Investing your excess money in something ‘right’ is the best way to build your wealth, but picking the ‘right’ investment can be tricky.
The stock markets have been around for decades, but cryptocurrency has made headlines lately.
Here we take a look at how the traditional stock marketing industry works against the new age crypto world.
WHAT IS CRYPTOCURRENCY?
Cryptocurrency is a form of decentralised digital currency, a digital asset that is used as a medium of exchange to conduct transactions online.
Bitcoin is the world’s first digital currency invented by Satoshi Nakamoto in 2009.
WHAT IS STOCK MARKET?
Stock market is a physical or virtual regulated market where people buy and sell company shares. Companies can list themselves in stock exchanges in order to raise capital from the public.
The Amsterdam Stock Exchange was established in 1602 by the Dutch East India Company, it was the world’s first official stock market.
The stock markets are supported and backed by governments and laws of the state. When things go south, government intervention would be the key to rescue.
There are no regulatory bodies when it comes to cryptocurrencies, they are decentralized and lie outside government regulations and banking systems. Hence, there is a sort of resistance for the same.
Investing in cryptocurrencies is extremely risky. They are highly volatile in nature. It’s a medium of investment for those people who have a very high tolerance for risk and want to double or even triple their investment at a very fast pace. It is necessary to keep in mind that every single penny can be lost just as quickly it was earned and multiplied.
Investing in the stock market is risky, however it is less volatile when compared to cryptocurrency. A little research about a company can mitigate risk of loss. Also in terms of options, there are hundreds.
If someone wants to invest in crypto you’ll need to use crypto exchanges and need to have a digital wallet to store your crypto coins or tokens. Online wallets are still not available across the globe, especially in developing and under developed countries.
Stocks can be purchased through accounts which can be opened through brokerage firms. The process to open such accounts is much simpler, trading can take place through several mediums — online or over call with personnel assistance.
The cryptocurrency market is expected to go from $1.6 billion this year to $ 2.2 billion by 2026.
This year, 2021 has definitely been a turning point, a revolutionary year for the cryptocurrency market. In the past year Bitcoin has grown over four times and Ethereum grew over 10 times.
Cryptocurrency has a very promising future.