In India, not many people have financial literacy. That is why when it comes to investment, people majorly choose the investment asset that offers a high return in a specific time framework with nominal risks.
There are ample traditional investment choices that a novice investor can make. Some of these are stocks, forex, and bonds. However, the higher returns of cryptocurrencies lure more investors to jump into this jungle.
Cryptocurrencies are the utmost advanced form of money; you can use this digital money to buy goods and services from the service provider who accepts these payments. You can invest in ekrona to start trading online in cryptocurrencies. However, the national bank of India, back in 2018, banned financial institutions from accepting cryptocurrency payments.
After the reversal of this ban, people are becoming increasingly aware of the actual concept of cryptocurrencies. Here is a cryptocurrency comparison with some of the traditional assets that a novice investor would choose.
Cryptocurrency Vs Stocks
Both cryptocurrency and stock investors have their good and bad times. The stock market has a mature existence and has been in the game for a long time. As a result, the stock market is much easier to predict than the cryptocurrency market.
Factors influencing the market value of stocks are different from the cryptocurrency market. The dynamics, volatility, rules, and regulations of the cryptocurrency market and stock are entirely diversified. We all are familiar with the cryptocurrency market being much more volatile than the stock market, as cryptocurrency underlies a decentralized infrastructure.
Cryptocurrency VS Bonds
Bonds refer to credit from an individual to a specific organization or government authority. So, in a nutshell, if you purchase some bonds, the organization that provides you with the bonds has loaned you some money from you.
Bonds are one of the safest investments. The company where you buy bonds will return the amount you invested for an explicit period. Subsequently, the organization or government authorities will repay your entire amount. In contrast to the cryptocurrency marketplace, buying bonds is a bit safe, but in case the organization or government goes penniless, it will be tough for you to retrieve your money.
Cryptocurrency vs Forex
Forex trading is like stock trading, but you exchange your fiat currencies with foreign currencies in forex trading. As a result, forex trading usually gains traction amongst the investors who are willing to invest their resources in foreign currencies. Moreover, in forex trading, you can gain profitable results when the country’s economic condition is good.
Cryptocurrencies Vs Gold
Bitcoin is popular as virtual gold; cryptocurrencies and gold have many similarities. Cryptocurrencies have a finite supply, and gold also has a finite supply. The limited supply of bitcoin and gold makes them a scarcer asset. Gold is a traditional investment asset with many drawbacks. First of all, gold is not mobile, and if you have to send gold from one country to another, you need to pay heavy custom duty.
On the other hand, bitcoin is entirely mobile as you can send bitcoin from one wallet to another without any complications. Gold offers a much lesser return as compared to cryptocurrencies. You might know that bitcoin has given its stakeholders more than 500% return over the past few years. After investing in gold, we store gold in a very secure place, free from any theft possibilities.
Fixed Deposits
Bonds and Fixed Deposits are the mere investment that government authorities support. FDs are an incredibly safe investment. While growing money, you can either choose safety or faster returns. FDs are secure and provide slow returns. FDs are the best investment if you are planning your retirement.
In contrast to cryptocurrency, the drawback of FDs includes slower returns and long-term investment plans; there is no benefit in suspending the FD without maturation. On the other hand, cryptocurrency offers faster returns, the market is fast-paced, and you can exit the market any time you want.
We can create these cryptocurrencies as well, the action of creating digital tokens is known as mining, and it underlies the blockchain and peer-to-peer technology. You can also invest your valuable resources in high-end computing rigs and bitcoin mining hardware, as mining is also a profitable venture. You can earn a 10% return on the amount you invest every month.