Can cryptocurrency compare with traditional investment?

Cryptocurrencies are decentralized in nature, so they are likely to become a stable alternative to other investment products. The most common traditional investments that people participate in the stock market, bonds, foreign exchange (foreign exchange), and precious metals.

CRYPTO vs. stock

First, we will discuss how cryptocurrencies compare to the stock market. Stocks are the closest comparison in the traditional investment field, and can be compared with cryptocurrencies, because when the market is strong, the benefits of price increases can usually be expected, and both markets (stocks and cryptocurrencies) have their bad Time.

As the stock market has a long history, there can usually be better forecasts to guide investors in the future. However, stocks face different types of risks, including commercial and financial risks, purchasing power risks, market risks, government controls and regulations, and even overall economic conditions.

In addition, because there are actually thousands of stocks to choose from, it may be difficult for investors to predict the risk of the company's future performance.

Crypto vs Bond

Next is a comparison between cryptocurrencies and bonds. Bonds are often referred to as fixed income securities, which places them in a generally different category from stocks and cryptocurrencies. Regardless of the investment method, bonds allow investors to borrow money from third-party entities for a period of time, and investors will regularly receive fixed interest.

Compared with cryptocurrencies and stocks, bonds are generally considered to have lower risks and provide higher current income. Regardless of current income, in the long run, the probability of high returns is much lower compared to cryptocurrencies and stocks, but since the risk is relatively low, this can be expected.

Cryptocurrency to foreign exchange

Next, we will discuss foreign exchange, also known as foreign exchange. Investors who participate in and actively participate in the foreign exchange market buy and sell foreign exchange. Since capital gains depend entirely on the country ’s economic situation, this type of investment has a higher risk than cryptocurrencies.

Encryption and precious metals

Last but not least is the comparison of precious metal investments with cryptocurrencies.

Interestingly, Kiana Danial, CEO of Invest Diva, mentioned in the book  "When someone tells you that cryptocurrencies have no intrinsic value, they are worthless, so precious metal comparisons are actually the best argument " This is the main reason why people will consider investing in precious metals in today's era, mainly because they will buy such items for jewelry or other currencies.

Market sentiment is the only factor that determines the value of gold and silver. Such risks involved in investing in precious metals include their portability, possible import taxes, and the need for a high degree of security.

Through these comparisons, we can see that although cryptocurrency is still a fairly new form of alternative currency and investment, it has already achieved benefits that most traditional investments cannot. Just like any other market, the investment period and investment period will be poor, and the trading platform will have more understanding of trends and forecasts.

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