Crypto VS Stock: Is One Superior?
Introduction
Comparing the superiority of cryptocurrencies and stocks is going to be a little difficult because both of them are seen as an instrument for investments. Stocks have been present long before cryptocurrencies came into existence and it was the first form of investment. Cryptocurrencies are the new form of financial investment despite it being developed more than 20 years ago, and it’s a form of investment that is solely prone to risk and controlled by volatility, and stocks are considered to be assets that yields returns on long-term and short-term.
Despite both being considered a good form of investment, top traders who started with stock are still sceptical about cryptocurrencies and they haven’t fully digested their existence which is why most of them consider Bitcoin as an alternative form of investment from stocks or other types of investment. However, both assets are considered profitable by traders and that depends on how you invest in them to yield the desired profits.
Cryptocurrency and Stock
Cryptocurrencies are digital assets because they exist in digital form and the market value basically function based on supply and demand by investors they are powered by blockchain technologies or network, they can be private blockchains, public blockchains, and hybrid and consortium blockchain. Cryptocurrencies are also decentralized and they are not controlled by any authorised or government bodies.
In the aspect of stock, they are digital but they are considered value or ownership of a company and when you buy a stock, it’s considered that you now have partial ownership of the company or in simple terms, you now own a small piece of the company depending on the amount of stock bought. Also, there are benefits of you buying a company’s stock and that is, you get to receive dividends, and higher returns and aside from acquiring wealth it makes you stay ahead of inflation when it hits.
Key difference
| Crypto | Stock |
|---|---|
| No proof of ownership | Proof of Ownership |
| Passive income when staked or lend out | Recieve Dividends |
| Can be bought at any time in exchange platforms | Fixed time and date to be bought (Limited time opening) |
| Decentralized | Regulated |
| Inflation Resistant | 50/50 based on inflation resistance |
| Returns not guaranteed | Returns not guaranteed |
Both Crypto and Stock are a good form of investment depending on the portfolio you are building but to be sure of a better choice, it’s important to carry out good research on both to weigh your options.
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"Crypto is the only free market left in the world." - King Arthur, Co-founder of Bitmex
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