Is It Better To Invest in Bitcoin Than Buying Stocks?

By Prashant Jha

You already know that Bitcoins are not on the stock market, and now you are probably wondering which one will give you better value for money: stocks or Bitcoins. For investors who are starting out and even for ones who have been around a while, the question seems to be the same: is it better to invest in Bitcoin than buying stocks?

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As you already know, there are several differences between Bitcoin’s crypto market and the stock market: be it in terms of crypto’s higher volatility or in terms of the higher level of regulation that the stock market needs to adhere to.

Even though, underlying principles of trading remain more or less the same, cryptocurrency trading still requires a different approach than trading on stocks and shares.

Keeping these differences in mind, which is a better idea: buying Bitcoin or buying stocks? Let us take a closer look.

Buying Bitcoins versus Buying Stocks

When you buy Bitcoins, you must make peace with the fact that it is a volatile form of asset. Its price is likely to move up and down quite abruptly, without so much as a warning. As a result, you might just lose the money you invested in Bitcoins if its price suddenly plummets. On the flip side, however, you will enjoy a great deal of profits if the price suddenly spikes.

You May Also Read: Why Does The Price of Bitcoin Move So Much?

For Bitcoin investors in 2017, the latter was the case as the price suddenly shot skywards in the month of December.

However, since some time in 2018, the crypto market has been persistently bearish, refusing to give investors a bullish outbreak to recoup their investment. We can hope and predict all we want, that the Bitcoin bull run is coming. But the truth is that we simply don’t know if it is.

Considering, the high volatility of the crypto market and the lack of overarching, standardised regulations, buying Bitcoins makes sense only if you are a disciplined investor with a strategy in place.

Buying stocks, on the other hand, happens in a far more regulated environment. There is also less volatility and more opportunity for predicting price movements.

For stocks, you are investing in well-known companies and not a peer-to-peer, decentralized, digital currency. As a result, it is easier for you to assess how the company’s stocks may perform, in the light of its overall policy and performances.

Keeping these facts, in mind, on a comparative level, it makes more sense to buy stocks first before you dive into Bitcoins. The world of Bitcoin and other cryptocurrencies still remains a nascent and emerging tech space, which will need you to be slightly more knowledgeable and disciplined than you would have to be in the stock market.

Our suggestion would be to start slow, dip your toes into stocks first and then bet your money on Bitcoins, especially considering the Bitcoin bear market is hanging around for too long now.

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Prashant Jha

As a content writer Prashant believes in presenting complex topics in simple laymen terms. He is a tech enthusiast and an avid reader.

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