Stocks, Gold, or Bitcoin, Which Should We Bet on?
There’s no doubt that 2020 is facing us with an extremely high level of uncertainty. And when it comes to investments, not only are they far from being an exception, but the panic is even stronger, since foreseeing is extremely hard to do in the current economic and political context. The cryptocurrency market is even more unpredictable. So, are the firm believers in crypto trading right to keep investing, or is it time to try something more dependable? In a world where stocks, gold, and Bitcoin are all affected by the crisis, what should we choose?
Gold vs. Bitcoin
Gold may have a long history of being considered a safe haven, and the truth is it has proved to be a dependable investment. But times change, and in the current economic climate, it has started to lose ground because of its lack of utility. People need to invest in something that is easy to trade, carry and acquire, and gold is neither of those things.
On the other hand, Bitcoin and cryptocurrency, in general, has clear benefits and is extremely easy to transfer. From the point of view of utility and how easy it is to buy and trade, the crypto market has a considerable advantage over gold. Online trading is rising, and it’s not going to crash despite the volatile period we are experiencing.
Stocks or Crypto?
Both, if possible! Even if they are quite different in certain aspects, and their correlation is something specialists seem to disagree upon, the fact is stocks, and cryptocurrency go well together. Stocks have a longer tradition than Bitcoin, and trading them has turned into a fine yet not entirely perfected art. Cryptocurrency is a more recent trend, and it was supposed to move on its own trajectory, with no connection to the other types of currency. That remains to be seen; so far, we’ve seen different correlations and changing trends that are expected from something as difficult to predict as the crypto market. But one thing remains clear: as long as the stock market is rising, people have more money, and they are more open to investing in cryptocurrency.
Why Is It Still a Good Idea to Invest in Cryptocurrency?
Considering the ups and downs we’ve seen Bitcoin go through, and with all the pessimistic previsions we read, should we still trust that cryptocurrency is going to hold its ground and remain a smart investment? Well, first of all, the occasional drops are inevitable; it’s the same thing with stock markets. Trading includes a level of risk, and that’s not a bad thing. A volatile currency has the potential to bring significant gains. Speculation is at the very base of any type of trading. It’s all about how investors react to the economic or other kinds of changes.
The new, tokenised way of trading is bound to develop. The cryptocurrency market has proven to grow in cycles so far, just like the economy in general. Despite temporary drops, it’s bound to bounce back. The signs are already noticeable. It’s an adaptable and durable type of currency, and it’s winning new fans every month.
The main benefits of investing in cryptocurrency speak for themselves. Considering it’s a relatively new type of investment, the overall profits it has already brought are significant. It’s a safer alternative to the traditional stock trading, and it’s not necessarily connected to it. Cryptocurrency seems to make its own path, independent from the other markets. You get high levels of safety and privacy, without the involvement of third parties.
Cryptocurrency is the most versatile when it comes to selling it; you have various tools for that, which makes it very easy to sell at a fair price. It’s easy to use, compared to stock trading, you can even do it yourself from the comfort of your home, and nobody imposes how much or little you should invest.
Is It the Right Time to Invest?
The market capitalisation of cryptocurrency is rising. The road was paved by the first wave of investors that saw the potential behind the blockchain. In time, more adventure seekers have chosen this type of investment, causing the crypto market to grow and improve. Waiting for the right moment to make your debut in this field is not a good idea. There is no such thing as the right moment, not on such a speculative market.
So, the best thing to do is to just dive in, with the necessary precaution, and taking it one step at a time. Make a plan and gradually invest small amounts. Getting a BIT token can be the ideal first step. You will have the advantage of smart investment and the prospect of participating in the blockchain-based stock exchange in the near future.