand. When that happens, its value can dip.

If You Can, Go With Both ETH and BTC

Now that you know more about the Ethereum vs. Bitcoin debate, you can decide which is best for you. But if you're still on the fence, why not consider investing in both? That way, you can further diversify your portfolio to balance your investments.

For more of the latest in cryptocurrencies and tech, check out our latest news and blog posts!