Bitcoin and other cryptocurrencies vs stocks — which is a better investment?

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In today’s age, investment is no longer a luxury but a necessity. With constantly decreasing household income but skyrocketing inflation, you can’t afford to lose the time value of your money.

In layman terms, time value of money is the compared value of €1 today and its expected value in the next 5 years, where 5 years is just an ideal reference tenure. For an instance, the value of your €100 in 2015 is €106.43 in 2020 which shows that the goods for which you spent €100 in 2015 are now worth €106.43.

Moreover if you are looking for an passive instrument that makes your money work as hard as you work and achieve financial freedom, then nothing is better than putting your money to work through investing.

Where should you Invest?

With the introduction of new technological advancements, 21st century offers numerous investment instruments as well as ease of buying and selling of those assets. Even though options absolutely provide a great diversification opportunity, choosing the right one can still be a daunting task and financially expensive if you make a wrong one. For the same reason, many experts have analysed the most popular investment instruments of today that has made fortune for many. These are Bitcoin and cryptocurrencies alike as well as traditional company stocks. But the question arises, which one should I go for? Traditional stocks have been offered by banking institutions from the past many decades. However, Bitcoin came into existence just a decade ago.

Bitcoin’s invention

With the embarkment of technological developments, the past decade gave birth to many innovations. One of greatest ones were invention of new currency that named the 21st century as the decentralisation century. The very first cryptocurrency came into existence in 2009 and was named Bitcoin. With many conspiracies floating around the inventor of the first digitally decentralised currency, the creator’s identity is still a mystery. Uniqueness of Bitcoin is not only in its anonymity but also the introduction of Blockchain, a futurist ledger that ensures transparency and security.

Inception of Bitcoin (BTC) gained momentum post the unfortunate housing market crash of 2008 and turned out to be one of its kind peer-to-peer technology to facilitate immediate but secure payments which were being processed by individuals and companies on the blockchain known as Miners. These miners are rewarded in terms of the release of new bitcoin and transaction fees paid in mining of bitcoin. New bitcoins are released to the miners at a specific but periodic declining intervals rate, such that the total supply of bitcoins reaches 21 million. Hence making it rare, limited and efficient for goods exchange. The momentum and popularity of bitcoin accelerated so much that the price of 1 BTC skyrocketed from $5 to $19000 i.e. an appreciation of mind boggling 100000% within 8 years.

Which one is the best for investment?

A million dollar question that many ask is “which one should I choose to invest in?”. However, we say, why not both? From Investment banks to Hedge Funds, every single expert promotes diversification because that ensures High Returns with less Risk exposure. Owning a diversified portfolio is one of the practices for you as a retail investor as well, as that will ensure a complete peace of mind. When you wisely invest in different assets with varied Risk exposure and Return potential, all you would need to do is sit back and see your investments grow. Therefore we suggest instead of putting all your eggs in one basket, it’s always a wise idea to distribute your capital among different investment instruments For instance, if you are 25 years old and have €1000 to invest, you can invest 20% i.e. 200 in Bitcoin, 40% in Stocks and rest 40% in ETFs as it helps in reducing Risk exposure. This is an ideal situation. However, you can choose your own distribution strategy based on your Risk appetite and amount of disposable income.

Major Barrier & Its Solution

One of the biggest hold up comes in managing all these investments as every single of these require a different platform to buy and manage your portfolio. Wouldn’t it be great to have a single platform where you can view your complete portfolio in a single click?

We at Fox are here to enable you to do just that. Our next generation banking platform is well equipped in bringing all investment instruments under one roof. From Bitcoin or any of the other cryptocurrencies to buying ETFs, you can access all your investments in just one click.

Fox upcoming benefits include :

  • Invest in stocks, ETFs, cryptocurrencies and others
  • Simplified investing
  • Multiple options – from automated risk classes to ESG-focused investments
  • Innovative investment using “play money” where you can easily test your strategies before getting into the real game.

Get Early Access Today!

Fox reinvents banking for the 21st century. Get rewards for saving, budget smartly and easily, and be encouraged with your progress.