Is crypto a new alternative to the stock market?

Should you opt for stocks or alternative investments? (source: pixabay.com)
Should you opt for stocks or alternative investments? (source: pixabay.com)

The explosion of alternative investments to stocks

Stocks have been the backbone of most investment portfolios for a long time now. For non-accredited investors, they have long been one of the lowest entry-cost investments available.

The crypto explosion

Although crypto assets are considered “alternative” investments, things might not be that way for long. The days where crypto was limited to tech geeks buying Bitcoin are long over — these days, everyone from your work colleagues to your grandmother is considering a crypto investment.

Cryptocurrencies might be one of the best alternative investments to stocks
Cryptocurrencies might be one of the best alternative investments to stocks (source: finance-monthly.com)

Why cryptocurrencies may be an alternative to stocks

While crypto has the whole blockchain angle to consider, the coins themselves have taken on increasingly similar features to stocks.

Crypto may be a good stock alternative, but…

New traders flooding the stock market through fintechs like Robinhood have seen increased volatility in the traditional markets. However, there’s a huge variation in the returns and risks of stocks and crypto.

Cryptocurrencies can offer some mouthwatering returns.

The cryptocurrency DASH, for example, has seen a return on investment (ROI) of 25,457% since its launch in 2014. Binance coin (BNB) has had an ROI of 11,309.9% since its 2017 launch.

The downsides of crypto

While many crypto projects have made a lot of money out the gate they’ve often met obstacles. In the face of regulatory uncertainty from local governments and lack of immediate viability, many coins have suffered devastating crashes.

So, what is the best alternative investment to stocks?

Ultimately, choosing which assets to invest in is a personal decision. Don’t opt for crypto just because some random guy on the internet tells you to!

The stock market vs its alternatives: how do they compare?
The stock market vs its alternatives: how do they compare? (source: pixabay.com)

How to get into crypto and explore other stock alternatives at the same time

Think crypto investment could be the one for you? At MyConstant, we have some great tools to help you get started.

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