One of the most common question that comes in every investor’s mind “Should I Invest in Cryptocurrency or Stocks”
Before we analyze which one you should invest in , let us understand few important things about Cryptocurrency and Stocks.
What is the difference between Cryptocurrency and Stocks?
Cryptocurrency as name suggests was to one day become a currency . It was supposed to be commonly accepted in place of cash and cards. If we look at it today, its popular to buy crypto as an asset that could hold value but not currency. Many people compare crypto with stocks, even though they’re completely different .
Some of the Major differences between Crypto and Stocks.
When you buy crypto, you are holding that amount of a digital currency. It may be possible one day to use crypto in transactions like other currencies. As of today it can’t be used as currency and faces many backlashes by multiple countries recently by China .
Stocks on the other hand are offered by companies as equity or ownership in that company.
Crypto’s can see a sudden and drastic changes in value that can happen without warning. Major Reason behind this could be crypto exchange running 24/7 and a bad news coming during your sleep time 😊
Stocks, on the other hand, are directly linked to companies . These Companies must declare their current result to public and how they expect to do in the future.
Investors can use these publicly provided information’s to reduce the risk of volatility while invested in Stocks.
How are these governed:
Stocks and Stock Markets are mainly governed by Federal agencies like the US Securities and Exchanges Commission (SEC) or Securities and Exchange Board of India (SEBI) . These Central Agencies have authority over the entire stock market to protect investor and promote fair trade.
On the Other Hand, there is no central authority regulating the Crypto market. Each Crypto is governed by those involved in growing and maintaining its technology.
Hours of operation:
Crypto market runs 24/7 and 365 days a year. You’ll see the price of crypto change whole day and whole year. There is no Holiday for Crypto baring few unknowns.
The stock market only works full time on business days . There is a defined set of rules that Stock Market Follows.
Why Crypto is getting traction among Youngsters.
The younger generation in India/World has started to explore investment in Crypto and had entered in market taking it as an asset diversification . Crypto as an asset class has given a huge return on investment recently and is completely digital. This eliminates storage and maintenance cost like Gold.
So, which Asset should you invest in?
Cryptocurrency is exciting asset that has attracted more people specially youngsters in a short time and has also returned huge returns on investment. Risk with Crypto is Govts are not legalizing it making it a risky instrument. Investors looking to invest in it should consider this fact and only invest a amount that they can afford to lose.
Stocks on the other hands are governed and regulated by Central Bodies making it more robust and safe. Yes, Its risky due to market volatility but it’s a part of main stream investment module and will keep your money Safe until you chose some bad stocks to invest in.
Hope you liked our Article, do read our other article on “Top 3 Algo Trading Software” https://equitygyan74899394.wordpress.com/2021/11/03/top-3-algo-trading-software/”