- All
- Analytics
- Technical Analysis
- Trading
- Blockchain
- DeFi
- Guides
- Company News
- Educational
- Opinion
- Price Predictions
- Tools
- Market News
- News
- Trading cases
- Practical guides
- Exchanges
- Trading signals
- Cryptocurrency
- Crypto bots
- Other
Become a crypto master
Learn everything about crypto,
trading and bots
Cryptocurrency vs Stocks–Which is the Better Investment?
From
Start Trading on 3Commas Today
Get full access to all 3Commas trading tools with free trial period
Retirement is years away. But the very thing you should be looking forward to right now is honestly scaring you more than you’d care to admit.
Will you truly be ready for your golden years financially?
You’ve already invested in stocks, but you keep hearing about bitcoin, too. And you wonder if you’re missing out by not investing in it, too.
Research shows that more millennials (those ages 18 to 34) know about bitcoin than those ages 65 and up.
Also, 30% of them would rather put $1,000 into bitcoin versus stock.
So, exactly which is the better investment opportunity? Here’s a glimpse at the difference between investing in cryptocurrency vs stocks.
Let’s get started!
Cryptocurrency vs Stocks
In our discussion of stocks here, we’ll focus on the major tech companies’ stocks. This is because they’ve performed exceptionally well during the last five years.
The stocks we’re specifically referring to are often called the FANG stocks (Facebook, Google, Amazon, Netflix).
These companies have all seen major returns during the last five years. Netflix takes the lead in this area, followed by Amazon and then Google.
Because of their major returns, the FANG assets have attracted a great deal of attention lately.
But did you know that cryptocurrencies, such as bitcoin, can provide even greater returns for today’s investors as well?
Research shows that bitcoin’s returns during the last five years have been greater than those for all of the world’s other currencies.
When you look at bitcoin’s potential for returns, plus its resilience and reliability, it’s easy to see why so many investors are becoming increasingly interested in cryptocurrencies.
A Look at Your Retirement Portfolio
Bitcoin is quickly entering more people’s radar as an investment option for their retirement portfolios.
If investors had bought bitcoin in 2013 (it was near zero), they would currently be returning profits.
However, this cryptocurrency’s price has shown a lot of growth and fluctuation over the years.
For this reason, it’s been challenging for the typical investor to get involved in bitcoin with confidence.
Of course, this comes with the territory of pricing emergent digital assets that don’t have a predecessor.
These days, though, the market has become more secure and liquid.
On top of this, regulatory guidance has become increasingly strong.
As a result of this, the bitcoin market is maturing, and cryptocurrency is becoming more widely adopted.
In fact, research shows that the number of bitcoin transactions each day has increased upwards of a couple hundred percent during the last couple of years.
In light of this, investors have a reason to feel confident about cryptocurrency’s existence and viability long term.
After all, it would be hard to shut down cryptocurrency at this point.
More on Bitcoin’s Long-term Potential
What makes bitcoin an especially smart investment today? It has proven to remain successful even during economic downturns lasting several years.
Only 21 million bitcoins can be mined. This asset class’s scarcity coupled with the increasing demand for it abroad makes this cryptocurrency’s growth a safe bet in the medium term.
Also, the increasing difficulty of mining bitcoin places extra pressure on exchange pricing globally. As a result, miners can successfully meet their costs of operation.
Another important consideration is the security of this digital currency.
To date, the bitcoin network hasn’t been hacked, and the network continues to operate securely and properly.
The Truth about Hedging Against Downfalls
FANG stocks and other traditional assets have a tendency to correlate and cluster.
However, bitcoin is independent of the traditional pressures that often distort markets.
These pressures include, for example, company performance, public stakeholders’ institutional confidence and reporting at the end of the quarter.
As a result, bitcoin offers a wonderful hedge against the possible downfalls of your traditional assets.
The fact that it’s an open-source, distributed project that has no centralized authorities or organization overseeing it makes it that much more attractive.
Final Note about Bitcoin and Stocks, Especially Amazon Stock
When it comes to productivity, the FANG assets are no doubt productive. Amazon is especially recognized for being bullish.
In fact, Evercore voted Amazon as the best stock in 2017.
However, bitcoin is even more productive than the established Amazon has been.
If you were to compare bitcoin’s and Amazon’s returns, you’d see that Amazon’s outperformed bitcoin’s in just one in four years.
This digital currency has also outpaced the other strong FANG stocks when it comes to performance.
So, what’s the key takeaway here?
You, like many other investors, may understandably be nervous about taking the plunge into bitcoin investing.
However, its historical performance in the world of investing speaks for itself.
You can rest assured that this cryptocurrency will continue to generate strong returns in the years to come.
How We Can Help
We offer convenient tools for diving into the world of cryptocurrency trading.
With our help, you can automate your trading of cryptocurrency and receive guidance from the world’s best traders.
This is how our SmartTrade platform works: You can easily open trades and plan both Take Profit and Stop Loss simultaneously.
Let’s say that you would like to make a purchase when a cryptocurrency price reaches a certain level. Or maybe you’d like to set step TPs for your orders.
Perhaps you’re interested in selling your current position at a target price.
You can effortlessly do all of this with the SmartTrade terminal, which you can access from any device.
Get in touch with us to find out more about cryptocurrency vs stocks and why moving toward cryptocurrency may be the best financial move you could make.
With our help, you can start earning a profit in just 10 minutes, and you can be well on your way to fulfilling your financial and retirement goals long term.
A proven leader, successful at establishing operational excellence and building high-performance teams with a sharp focus on value creation and customer success.