Source: shutterstock.com/BT Side

Theres no denying it. Bitcoin (BTC-USD) is the ultimate blue-chip cryptocurrency. Its like gold but if thats true, then Ethereum (ETH-USD)is like silver. Thats a huge compliment to Ethereum, and if youre seeking huge crypto-market gains this year, your best bet is ETH stock.

Now, you might be thinking that Ethereum plays second fiddle to the much more popular Bitcoin. Its just a runner-up in terms of market capitalization, so why should anyone take Ethereum seriously?

Yet, just remember that smaller assets can make bigger moves. When you consider how useful Ethereum is, especially when compared to Bitcoin, youll surely reconsider your cryptocurrency-investment strategy.

Crypto traders really should think about the analogy between Ethereum and Bitcoin. Theyre like silver and gold, as gold is more popular but silver has more uses (for solar panels, electric vehicle batteries, etc.).

Similarly, Ethereum has use cases that Bitcoin just doesnt have, or at least not to the same extent. Blockchain developers are acutely aware of this.

When developers/coders are looking to create smart contracts, decentralized finance protocols, non-fungible tokens or a platform for blockchain-based gaming, theyll probably build these things on the Ethereum blockchain.

Thus, in-the-know blockchain participants appreciate Ethereums utility even if many retail investors dont. Ethereum is indispensable in the current blockchain ecosystem, much like silver is essential in the 2020s.

As youre probably aware, the Securities and Exchange Commissionapproved11 spotBitcoinexchange-traded funds earlier this year. This event precipitated a huge rally in Bitcoin, and ETF stock followed Bitcoin higher.

Dont think of Ethereum as just a tag-along, though. Just like silver tends to magnify the price moves of gold, Ethereum is lower-priced and consequently can move faster than Bitcoin does.

Besides, Bitcoin already had its watershed moment in 2024. Ethereum should be next in line, as the SEC hasnt yet approved a spot Ethereum ETF. Its probably just a matter of time before this happens, though its difficult to predict the timing.

BlackRock (NYSE:BLK), Grayscale and other firms have already submitted applications to the SEC for spot Ethereum ETFs. Granted, the SEC is dragging its feet in deciding on these Ethereum ETFs.

But then, the SEC also took its sweet time when deciding on the currently approved spot Bitcoin ETFs. Besides, its certainly not unusual for the gears of government to turn slowly. So, just be patient.

If Ethereum is basically silver to Bitcoins gold, then expect ETH stock to make a magnified move in the coming months. Instead of trying to time your entry perfectly, just HODL: Hold On for Dear Life with a position in Ethereum.

This doesnt mean you cant also own Bitcoin. Just keep an open mind, as Ethereums utility makes it just as important as Bitcoin in the cryptocurrency ecosystem. Hence, for best results in 2024, feel free to add some Ethereum to your crypto portfolio.

On the date of publication, David Moadeldid not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

David Moadel has provided compelling content and crossed the occasional line on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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Ethereum: The Silver Bullet That Could Outshine Bitcoin in 2024 - InvestorPlace