Why I Believe Traditional Investing is Better Than Cryptocurrency
As an investment expert, I have noticed the increasing fascination of people towards cryptocurrency as a means of investing their money. But is it really a good investment option? In my opinion, traditional investing certainly trumps cryptocurrency when it comes to the safety of investment, stability, and long-term returns.
The Risks of Cryptocurrency
Cryptocurrency is a highly volatile investment option. Even if you are familiar with the market and have done your research, there is always a high level of risk involved when you invest in cryptocurrency. With the investment being totally dependent on exchange rates, it makes the investment very difficult to predict. The value of your investment can plummet in just a few hours, making it one of the riskiest investment options.
The Stability of Traditional Investments
Traditional investments such as stocks and bonds have a level of stability that cryptocurrency cannot even come close to matching. These investments have been around for years and are backed by companies with long histories of financial success. They are also regulated by government policies, which is a significant factor, unlike cryptocurrency, which is still unregulated in many parts of the world.
The Long-Term Returns of Traditional Investments
By investing in traditional investments, you can be sure of steady and consistent returns over the long-term. Dividend-paying stocks, for example, have been known to outperform all other investment options, including cryptocurrency, in terms of long-term returns. In contrast, cryptocurrency is often used as a short-term investment, making it less reliable as a long-term investment option. The focus should always be on achieving long-term goals, and traditional investments are the safest way of achieving them.
Examples of Cryptocurrency Fails
We have seen instances where cryptocurrency investments have gone wrong, causing severe financial losses to investors. In 2018, the cryptocurrency market saw a significant crash, wiping off almost 80% of the total market value. The highly publicized hacks and scams in the recent past also prove why the investment in cryptocurrency is highly risky. On the other hand, traditional investments, as mentioned earlier, have a much more stable and secure history, preventing investors from losing their hard-earned money.
Conclusion
Investing your money is a decision that should be taken after a lot of careful consideration. While cryptocurrency may seem like an attractive investment option, it is highly volatile and unpredictable. In contrast, traditional investments offer a high degree of safety, stability, and are the best option for long-term investments. In conclusion, if you are looking for a reliable and secure means of investing your money, traditional investments should be your go-to option.
