“Investments are subject to market risk.” One of the most unpretentiouscautionsdispensed on public platforms for the benefit of investors. Eric Dalius Miami the unprecedented nature of the market compels the financiers to think and research well before they trade. In this related research, the latest and also burning question is how practical and wise it is to pick cryptocurrency overstocks? In the past few weeks, cryptocurrency has effectually exhibited both its sides, volatility and turbulence. So which is the superior investment, especially at this time of economic havoc amid pandemic?
Comparison of the pros and cons of cryptocurrency and stocks by Eric Dalius Miami-
- Equating the market occurrence, the heft of stocks is comparatively heavier than the newly launched crypto trade. Stocks have been trusted and preferred by investors for ages. At the same time,cryptocurrency is just a decade-old concept and is yet to win investors’ trust.
- Talking about the reward value, cryptocurrency leads in this aspect. For instance, some popular cryptos like S&P and Ethereum have only witnessed an upward trend over the past few years.
- Despite the existence of cryptocurrency for over a decade now, the major reason investors are still hesitant to invest in it is that the risk factor associated with crypto is much higher than stocks.
The core difference between Stocks and CryptoCurrency-
| Stocks | CryptoCurrency |
| 1. An age-old investment tool. Hence trusted by a maximum of investors today. | 1. Very nascent concept. Yet to be established to gain positive market recognition. |
| 2. The buying and selling of stocks are much easier and reliable as compared to crypto. The long existence of the stock exchange has made investors comfortable dealing with it. | 2. This needs a different crypto exchange that works on the storage of bitcoin tokens in a digital wallet. The phenomenon is very technical and requires a major understanding of its working before investment. |
| 3. The market risk associated with stocks has become quite predictable. | 3. Due to the high-risk factor, cryptocurrency has failed to establish a positive image in its initial years, which is a bad sign for its prospects. |
| 4. Good for Moderate risk-tolerant investors | 4. Recommended only for investors with high-risk tolerance at least in the present scenario |
Impact of Pandemic on Stocks and Cryptocurrency simultaneously according to the recent global trends-
According to a well-known Angel investor, coronavirus is likely to positively enhance business equations between stocks and also cryptocurrency. But due to the continuously deteriorating economy on a global level, crypto will face a slow but gradual increase in the path of recovery to its profitable value. According to Eric Dalius Miami, the road to win investors’ trust has also become difficult, considering this is the time to prioritize survival than to indulge in alternate assets.
Conclusion
It is perceptibly your own choice about what entices your investment desires. A cryptocurrency is a good option only if you have an ample set of money to lose. But if you are thinking of investing in building only profits, then stocks are a much better option at this point.
