Stocks vs. Crypto’s! Which Is Better?

Before the emergence of cryptocurrencies, investors were satisfied to invest in equities, commodities, and Forex.

However, during the last decade, cryptocurrency has erupted on the investment scene and shown to be a revolutionary new asset class, making many people extremely wealthy.

Many people are questioning if stocks or cryptos are a superior investment vehicle.

To begin with, any basic analysis shows that cryptos are here to stay.

In 2021, it will have a market value of $1 trillion.

As of 2022, there were one billion crypto users globally.

18,000 businesses globally now accept cryptocurrencies as payment. It has compelled many of the world's largest corporations to begin incorporating cryptos into their infrastructure, while financial institutions are also embracing digital currencies as a method of trade.

National governments are even planning to make digital money legal tender.

These developments are important to consider as an investor because they can help when deciding whether or not to start trading investments in cryptos.

Indeed, it seems many investors are deciding to ditch stocks altogether and are focusing their investments on cryptos only.

So which is better? Stocks or Cryptos?

The key distinctions between the two assets must be examined.

To begin with, cryptos are significantly more volatile than equities.

The market's ups and downs have been spectacular in recent years.

For example, Bitcoin peaked around $69,000 in 2021 before falling to $17,000 at the time of writing.

What causes such swings?

The cryptocurrency market is mostly driven by pure speculation, which is influenced by sentiment.

Prices alter (sometimes dramatically!) as emotions (feelings) shift.

So investors acquire cryptocurrency in the expectation that someone would buy it from them for a higher price than they paid.

Stocks and prices, on the other hand, have been fairly steady over the previous 13-year bull market.

But, in early 2022, the market abruptly shifted from Bull to Bear, giving a plethora of low-cost stocks in well-known corporations - a fire sale that investors all around the world rushed on.

As crypto prices fell, that meant there were tremendous possibilities in BOTH equities and cryptos.

Another clear distinction is that stock purchases are often made for the long term. You are purchasing a stake of a real corporation.

Cryptocurrencies are digital, not tangible.

Furthermore, investing in cryptos is far riskier than investing in equities.

Stock exchanges, after all, have been operating for decades. They can be relied on.

Many new cryptocurrencies are like babies in the adult world of equities.

So…

Making a decision:

If you are an investor or are thinking about becoming one and are unsure whether to focus on stocks or cryptos, consider this.

Put money into BOTH.

So why not ?

It's called diversification, and when all factors are considered, investing in both cryptos and equities makes perfect sense.

Especially given the present economic climate and bear market that affects both assets.

Investing in both is definitely feasible. It's an excellent strategy since you can go long on equities and short on cryptos.

If you are interested in learning more about trading & investing for beginners, check out IM Insider, a bi-weekly newsletter delivered directly to your inbox, where our Traders review 600+ stocks and cryptos every single month to find the most lucrative, tactical, and timely opportunities that YOU can take advantage of.

In effect, when going long and short, you are doubling your chances of not only making sound investments but lucrative ones.

But that doesn’t mean throwing your money at everything that moves!

That would be extremely foolish.

That is why research is always something you must do, whether you are investing in stocks or cryptos.

Or both.

You must understand everything about the company or crypto project before deciding to invest in them to ensure you do not make a bad investment.

There are all sorts of things to look out for, which can be learned on any good investment course.

Conclusion:

If you think investing and trading is a way to get rich quickly, you are mistaken.

You should think about NOT investing at all in either stocks or cryptos (or both) if you believe it are the fast way to wealth.

To be successful at trading and investing requires a whole set of disciplines as well as having money to invest that you can afford to put at risk.

To find out more learn crypto trading, get in touch now, we are always happy to help.

About Investment Mastery UK:

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