Investing is a great way to grow your wealth. With the right assets, it’s easy to build up a multi-million dollar net worth. However, it’s also important that you choose the right market for growing your wealth. In today’s article, we’ll look at stocks vs Crypto and compare them both.
This is a detailed breakdown of each option and what to expect from them.
Let’s dive in.
Investing In Stocks: The Slow But Safe Route
Wall Street’s track record is long and predictable. Over time, the market always goes up. There are bumps, like recessions and corrections, but safe investments will survive.
Index funds are a great example of this. Assets like SPY or VOO track the entire S&P 500.
This means you’re investing with all the top companies and protecting your money during turbulent times. In fact, this is the exact investment Warren Buffett recommends.
Additionally, stocks and index funds are reasonably priced.
I buy VOO through the Robinhood Investment App (there are no trading fees) and each share currently costs around $250. For a couple hundred bucks, you own a slice of every major American cooperation.
That’s a great deal.
Investing In Crypto: Small Risks, Big Rewards
Many people consider Crypto risky. Mainly because of it’s volatile nature and unproven track record. While the stock market has decades worth of history, assets like BitCoin are less than 10 years old.
But, don’t let this pessimism fool you.
Crypto has massive potential, and there’s still plenty of room for explosive growth.
Many smaller alt coins (like Phore) are great speculative plays. And even stalwarts like BitCoin are still profitable. Especially if you’re dollar cost averaging. Or buying the dips.
Additionally, Crypto’s volatility can work in your favor. During the next bull market, many low-cost assets (and BitCoin itself) will surge in value.
Buying some inexpensive coins, only to have them skyrocket in price, is much more lucrative than the stock market’s traditional 7% return on investment.
Likewise, with Crypto, you don’t need a huge investment to see considerable gains.
Even buying $100 – $200 worth of assets sets you up to capitalize on the next bull run.
It’s a fairly low-risk strategy with potentially enormous results.
Stocks Vs Crypto: Final Thoughts
(Here’s My Portfolio Balance)
When it comes to deciding between stocks and Crypto, there’s a very simple choice: Invest in both.
Stocks give you consistent long-term results. Especially if you’re buying index funds like VOO which track the entire market. Crypto, on the other hand, is more volatile and capable of returning bigger gains. This means that a little money goes a long way. And picking the right coins, or timing a dip, will yield colossal returns.
Personally, I don’t treat it like a war with stocks vs Crypto, but try pairing the two up to work together instead.
By doing so, you get the full advantages of each asset.
And while I’m no financial adviser, my personal portfolio looks a bit like this: 85% traditional assets (like stocks) / 15% Crypto. This gives you plenty of protection from volatility, while also allowing you to capitalize off any major Crypto opportunities.
I think it’s a nice balance.
P.S. If you’re looking to invest in stocks or Crypto, check out the Robinhood App. If you’re only interested in BitCoin, try CoinBase. You’ll get an extra $10 with your initial deposit.