Bitcoin vs Ethereum: What Should Australians Hold in 2025?
This article is for informational purposes only and does not constitute financial advice. Please consult with a licensed financial advisor before making any investment decisions.
If you're living in Australia and looking to invest in crypto, two names dominate every conversation: Bitcoin (BTC) and Ethereum (ETH).
But which is the smarter choice to hold in 2025? Should you go all-in on Bitcoin, diversify with Ethereum, or split your portfolio?
This guide breaks down everything Australians need to know — from market performance to local use cases, fees, risks, and more.
🧠 Quick Overview: BTC vs ETH
| Feature | Bitcoin (BTC) | Ethereum (ETH) |
|---|---|---|
| Purpose | Digital gold, store of value | Decentralised app platform |
| First launched | 2009 | 2015 |
| Max supply | 21 million (fixed) | Unlimited (but controlled issuance) |
| Energy model | Proof-of-Work → now Proof-of-Stake | Now fully Proof-of-Stake (Ethereum 2.0) |
| Key Australian usage | Holding, investing, trading | NFTs, DeFi, Web3, investing |
🟡 1. Which Is More Popular in Australia?
According to Australian exchange data from CoinSpot and Swyftx:
- Bitcoin remains the #1 purchased crypto
- But Ethereum is the most commonly used for NFTs, staking, and Web3 tools
💡 Beginners typically start with BTC
While tech-savvy users and creators often prefer ETH
🟡 2. What’s Better for Long-Term Investment?
✅ Bitcoin Pros:
- Scarce digital asset with strong global demand
- Seen as a “store of value” — like digital gold
- Institutional interest (e.g., ETFs in the U.S.)
✅ Ethereum Pros:
- Powering the smart contract economy (NFTs, DeFi, DAOs)
- Earning potential via staking
- More developer activity than any other blockchain
🧠 In Australia, ETH offers more utility, but BTC offers more simplicity and brand trust.
🟡 3. Volatility & Risk (2025 Outlook)
| Factor | Bitcoin | Ethereum |
|---|---|---|
| Volatility | High | Even higher |
| Institutional adoption | Higher | Medium |
| Regulatory exposure AU | Low (well-understood asset) | Moderate (due to DeFi/NFTs) |
| Risk of tech changes | Low (stable protocol) | Medium (smart contract risk) |
⚠️ ETH’s versatility comes with added technical and security risks — especially in DeFi.
🟡 4. Fees & Accessibility in Australia
- Bitcoin: Lower on-chain transaction complexity
- Ethereum: Higher gas fees, especially during NFT or DeFi activity
However, both are widely accessible via:
- ✅ CoinSpot
- ✅ Swyftx
- ✅ Binance Australia
- ✅ Trust Wallet / MetaMask
Tip: Many Australians use BTC for holding, and ETH for utility + staking.
🟡 5. Which Performs Better? (Price History Snapshot)
| Year | BTC ROI (Annual) | ETH ROI (Annual) |
|---|---|---|
| 2020 | +305% | +475% |
| 2021 | +59% | +399% |
| 2022 | -64% | -67% |
| 2023 | +91% | +91% |
| 2024 | +114% | +53% |
Past performance doesn’t guarantee future returns — but ETH has historically outpaced BTC in bull markets, while BTC tends to fall less hard in crashes.
What happens in 2025? This remains to be seen.
🟡 6. Tax Implications for Australians
In Australia, the ATO treats both Bitcoin and Ethereum as CGT (Capital Gains Tax) assets.
- Buying either is not taxable
- Selling, swapping, or gifting = CGT event
- Staking ETH = possible income tax
📚 Related: NFT & Crypto Tax in Australia: What You Need to Know (2025)
❗ Ethereum’s staking and smart contract usage introduce more tax complexity.
🟡 Final Verdict: BTC or ETH for Aussies?
| Use Case | Better Option |
|---|---|
| Long-term passive holding | ✅ Bitcoin |
| Earning/staking/development | ✅ Ethereum |
| Simplicity + brand trust | ✅ Bitcoin |
| Innovation + growth potential | ✅ Ethereum |
| First crypto investment | ✅ Bitcoin (typically) |
| NFT/Web3 interaction | ✅ Ethereum |
Best choice for Australians in 2025?
💡 Hold both. Many Aussie investors diversify your percentages across. An example is someone may hold 70% BTC and 30% ETH.
!!! This article is for informational purposes only and does not constitute financial advice. Please consult with a licensed financial advisor before making any investment decisions. !!!
🧠 FAQs: BTC vs ETH for Australians
Q: Is Ethereum riskier than Bitcoin?
A: Slightly, due to smart contracts, staking, and platform complexity.
Q: Do I need both BTC and ETH in my portfolio?
A: Not required, but many Aussies hold both for balance: BTC for store of value, ETH for growth and utility.
Q: Can I buy BTC and ETH with AUD?
A: Yes — via CoinSpot, Swyftx, Binance AU, and other exchanges.
Q: Do I pay tax on both?
A: Yes. Both are CGT assets under ATO rules.
