If you’re an investor, it is impossible to miss the hype around cryptocurrencies. With the current bank crisis (Sillicon Valley Bank, Credit Suisse, Signature) and stocks falling in value, the crypto market has reacted in the opposite direction. The reason why different digital coins such as Bitcoin, Ethereum, Litecoin, Chainlink and others are gaining so much traction is because they offer immense potential for growth, and hope.
But how do they compare to traditional investments like stocks? Let’s take a look at what makes crypto so attractive and why it may be a winning bet over the stock market.
Volatility of Returns
Cryptocurrencies are known for their volatility in terms of returns. As an investor, this means there is a higher potential for making profits due to changes in value over time. On the other hand, stocks usually remain fairly stable and don’t experience significant changes in price within short periods of time. This makes them less attractive for investors who want to make quick profits from their investments.
Ease of Trading
Another major benefit that cryptos offer compared to stocks is ease of trading and accessibility. You can open up an account with any exchange or broker online and start investing right away without having to wait days or weeks before your account gets approved. This makes it easier for investors who want fast access to their funds or who want to capitalize on opportunities quickly when they arise.
Unlike traditional stocks which come with hefty fees associated with trading and commissions, crypto trading has much lower fees due to its decentralized nature. This makes it much more attractive for investors who don’t have huge amounts of money to spend on trading fees every time they make a move in the markets. It also opens up investing opportunities for everyone that may not have been available previously due to financial limitations caused by high costs involved with stock trading.
Instant Crypto Loans
Compared to the long-winded and time consuming forms you have to fill in with banks, plus soul draining credit checks in crypto you can get a loan against your collateral instantly. This is why so many people are taking up this option right now.
It cuts through the bureaucracy and allows investors to get cash, without losing their crypto. A very attractive combination indeed.
A Better Platform For Small Investors
Cryptocurrencies are becoming increasingly popular among investors due to their potential for growth, low fees associated with trading, and ease of access when compared to stocks. They are also highly volatile which means there is an opportunity for making bigger profits than what would be possible from traditional investments like stocks.
And success can be had over shorter periods of time thanks to the ability of crypto to move quickly in response to changing economic conditions or news events that could affect prices significantly overnight. For these reasons, many investors view crypto as a winning bet over the stock market when it comes to generating returns on their investments quickly and easily.
- Lucy Walker is a journalist that covers finance, health and beauty since 2014. She has been writing for various online publications.