Should you invest in bitcoin or stocks? Is one better than the other?
IN 2021, CRYPTOCURRENCIES had a mixed year, with some people making a fortune on the market with altcoins and others losing money due to the bitcoin downturn, while stock investors had a similar experience. Is it preferable to trade cryptocurrencies or stocks, and which is better?
Over the previous year, the cryptocurrency market has been subjected to a number of shocks, for better or worse. Altcoins like DOGE sprang from nowhere and rose to stratospheric heights, while bitcoin and other established tokens saw their value plummet. The stock market, which witnessed an underdog rise from the depths this year in GME, followed a similar pattern of fast shifts.
Investors will take advantage of any opportunity to support a new product.
Although both cryptocurrencies and equities have the potential for big profits, seasoned investors are said to prefer one over the other.
According to a recent study, a minority of investors consider cryptocurrency to be a less risky investment.
Stake, a financial trading platform, polled over 5,000 international traders about their preferences.
Of those surveyed, 51% had prior experience investing in cryptocurrencies, and 90% had profited from their investments.
However, 84 percent said they thought crypto investments were “much riskier” than conventional types of investing.
Only 16% of respondents support trading with decentralized currencies, according to the data.
A further 91 percent stated they preferred stock market trading over the cryptocurrency counterpart.
Stake founder and CEO Matthew Leibowitz said the cryptocurrency market is “crazy right now”.
He claims that some “major investment strategists” make wild predictions, and that cryptocurrency continues to attract new investors.
However, some people are still apprehensive about digging too deep, according to the study.
Mr. Leibowitz also dissected the forces at work in the bitcoin market’s recent fluctuations.
According to him, the recent activity is the result of increased desire in making money and active self-promotion by other businesses.
“When you look at the bitcoin surge over the last year, you can see there are a couple of important forces behind it,” he said.
“One, with the pandemic, there has been an increased appetite for home trading and people looking to magnify their wealth quickly.”
“And two, a growing number of big-name corporations are investing in it, as well as merchants who accept bitcoin as a means of payment.
“Instead of investing directly in the currency, investors are increasingly searching for proxy exposure.”
Some have been relentlessly promoted by celebrities. “Brinkwire News in Condensed Form.”