Ethereum Vs Cardano
Ethereum vs Cardano, two similar cryptos with massive market shares. The two cryptocurrencies, whose developers were once partners, use similar technology and have almost identical goals. Ethereum and Cardano, both of which support smart contracts, are the second and fourth-ranked cryptos respectively by market cap. But which is best?
In this article, we will explore the pros and cons of Ethereum vs Cardano over several criteria, including energy consumption, fees, prices, security, supply and long-term future. By making a direct comparison between Ethereum and Cardano, we hope to shed some light on whether Ethereum vs Cardano is a better investment. We have also compiled a list of the top brokers supporting trading in both coins below.
Top Ethereum & Cardano Trading Brokers
#1 - Pepperstone
Why We Chose Pepperstone
Pepperstone continues to prove itself as one of the most trusted crypto brokers. Although its selection of digital tokens is average, you can trade popular cryptos like Bitcoin and altcoins like Ripple with up to 1:10 leverage, while its crypto indices provide a holistic view of the digital currency markets not found on most day trading platforms.
"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."
- DayTrading Review Team
- Coins: BCH, BTC, ETH, LTC, DASH, ADA, LINK, DOGE, EOS, DOT, XRP, XLM, XTZ, UNI, BNB
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: BTC 30, ETH 0
- Crypto Lending: No
- Crypto Staking: No
- Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
- Minimum Deposit: $0
- Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
About Pepperstone
Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.
Pros
- Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
- Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
- Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.
Cons
- Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
- Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.
- Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
#2 - IC Markets
Why We Chose IC Markets
IC Markets offers 20+ cryptocurrencies which are tradable via CFDs, including lesser-known tokens such as Avalanche, Kusama and Uniswap. Commission-free trading is available, and experienced crypto traders can access high leverage up to 1:200 in the MetaTrader platforms.
"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."
- DayTrading Review Team
- Coins: BTC, BCH, DOT, DSH, EMC, EOS, ETH, LNK, LTC, NMC, PPC, XLM, XRP, ADA, BNB, DOG, UNI, XTZ
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: BTC 42.036
- Crypto Lending: No
- Crypto Staking: No
- Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
- Minimum Deposit: $200
- Regulator: ASIC, CySEC, FSA
About IC Markets
IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.
Pros
- You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
- IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.
- IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.
Cons
- The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
- There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
- Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.
#3 - Eightcap
Why We Chose Eightcap
Eightcap’s crypto offering is best-in-class with 250+ crypto derivatives, surpassing that of almost every alternative. Testing also reveals Bitcoin spreads of 12 pips, coming in lower than most competitors, while it offers real-time trading ideas through the Crypto Crusher market scanner. Add in convenient deposits and withdrawals in digital currencies, and Eightcap offers the complete package for serious crypto traders.
"Eightcap delivers in every area for day traders with a growing selection of charting platforms and AI-powered tools. Now sporting 250+ crypto CFDs and the Crypto Crusher market scanner, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row."
- DayTrading Review Team
- Coins: BTC, ETH, LTC, BCH, XRP, XMR, DSH, EOS, XLM, ADA, TRX, DOGE, BNB, DOT, MATIC, VET, AXS, NEO, SOL, UNI, AAVE, KSM, THETA, CAKE, SUSHI, ATOM, XTZ, SNX, COMP, FLOW, EGLD, PUNDIX, RAY, ZIL, QTUM, BAND, OMG, FIDA, BADGER, NEAR and many more
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: $12 (BTC)
- Crypto Lending: No
- Crypto Staking: No
- Platforms: MT4, MT5, TradingView
- Minimum Deposit: $100
- Regulator: ASIC, FCA, xCySEC, SCB
Pros
- With tight spreads from 0 pips, low commission fees, and high leverage up to 1:500 for certain clients, Eightcap provides cost-effective and flexible trading conditions that can accommodate an array of strategies, including day trading and scalping.
- Having excelled across all key areas for day traders, Eightcap outperformed more than 490 competitors to win our 'Best Overall Broker' award for 2024, also securing our 'Best Crypto Broker' title.
- Eightcap stands out with a selection of powerful trading tools, including MT4 and MT5, the innovative algorithmic trading platform Capitalise.ai, and more recently the 50-million strong social trading network TradingView.
Cons
- The demo account expires after 30 days and can only be extended upon request - a notable inconvenience compared to the likes of XM with its unlimited demo mode.
- Eightcap needs to continue bolstering its suite of instruments to match category leaders like Blackbull Markets with its 26,000+ assets, featuring a particularly weak selection of commodities.
- In spite of an increasing variety of tools, Eightcap doesn't offer industry favorites like Autochartist or Trading Central, which offer cutting-edge charting analytics, live news, and market insights for short-term traders.
#4 - Exness
Why We Chose Exness
There is a small range of popular crypto tokens paired with fiat currencies available, with zero swap fees and no commissions in the Standard account. Trading is available via desktop or mobile apps, and deposits via crypto are also available in some countries.
"Exness remains an accessible broker for all experience levels, though experienced day traders will particularly appreciate the ultra-low commission rates, fast withdrawals and high-quality charting software."
- DayTrading Review Team
- Coins: BTC, LTC, ETH, XRP, BCH, SOL, SNX, UNI, BAT, DOT, XTZ, ADA, BNB, ENJ, FIL, DOGE, COMP, THETA, AAVE, LINK, IOST, CAKE, MATIC, HT, MANA, HBAR, INCH
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: Floating
- Crypto Lending: No
- Crypto Staking: No
- Platforms: Exness Trade App, MT4, MT5, TradingCentral
- Minimum Deposit: $10
- Regulator: FSA, CySEC, FCA, FSCA, FSC, CBCS
About Exness
Exness is a Cyprus-based forex and CFD brokerage established in 2008. With over 260,000 clients, several awards and reputable licensing, the broker has maintained its position as a highly respected global brand. Active day traders can access the popular MT4 and MT5 platforms, raw spreads and multiple account types.
Pros
- Exness is the first brokerage to pass the $1 trillion and $2 trillion marks in monthly trading volumes
- Local payments are available, plus deposits in BTC and USDT
- There's a strong range of account types for all experience levels and requirements, including Cent, Pro and Raw spread solutions
Cons
- There are no promotional deals or loyalty schemes for high-volume day traders
- Unlike most competitors, Exness doesn't provide its own education section
- There are several regional restrictions for retail traders including the USA, Europe and the UK
#5 - eToro
Why We Chose eToro
eToro leads the way in cryptocurrency trading, offering competitive spreads and a fixed 1% commission, plus their own wallet service. The broker offers a vast list of 95+ tokens which is continually being updated. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."
- DayTrading Review Team
- Coins: BTC, ETH, BCH, XRP, DASH, LTC, ETC, API3, CRO, SKL, IMX, ADA, MIOTA, XLM, EOS, NEO, TRX, ZEC, BNB, XTZ, DOT, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, FIL, ALGO, ATOM, MANA, APE, LRC, ENJ, BICO, BAT, BNT, OGN, MATIC and many more
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: BTC 1%
- Crypto Lending: No
- Crypto Staking: Yes
- Platforms: eToro Web, CopyTrader, TradingCentral
- Minimum Deposit: $50
- Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA
About eToro
eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.
Pros
- The web platform and mobile app perform better in user reviews and app rankings than top competitors, including AvaTrade
- eToro is a world-renowned brand with top-tier global regulation and a 25M+ user community
- There's a comprehensive online training academy with accessible resources, from bitesize articles to comprehensive courses
Cons
- The lack of additional charting platforms like MT4 will reduce the appeal for seasoned day traders accustomed to using third-party software
- Traders will face currency conversion fees for account denominations other than USD
- There are no guaranteed stop loss orders which would be a useful risk management feature for beginners
What Is Ethereum?
Ethereum has grown to become a major player in the cryptocurrency world, with a market cap second only to Bitcoin. However, unlike Bitcoin, Ethereum was created to facilitate a piece of transaction technology known as a ‘smart contract’, which Cardano has also begun to implement. Smart contracts allow users to transfer money to one another without the need for a third party (such as a bank or broker). Such transactions lower costs and increase security for the user. Famously, Ethereum also enables the storage and trade of non-fungible tokens (NFTs), pieces of unique digital property often linked to works of art and other high-profile items.
Both Ethereum vs Cardano use decentralised blockchain networks. In such a system, all Ethereum users participate as interacting nodes. Every transaction performed on the network is stored in blocks on the blockchain, which acts as a digital ledger of all previous interactions. To ensure that every node holds the same copy of the blockchain, ‘miners’ are used to verify transactions.
Miners are rewarded financially with the Ethereum native currency, Ether (ETH). To pay the miners, a charge called a gas fee is levied on each Ethereum transaction. This is known as a proof-of-work consensus method. Importantly, thanks to their decentralised blockchain networks, platforms like Ethereum and Cardano can support decentralised applications (DApps) like smart contracts. Proponents of currencies like Ethereum and Cardano claim that DApps will one day form the basis of the future global economy.
Recently, Ethereum has begun to move from a proof-of-work to a proof-of-stake blockchain, known as Ethereum 2.0. This update has been designed to improve scalability, transaction speed and energy consumption. For the sake of a fair Ethereum vs Cardano comparison, it is worth noting that Cardano was conceived specifically as a proof-of-stake blockchain platform.
What Is Cardano?
Ethereum vs Cardano share much of their cryptocurrency ‘DNA’. In fact, Cardano was founded in 2015 by one of the lead developers of Ethereum, who wanted to run the company as a for-profit entity. The native currency of the Cardano platform is ADA, named for the mathematician Ada Lovelace. Cardano’s blockchain network is currently being updated to support DApps, much like Ethereum’s. In September 2021, Cardano’s ‘Alonzo’ upgrade brought smart contracts to the network for the first time.
Considering the consensus models of Ethereum Vs Cardano, the latter was designed around the proof-of-stake system. Crypto networks that employ a proof-of-stake method have drawn considerable financial and academic interest largely because their energy consumption is much lower than blockchains that use a proof-of-work model, making the currency significantly more sustainable. Given the current demand for green technology, this could make proof-of-stake blockchains like Cardano (and eventually Ethereum 2.0) an attractive long-term investment. Cardano is currently the largest currency to use a proof-of-stake consensus model, by market cap.
In proof-of-stake blockchains, the role of the miners is replaced by ‘validators’, who, to be activated, put forward a certain amount of money (this is known as staking). Validators are then chosen at random to verify transactions, adding blocks to the blockchain. For performing this role, the validators are paid in the platform’s native currency (such as Cardano’s ADA), with the money for this again raised via gas-type fees.
This method has several advantages over proof-of-work blockchains. Firstly, the energy consumption is substantially reduced since the validators are selected randomly rather than competing with each other by solving energy-intensive equations. Additionally, the process of staking improves security by making attacks riskier for the perpetrators.
Proof-of-stake blockchains also have increased transaction speed and performance: it is estimated that Ethereum’s transition to Ethereum 2.0 will increase throughput from 15 to several thousand transactions per second. Finally, it is expected that proof-of-stake blockchains will have much better scaling ability, giving them enormous future potential.
Ethereum Vs Cardano Similarities
Decentralisation
Ethereum vs Cardano are both blockchains that can support decentralised applications (DApps). Cardano’s move to support DApps is currently ongoing, however, with smart contracts only arriving in a 2021 update. Supporters of decentralised finance (DeFi) argue that it may one day form the basis of the future world economy, eliminating the need for third-party transactions. DApps also make possible the creation and exchange of NFTs.
Recently, several high-value NFT sales have received significant media attention, raising the profile of Ethereum in particular. Both Ethereum vs Cardano have active NFT marketplaces. It must be said, however, that Cardano has notably fewer DApps on its network than Ethereum.
Trading Methods
Both Ethereum vs Cardano can be traded on several popular platforms, including eToro, Binance, Coinbase and Gemini. It is worth shopping around a few different brokers, taking into account their fees, margin rates and pairings. A flat fee rate is usually preferable to a percentage model. Many trading sites also offer joining bonuses to new traders.
As two of the largest cryptocurrencies by market cap, trading Ethereum vs Cardano is relatively secure compared to some of the smaller coins. However, given the uncertain future of the two currencies, placing a long-term bet on either coin comes with a degree of risk. In terms of price prediction, both coins are expected to perform well for the rest of 2021.
Security
Decentralisation makes both Ethereum vs Cardano less vulnerable to attack, provided 51% of the stake is held by honest participants. In theory, both networks could be targeted by a 51% attack like the one that affected Ethereum Classic in 2019. However, the financial resources needed to overcome both networks in this way would be enormous – in the order of tens of billions of USD.
Ethereum Vs Cardano Differences
Market Cap & Price
As it stands, Ethereum vs Cardano have markedly different market capitalisations: Ethereum is the world’s second-largest cryptocurrency with a market cap of over USD 350 billion, whereas Cardano occupies the number 4 spot with a market cap of around USD3 billion.
ETH’s price is also generally much larger than ADA’s (~3,000 USD to ~2 USD). Ethereum benefits from being the largest smart contract network in existence and is also home to the most NFTs and tokens. Ethereum’s price skyrocketed in the cryptocurrency boom of recent years. However, some argue that its enormous market valuations have become difficult to justify.
Ethereum’s high gas fees and scalability problems have also dented its reputation and its current energy consumption figures are unsustainable. However, the move to Ethereum 2.0 should make Ethereum an exciting investment once again.
Validation Model, Speed & Energy Consumption
Currently, the validation system of Cardano’s ecosystem vs Ethereum’s is completely different. Ethereum follows a proof-of-work system, while Cardano holds the advantage, running a proof-of-stake model that makes it faster and more efficient. Cardano’s transaction speed sits comfortably at 257 transactions per second (TPS), far higher than Ethereum’s average of around 15 TPS. Cardano also uses just 6 GWh of energy annually, while Ethereum miners consume a whopping 44.5 TWh.
Ethereum’s proof-of-work model has also cursed it with considerable scaling problems: the network often becomes congested due to its growing popularity. This leads to higher fees and slower transaction speeds, with the Ethereum network even shutting down at one point in 2021. Comparing Ethereum vs Cardano, that latter has experienced no such problems with its performance. Hopefully, Ethereum’s transition to Ethereum 2.0 will improve matters in this regard.
Fees
Gas fees, which are charged on every Ethereum transaction, can be particularly volatile and have increased steadily over recent years. This increase has been largely caused by growing congestion and performance issues on the Ethereum network. Cardano’s fees, however, are generally much more affordable.
Supply
The total supply of ADA Cardano is fixed at 45 billion tokens. In contrast, Ethereum has a limitless supply that increases by 4.5% each year. Investors looking to buy Ethereum vs Cardano should take into account the supply of both coins, which will affect future prices. It is worth noting that Cardano is built with a declining stake reward, which prevents inflation and increases scarcity.
Pros Of Ethereum For Traders
In the Ethereum vs Cardano debate, the main advantage of the former is its size, being a larger, more high-profile cryptocurrency. As the leading decentralised smart contract network, Ethereum supports a greater number of DApps and NFTs, which are only beginning to be supported on the Cardano platform. Consequently, Ethereum has been more widely adopted than Cardano. However, Ethereum’s popularity has led to some problems with network congestion, with adverse knock-on effects on speed and fees. Ethereum’s sheer size and importance almost certainly make it a safer long-term investment than Cardano.
Ethereum is also expected to move to a proof-of-stake verification model in 2022. This will address many of the current scaling problems the network is experiencing and should boost Ethereum’s value, as well as making it more eco-friendly.
Pros Of Cardano For Traders
For Ethereum vs Cardano, the latter already uses the proof-of-stake system for its blockchain, offering several advantages over the current version of Ethereum. Its lower energy consumption, in particular, has meant that Cardano has attracted serious attention from investors. Proof-of-stake makes Cardano significantly faster than Ethereum, which means it can avoid congestion problems and keep transaction fees low. Cardano has also recently implemented smart contracts onto its network, making it a direct competitor of Ethereum for the first time.
Final Word On Ethereum Vs Cardano
When comparing Ethereum vs Cardano, the most significant differences lie in the validation models used. Ethereum’s archaic proof-of-work system may be about to be updated to proof-of-stake, but Cardano was designed specifically around this. This means that it has, throughout its time, been much more eco-friendly, as well as boasting faster transaction times, limited congestion and energy-efficient NFT marketplaces. However, Ethereum is a significantly larger cryptocurrency with a much greater public profile, also being the frontrunner in smart contracts, DApps and NFTs.
FAQs
Is Cardano Better Than Ethereum?
The Cardano network possesses a fully functioning proof-of-stake blockchain and recently introduced smart contracts. However, Ethereum is yet to upgrade to Ethereum 2.0, which will utilise the proof-of-stake validation method. This gives Cardano advantages in terms of speed, scalability and security. Ethereum, on the other hand, is the larger and more established platform, supports a greater number of DApps and has been more widely adopted than Cardano.
Can Ethereum And Cardano Coexist?
Although Ethereum vs Cardano have both been designed to perform very similar roles, there doesn’t seem to be any reason why the two currencies could not survive simultaneously into the future, with each coin carving out an individual niche. Moving to a proof-of-stake model will also mean that both currencies can exist together sustainably.
Is Ethereum Vs Cardano’s Energy Consumption Best?
Cardano is currently more energy-efficient than Ethereum, by a significant margin. It is expected that it will still outperform Ethereum 2.0 in this regard, making it the greener of the two cryptos.
Do Ethereum Vs Cardano Support Smart Contracts?
Both platforms have implemented smart contract technology as one of their major goals. Ethereum has supported smart contracts for a while, which allow users to send money to each other without a third party. On the other hand, Cardano recently introduced smart contracts in its 2021 Alonzo update.
Do Ethereum Or Cardano Have NFTs?
Both Ethereum vs Cardano platforms allow the creation and exchange of NFTs. However, Ethereum has the leading NFT collection of any crypto, with Cardano lagging.