Cryptocurrency vs Stocks

Cryptocurrency vs Stocks

I wanna discuss with you on todays blog which one is better and what are the pro and cons of each. what made me compiled to write this was recent news that JP Morgan a typical investing firm who doesn't get into crypto recently stated that they would get into the cryptocurrency market. This is not normal because jp Morgan was known for hatting crypto and like stocks more. How ever it seems their minds have changed and now are adopting cryptocurrency. This got me thinking if one of the biggest investing firms is moving towards crypto it means something. So it got me thinking which is the better investment crypto or stocks? Before we get into the blog i just want to say this is not financial advice so don't take it as such. lets now get into the blog post and see which is the better investment.       

Stocks

So lets discuss the stock market. Everyone should know what's stocks are they are the most typical investment you will ever hear about. However if you haven't let me give you a short explanation real quick. Stocks are shares that you have in a company. A share is like owning a piece of the company essentially. Now however much money you invest into a company that's how many shares you get. The price of stocks vary by company so its not all the same. Now that you got knowledge on stocks lets look into the pro and cons of them.   

Pros

1. safe investment less volatile then cryptos  

2. easier to predict growth and downtrends then crypto 

3. easier to research and keep up with then cryptos  

4. Tax laws on stocks are clear and provided  

Cons

1. Isn't FDIC Backed or insured    

2. Trading isn't instant  

3. Taxed if you do day trading or acquire a stock to sell short term less then a year typically  

4. can't Trade or invest 24/7 the market closes for a couple hours this could also be a pro depends on how you look at it     

Cryptocurrency

Now we'll be moving onto the cryptocurrency market. This market Is a lot more different then your stock market. So don't go off assuming that they are the same cause they aren't. So lets get into what cryptos are. Cryptocurrencies are digital currencies that can be bought and traded on a market. What makes them different from other currencies in the world is a whole lot. But lets just cover the basics real quick. Depending on the crypto the transactions between people can be anonymous. Cryptos also usually have projects tied to them that gives them some sort of utility. Some have code written into them which gives them smart contracts and allows for a lot to be done with cryptos. then there are meme coins that are just a joke and only exist as a sort of retail investor dump but aren't like shitcoins which are scams.  If you want more info on cryptos you can read my blog post on them.   

Pros

1. Returns are a lot better then stocks up to 100x better   

2. Coinbase Crypto Exchange is FDIC insured(This is great for our American investors it means a certain portion of you investments held on this exchanged are covered if coinbase ever fails or something like a hack happens.)   

3. Can be traded at anytime lots of tools can be used for free to invest and trade while your sleeping or missing out on the market  

4. No penalties or taxes for day trading or selling short term  

Cons

1. Extremely volatile   

2. can be easily manipulated we can see this in the market when celbs or influencers say something about cryptos or post somethin about them( cough cough Elon musk).   

3. news events impact the market deeply as retail investors either dump or sells as news come out  

4. How well the market is doing all depends on how well the U.S dollar is doing and how well the stock market is.

My thoughts 

Finally here is what I think about cryptos and stocks. If you ask me stocks are great for long term investments and building up your retirement. Cryptos on the other hand are a lot better for day trading and making profits in the short term. Don't take this as cryptos aren't great for investing into your retirement as they still are. You just have to find the right crypto for the long term for me personally that would be cryptos like bitcoin, Ethereum, MATIC, and ICP. Overall both are good investments and it just all depends on what your comfortable investing into and which ones are doing better at the moment.     

My Final Words 

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