With the digitalization of currency technology, more assets are coming being created for investors to invest their money in. This modernized technology has brought up new and improved digital assets, the most popular of which are known as cryptocurrencies. Unlike precious metals, they do not have a long history. Nevertheless, crypto may be a game-changer for investors. Let’s evaluate the pros and cons of investing in cyptocurrencies vs precious metals.
Cryptocurrencies: Since their inception, investors in cryptocurrencies have seen huge returns. There are a number of different cryptos available for investing, the most popular of which is Bitcoin. One very special feature of all major cryptocurrencies is that they are not owned by the government. This means that they cannot be issued at will by when more are needed. There are a finite number in circulation, making them a more attractive investment. Another perk of investing in cryptos is that these currencies can be bought with ease, online, and almost instantly.
However, as secure as this investment is, cryptocurrencies are subjected to immense volatility and due to their unpredictable nature, these coins may be a fairly risky investment. Furthermore, it must be kept in mind before investing in cryptos that due to its digital nature, they are prone to fraud and theft.
But what is the alternative to these cryptos if you are looking for a safer market to invest in? The answer is fairly simple: precious metals. Precious metals like gold, silver and platinum are still a safer mode of investment. In the argument of gold vs cryprocurrencies, gold always wins due to its ability to act as a hedge against recession in the economy. Metals like gold are not subjected to devaluation even during periods of recession. Unlike daily fluctuations that could be seen in the case of cryptocurrencies, precious metals are the safest investment to date. Thus, if you are someone who prefers a secure investment you should certainly consider precious metals.
But is it always the better option? Answering yes to this question may be unfair, as precious metals have their own cons when it comes to investment. Even though gold and other metals are lower risk than cryptocurrencies, they cost more to buy and sell due to their physical nature. Gold is a better choice as a long term holding.
To sum up, do your homework before rushing to invest in either gold or precious metals. The decision depends on your savings, investing preference, and current account portfolio. It is essential to consider the factors mentioned above before you invest your money.