Crypto Or Stocks?
When you buy a share of stock, you're investing in a particular company. With Crypto, you buy tokens of a particular currency to use them as a form of payment. Cryptocurrency has been around for years but in more recent times, investors have been clamoring over it. The advantage of investing in cryptocurrency over stocks is that there's greater potential for reward but is generally riskier than stocks. Stocks have been around for centuries which makes them ultimately a reliable source, but there is risk in both. Before making your decision there are a few things to consider:
Risk Tolerance the stock market can be very volatile, and at times, only the tiniest thing can factor into a company’s stock price to plummet. With stocks comes the risk of losing value overnight due to political turbulence and general economic changes. Cryptocurrency can be the same way and with social media, they greatly influence the success of a company. The risk of cryptocurrency is its age as it is hard to know how long it will be around for.Investing Horizon.
Stocks have been viewed as a valuable long-term investment, even with its potential negative return. Because cryptocurrency is newer, it may not be the most viable long-term investment. It is suggested that because investors who have stuck with stocks for decades still leave financially ahead that Crypto is best used for short-term investments.