Bitcoin or Stocks: Which is a Better Investment?
Investing in the stock market is something of a timeless tradition. Financially savvy people have been doing it for decades. The average person with a low to mid income typically regarded investing in stocks as something only the rich do. It takes a lot of money and time to make a lot of money, so the average person didn’t see the immediate appeal.
When the cryptocurrency market showed up, people who never before cared about investing wanted a piece of the pie. Buyers and sellers were making big money in record time. Suddenly, many people changed the way they looked at investing.
Both Bitcoin and stocks have the potential to be valuable investments. Which one you should choose depends on your level of comfort and investment style.
Why People Choose Stocks Over Bitcoin
When the stock market crashes or drops significantly, it’s big news. Many rules and regulations have been put in place to keep the stock market as stable as it can be. People enjoy the reliability of the stock market. It’s long established, warning signs are clear to read, and it’s easy to see what a good move might be.
Stocks tend to grow at slow and steady rates. Many people invest in stocks while they’re still young and sell them when they hit retirement. They reinvest some and live off of the profits. Many companies use these stock schemes as a part of their retirement package.
People stick with stocks because they’re comfortable and they know what to expect. They maintain a “slow and steady wins the race” mentality, and they want their money to be there for them in the future. While some high powered traders make their living quickly moving around a ton of stocks, this isn’t how the average investor thinks. They’re not as concerned with their immediate needs as they are their future security.
Why People Choose Bitcoin Over Stocks
Bitcoin comes with instant gratification. Some people buy a piece of a Bitcoin and sell it at a high profit the very next day. The market is a little more disorganized, and everyone has their own motivations. This leads to drastic fluctuations as the value will soar one minute and plummet the next. While traditional investors are often too scared to put their money into a market that seems shaky, people who just want to make a few quick bucks have fewer reservations. They want “right now” money, rather than future money.
Making the Best Choice
Casual investors or new investors often feel like they have to make a choice between Bitcoin and stocks. The smart answer is both. They both have different advantages and disadvantages. A well rounded investor would put some money into Bitcoin and some money into traditional stocks to assure long term financial security.
