Cryptocurrency vs stocks – which and is more profitable best to invest in 2021
Hi there, are you planning on making an investment on cryptocurrency or stocks, or are you confused on which one to invest on today I’m going to be show you in this article between cryptocurrency and stock which is more easier, riskier, and profitable to invest on so read on.
First of all i am going to define what is cryptocurrency and stocks.
What is cryptocurrency.
Cryptocurrency is a digital currency used as a form of payment to purchase or sales of goods and services online.
now let’s talk about stocks.
What is stocks.
A stock is a procurement or security of ownership of a fraction or share of a company or corporation, it also entitles you as owner of the stock for a proportion of the company’s profits, assets and it equals according to the amount of stock you own.
Cryptocurrency vs stocks.
You know in life we make choices and preference example: tea or coffee, cats or dogs, chocolate or sweets. well that’s by the way so let’s dive into todays topic.
If you are new in the investment world you have a lot of questions, for example: do I invest in cryptocurrency or stocks.
Stocks has a long standing record and is slightly easy to understand and has a stronghold on the society because it has been active for many years and has lower risk and volatility.
On like cryptocurrency which is just 12 years old and is fast-growing in the society, for example: Bitcoin has grown from $0.78 to $45,000+ today.
And is actually lower because it was higher than that. cryptocurrency usually experience high volatility depending on the rate of investment, demand and supply.
Also stocks are provided by legitimate companies which makes more profits they work on physical asset as part of valuations.
cryptocurrency is a digital currency which the profit rate increase the more they gets high rate demand, supply and investors.
Stocks has lower risks in investing because in stocks if you invest in a profitable and growing standard company or corporation, you are tend to make more profit.
You know both stocks and cryptocurrency experience volatility, but stocks has proven to come back in price and revenue after experiencing volatility.
If you invest in stocks you invest on a good company or corporation you are tend to make good profit except the company gets bankrupt.
While cryptocurrency mostly depend on supply and demand cryptocurrency has any disadvantages.
- prices are highly unpredictable.
- high risk of fraud.
- less regulation.
- price can easily be manipulated
With cryptocurrency you can purchases a particular kind of currency use it as a payment method, or keep it hoping they might increase in value or price.
Also crypto on the other hand wasn’t made for investment, it was made purposely to make payment method easier but today people use it as an investment because of the massive increase of its prices.
because you might buy a crypto for $10 today wake up tomorrow it is now $30. So you can actually make a lot of money online and you can actually also you lose a lot of money.
Cryptocurrency vs stocks which is more profitable?
The merit or advantages of investing in cryptocurrency over stock is that, cryptocurrency has high potential for increasing price.
that is investing in cryptocurrency you gain more profits within a short period of time,and you can also lose a lot within a short period of time too but stocks has good profits too but takes sometime.
Well both stocks and crypto are both very profitable but cryptocurrency receives more profits within a short period of time than that of stocks.
Despite the explosive growth of the value or price of cryptocurrency it is more riskier than that of stocks.
However between stocks and cryptocurrency, stock is a more safer option to invest on but that doesn’t mean you should not invest in cryptocurrency just be self assured that you have to have high tolerance for risk, and only invest amounts or funds you can afford to lose.
Like the photo above you can see how the price of cryptocurrency i.e Bitcoin in the image increases and decreases daily.
Investing on either cryptocurrency or stocks they both have high risk and have volatity, but for my opinion I will prefer to invest in stocks, but note that I am not an investment of financial adviser I’m just talking from my experience.
so thanks for reading, please which do you prefer after reading this article and which is more safe and profitable for you please tell us in the comment section below thanks again for Reading.