Stocks vs Crypto: What’s the Better Investment?

An investor who bought $10,000 worth of Tesla shares a decade ago would have about $2 million in 2022. If the same investor bought $10K worth of bitcoin at the same time, the investment would be well over $200 million today.

So, stocks vs crypto: Where should you put your money?

It’s clear that there’s a lot of money to be made in both markets, but which is the better investment? Of course, many people would choose the market with the highest returns, but as any seasoned investor will tell you, there’s more to investing than meets the eye.

In this guide, we’re digging into ins and outs of cryptocurrency and stocks, helping you make an informed decision on where to invest.

Investing in the Stock Market

The stock market has always been America’s investment market of choice. At the last count, 56 percent of American adults held an investment in the stock market.

It’s not hard to find a reason why millions of investors love the stock market. Since the Financial Crisis of 2008, the stock market has been on a strong bull run – the longest in history.

With plenty of patience and a good pick of stocks, any investor can earn a windfall. As the share value of the companies they invested in increases, so does the value of their investment. Some companies also pay dividend earnings to investors from time to time.

It’s not all rosy in the stock market, though. Families have faced financial destruction because of stock market losses. Individuals investing with borrowed money have sunk into debt because of the stock market. On that note, if you’re in debt you can learn more about how debt counseling will help you.

You see, there’s no guarantee the shares you buy will increase in value. The price can plummet to zero, effectively going down with the shareholders. Economic recessions can cause the stock market to fall or even crash.

It’s for this reason investing in stocks requires a calculated approach. Rookie investors are advised to seek the advice of professional investors before putting their money on the line.

Investing in Cryptocurrency

crypto investment san diego ca is a new kid on the block. The first crypto, bitcoin, was created in 2009, but the crypto market has quickly morphed into a $3 trillion juggernaut.

It still has a long way to go to compete with the stock market, but it’s churning out millionaires just as fast. Investors who buy a coin in its early days have the greatest potential of banking good money when the coin’s value rises substantially, sometimes in a fortnight.

However, the cryptocurrency market is ultra-volatile. Coins can shed value just as fast as they can gain it. For reference, the price of bitcoin shot to an all-time high of $65,000 in Nov 2021, but it’s down to $30,000 as of May 2022. In between, there have been wild swings, enough to make any investor crazy.

There’s also the issue of regulation. While governments are grappling to find ways to regulate crypto, the market is largely a lawless den. This has led to the rise of crypto scams and pump and dump schemes, catching many unsuspecting investors unawares.

Stocks vs Crypto: Which Way to Go?

The stocks vs crypto debate isn’t going to be settled any time soon. Both markets have cult followers, but while we can all agree that they both have a place in an investor’s portfolio, the stock market presents better opportunities and stability. In the cryptocurrency world, it’s always a wild ride – sometimes a ride into unimaginable riches.

Stay tuned to our blog for more investing advice and insights.