Where should you invest? Stock or Cryptocurrency? Read to Know
What is the better investment: Stocks Vs Cryptocurrency?
This common question is a subject of debate among investors. When it comes to choosing between the two investors still find themselves stuck in a perplexing situation. In this article, we endeavor to help you understand both market conditions. Whether you should add Stocks to your portfolio or cryptocurrency- what is right for you? Let us find out.
Why Cryptocurrencies are preferred over regular stocks?
The central attraction of cryptocurrency is its market volatility. With few downsides, it promises you incredible returns. Within a matter of minutes, it can increase your investment by manifolds. Moreover, when supported by market analysis and trends, the probability of your success is higher. Investors can even achieve double and triple returns on their investments, something which traditional stocks cannot offer you. Even if you have good hands at stocks, you can earn a 5-15% return on your investments. While investing in cryptocurrency can provide you approximately 100% return. So in terms of ROI, cryptocurrency investment is unarguably unrivaled.
Understanding trends in the greater stock market is difficult
Understanding trends in the traditional stock market is quite simple, while the same is not the case when you move to the greater stock market. Analyzing, recognizing, predicting, and capitalizing on stock market trends is difficult. It is because the stock market is ruled by external and unpredictable elements. In contrast, fluctuations in crypto prices follow an interrelated pattern. This makes it easier for investors to predict market movement. Moreover, a crypto trading strategy like HODL-ing proves to be profitable for positive market trends.
Stock vs. Cryptocurrency Risk
All types of investments carry an inherent risk. There could be several possible reasons for a market crash. Companies could go bankrupt and your stocks could retreat badly. Similarly, cryptocurrency has an added layer of risk. It is completely based on demand and supply patterns. And unlike other currencies, it has a very limited supply, thereby making it prone to more swings. So before you add an asset to your portfolio, make sure to weigh your risk appetite.
Final Verdict: Stocks VS. Cryptocurrency
All in all, cryptocurrency investment has a much higher ROI than stock investment. And observing the past projections it is evident that the crypto market is much more stable than skeptics believe. Although it witnessed sharp ups and downs, the overall impact was positive. Meanwhile, the drawbacks of investing in cryptocurrency can be easily addressed if proper research, time, and risk management plan are put in the place. Further, aided by easily accessible tools for buying cryptocurrency (Android and iOS) can make crypto investment a breeze for investors.
As believed by experts, crypto is a smart investment option. It is long term player that proposes a bright future ahead. Once the regulations regarding cryptocurrency are implemented the growth in the crypto market is going to witness exponential trends. But it is also always advisable to gauge pros and cons before entering into any kind of investment.
Jeff Morgan is currently associated with NetworksGrid as a technical content writer. Through his long years of experience in the IT industry, he has mastered the art of writing quality, engaging and unique content related to IT solutions used by businesses. Topics like network security, managed firewall services, managed IT services and cloud computing like Best QuickBooks desktop hosting are his favorite.