Is Bitcoin and Altcoins better than Stocks to invest? What is reality.
Many people are more interested in investing in cryptocurrency because it is more profitable than the stock market, which has now become a very important investment platform among the younger generation.
Not only this but big investors are also investing a few percent in many cryptocurrencies including Bitcoin.
But at the same time, while many countries, including China, are banning cryptocurrency trading and manufacturing altogether, countries such as the United States, Indonesia, Thailand, and India are trying to regulate and regulate cryptocurrency.
In this situation an important question has arisen among investors from all walks of life as to whether it is better to invest in Bitcoin than to invest in the stock market.
Bitcoin profit
The return on investment in Bitcoin in the current year has topped the all-round investment margin. Investing in Bitcoin has yielded a return of 291 percent over the past year. At the same time, the Dow Jones Industrial Average, the main US stock market index, rose only 24.35 percent.
Stocks Bitcoin
Well first let us know what is the difference between stocks and bitcoin. A stock is valued and divided into shares based on the financial position and trading of a company. As the profit and trade in the company increase, so does the value of the shares. This is the basis, as well as the share price will rise based on the future growth of the company.
3 key factors
Bitcoin is a digital asset whose price is based on 3 key factors. The value of bitcoin rises based on demand, supply and adoption. Similarly both stocks and bitcoin are stored digitally and traded digitally. There is no change in this.
Stock pricing
If you think you need to buy shares of a company now you can study the basic finances and business of this company and make a decision. But if you want to buy Bitcoin there is no data to analyze, as well as Bitcoin does not have a physical asset. This is a major problem for both new and large investors.
Decentralized architecture
Bitcoin is based on a decentralized architecture, which means anyone can create Bitcoin anytime, anywhere. But the shares are not like that the adoption company can only create with the approval of the government bodies. Thus stocks are much safer than Bitcoin.
Vulnerability to theft
On top of all this Bitcoin can be hacked at any time i.e. online. But digital piracy is impossible because the stock market is in a systematic structure. Thus stocks are more secure than bitcoin or other cryptocurrencies.
Price resolution
And there are certain factors that determine or predict the price of a stock, but Bitcoin does not. But at the same time the value of Bitcoin will rise dramatically if it is adopted (adopted) in parallel to currencies such as the Dollar, Rupee, Pound, Yuan and Euro. But the question is whether this is possible ..? When is this possible ..? Is another question.
Risk measurement
Bitcoin investing has a higher risk than just investing in stocks. Similarly profit and loss measurements vary depending on the risk measurement. And investors need to be more vigilant as all cryptocurrencies, including Bitcoin, currently have mixed views around the world. Furthermore, the TamilGurditans site advises young investors to invest in bitcoin with more focus than equity investment.
The price of cryptocurrency
In this context, let us now look at the price situation of the world's leading cryptocurrency today
Bitcoin - $ 44,906 (up 3.90 percent), Opposite - up $ 3,110.62 (up 3.72 percent), Ripple - up $ 0.970941 (up 3.40 percent), Cardano - up $ 2.15 (up 2.94 percent), Polcad - up 29.65 percent (3.40 percent). Dozcoin - $ 0.2061 (up 2.33 percent).