Ever since the SEC started an all-out war with Binance and Coinbase, the crypto market has experienced extreme uncertainty. Investors are fearful to invest in high-risk assets such as altcoins, due to the high downside probability.
That being said, one asset remains mainly unphased by these market actions. Bitcoin is showing incredible strength despite the bad news that has been flooding in the past few months.
In this environment, many are looking to convert ETH to BTC or and limit their risks. Moreover, with the upcoming bitcoin halving, we can expect the #1 crypto to regain some growth potential. In this article, we compare ETH and BTC and provide you with the best ways to exchange between these two blue-chip assets.
What Is ETH?
Ethereum pioneered the smart contract concept in 2015 and opened up the blockchain industry to an exponential number of new use cases. Thanks to its programmable environment, the Ethereum network allows developers to deploy dApps and tokens. In turn, these allow the adoption of decentralized finance, which includes DEXes, lending platforms, yield farming, and much more.
Additionally, these smart contracts are essential to the creation of NFTs. These non-fungible tokens allow the advancement of the GameFi industry, where users can play blockchain-based games to earn revenue.
In this environment, the ETH coin is essential to the network, as it serves as gas for paying transactions. Over the years, Ethereum has seen many competitors trying to dethrone him. However, the ADA vs ETH or battle seems to have been hands-down won by the Ethereum network.
What Is BTC?
Bitcoin is the original crypto that implemented the idea of a peer-to-peer currency that runs on an entirely decentralized network. Satoshi Nakamoto released the Bitcoin code with the hope of providing humanity with a new form of money, devoid of intermediaries like banks or governments.
Moreover, he created BTC with a limited supply of 21 million and under a controlled supply schedule. Miners create new Bitcoin by solving mathematical puzzles in a proof-of-work environment. Solving these puzzles rewards them with transaction fees and new bitcoin.
However, every four years, these rewards are halved, which we refer to as the “Bitcoin halving.” Many consider this major recurring event as a catalyst for a new bullish cycle.
Main Steps of Swapping ETH for BTC
Although Ethereum is a strong, viable crypto, it remains riskier than Bitcoin in times of high volatility. As such, it can be wise to convert ETH to BTC, securely and if possible, anonymously.
Find a Platform
The first step in exchanging ETH for BTC is to find a trusted platform that allows you to swap between these two assets. For example:
- Godex is a privacy-focused exchange that doesn’t require any registration or verification.
- Binance is the largest crypto exchange in the world that offers many features like futures trading and different order types.
- SimpleSwap focuses on simplicity and provides hundreds of cross-chain token swaps.
All in all, different types of exchanges will provide you with different benefits.
Create and Set Up Your Account
The next step will be creating your account. Exchanges like Binance will require a lot of personal information and documents to comply with the AML regulations.
Godex, on the other hand, will not require any registration, and you will be able to transact with just your Ethereum and Bitcoin addresses securely.
Make an ETH Deposit
The third step in your swap will be to deposit the ETH you wish to exchange for BTC. Centralized exchanges like Binance will provide you with a hot wallet address. Once deposited, you will be able to place an order for ETH/BTC.
On Godex, there’s no need to deposit ETH, as the process is a simple ETH to BTC swap. You send the ETH to an address provided by the exchange, and you receive BTC in your personal wallet.
Place an Order
Finally, you will need to place an order on the exchange. There are different types of orders you can use such as:
- Market – which will use the current market price
- Limit – where you set a limit price where you want to sell ETH for BTC.
Once the order has been completed, you will be able to access your BTC in your wallet.
ETH to BTC: Exchanging Risks
Exchanging ETH for BTC or ETH to CAD is fairly streamlined today. You have a wide range of choices on the exchange types and almost anyone in the world will be able to do this in a few minutes. Anonymous exchanges provide higher security as you don’t connect your personal data with your crypto holdings. This can add another layer of security to your self-custodianship.