Even if you’ve been skeptical about them in the past, it’s hard to not pay attention to cryptocurrencies with the way markets are behaving at the moment. Now could be the perfect time to jump in, but cryptocurrencies are still not the best option for everyone. And, if you’re a beginner who feels like crypto is more accessible than stocks, think again. While they can be a great asset and everyone should consider having crypto in their portfolio, they’re not necessarily a clear winner over stocks. So, where should you invest your money, crypto, or stocks?
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Stocks are More Stable
Cryptocurrencies are extremely volatile which makes them still a questionable asset for the long term. While stocks can be volatile too, there are so many different options and you can adapt your strategy to get steady returns over the long run.
Index funds, for instance, allow you to invest in a large basket of stocks or shadow a particular index. You can also pick index funds based on how stable they are. There is no crypto that we can say is very stable at the moment if we exclude stablecoins, which can’t really be used as investments. So, if you have a hard time dealing with sharp movements in markets, crypto markets might be a bit too volatile for you.
Crypto Has Great Short-Term Potential
Volatility is not always a bad thing, however. Crypto markets can go up as fast as they can go down and if you can time your movements correctly, you could make good profits in the short term. We also have a better idea of what the floor value for cryptocurrencies is, which makes down movements a bit more predictable. So, if your goal is to speculate, you’ll have a great time with crypto and tons of opportunities to capitalize on market movements.
Crypto is Not as Tightly Regulated
One thing you should know about cryptocurrency is that it’s not as tightly regulated as the stock market. So, you’ll need to know how to keep your funds safe, and it all starts with picking the right exchange.
You will need to do your research about any exchange before you pick one and check what the community says about it. You have to know what storage method they use for users’ funds and the type of security protocols they have for accounts. Also, under no circumstances should you leave money on an exchange as they could disappear or steal your cash.
You need to use a crypto wallet instead. If you’re looking for a Bitcoin Wallet Canada, there are tons of different options you can choose from. Just make sure that you know the difference between the different types of wallets and pick a wallet that has a good track record for safety.
At the end of the day, only you can tell which option between stocks and crypto is the best for you. The best strategy is really to hold both, but be careful to not put all your eggs in the crypto basket.