Cryptocurrency Market vs. Stock Market: The Difference Is Time

The cryptocurrency market is an enigma to most. An exchange of digital currency, each powering blockchain technologies that have been heralded as the future for almost a decade.

Whether we believe in this blockchain foretelling is irrelevant. What is relevant is whether the cryptocurrency market is one to invest in now?

Our truth, as all truth is relative to perspective, is that the cryptocurrency market is more similar to the stock market than it is different. Therefore it boils down to an investors risk tolerance.

CHECK OUT: 5 low-risk investment opportunities in 2020.

Cryptocurrency Wild West

Sure, there are technical aspects that can make cryptocurrency investing confusing, fiddly, and even scary. Yet, when looking at it purely from an investment standpoint, the only difference is time. The stock market (and the companies within) have matured over time and therefore familiarity is common and laws are in place.

And this is the cryptocurrency market’s biggest issue today. It remains relatively new, explorative, and therefore has more pitfalls and uncertainty — for some at least.

Our best ‘for instance’ is that during the cryptocurrency market’s 2017 surge it was compared to the Wild West. For some, that statement was because it was the new gold rush, gaining 4000% in mere months. Whereas for others, they lost out, got trapped and stuck in wishy-washy rules and laws. Three-years later and people are still comparing it to the Wild West.

Investment Opportunity

In terms of investment, the values seen today in the crypto market are far more appealing than the super-inflated 2017 values. And if the blockchain technology future we’ve been promised does occur, today would be the time to do your due diligence on the cryptocurrency market.

Thus the reality of cryptocurrency market investing vs. stock market investing should be considered as such: They’re both risky, but cryptocurrency has greater risk, which in turn has more potential for bigger gains.

And the above is not us advocating for cryptocurrency investment. We’re cautious investors, so long-term stock portfolios and government bonds are the better investment in our opinion.

At the end of the day, no matter your investment choice, whether putting $1,000 or $100,000 into stocks or cryptocurrency, always research and do your due diligence. Know that the track record of a company or cryptocurrency is paramount.

CHECK OUT: Short-term trading is it right for you? 5 simple questions to ask yourself before you begin.

3 Cryptocurrencies Worth Investigating

We’ve not included Bitcoin as it is established, well-known, and is somehow in the debate as to whether it is an alternative to Gold.

• Ethereum (ETH): Gaining by about 3000% in 2017, ETH became the #2 crypto behind Bitcoin and is currently valued at around $350 per coin. Its popularity is driven by the fact the Ethereum platform lets developers create their own cryptocurrency, which in turn props ETH’s value up.
• Ripple (XRP): In terms of a blockchain future, some may consider it already here. The XRP cryptocurrency is part of a payment system used by JP Morgan, American Express, etc. With Ripple’s blockchain technology, international payments are more secure and even faster. And at $0.20 per coin right now, this crypto might be worth researching.
• Litecoin (LTC): Litecoin is an improved Bitcoin technology, with 4x faster transactions. As its value seems linked to the peaks and troughs of Bitcoin, its $44.50 per coin vs. Bitcoins $10,428 per coin value makes LTC an interesting research project for any budding investor.

There’s thousands of cryptocurrencies available. Some, like Ripple look to have a good future, where as others could be short-lived. So remember, always do your due diligence.