Which is better to options for investment Cryptocurrency,Stocks,Bonds, Gold?

Cryptocurrency Investment: There are many traditional options like stocks, bonds, gold, but now cryptocurrency is attracting investors in India too. But let us take a look at how different cryptocurrencies are from the traditional options that already exist.

Which is better to options for investment Cryptocurrency,Stocks,Bonds, Gold?

When it comes to investing in India, investors want to choose such options, where they can get high returns with less risk over a given period. There are many traditional options like stocks, bonds, gold, but now cryptocurrencies are attracting investors in India too. Seeing the increasing importance of cryptocurrencies in the future, investments are increasing here for its store value. In 2018, the Reserve Bank of India (RBI) banned all banks from doing cryptocurrency transactions due to fear of digital currency fraud. However, in the month of March 2020, the Supreme Court canceled this ban. Since this stand of the Supreme Court, a huge market for cryptocurrencies has been created in India. But let us take a look at how different cryptocurrencies are from the traditional options that already exist.

Cryptocurrencies vs stocks

Let’s start with the difference between cryptocurrency and stock market. There are good and bad days in both the markets. Although the stock market has a long history, it helps investors to decide the future direction, they take the help of these data for trends and predictions, but the cryptocurrency market is still quite new. There is no such data here. There are many types of risks in the stock market, there are things like business, financial, volatility in the market, government control and regulation, etc., which affect this market. But the ecosystem of cryptocurrencies is decentralized, that is, most of the currency is not controlled by any government or any group or organization.

Cryptocurrencies vs bonds


Bonds are also a medium of investment. In a way, it is like a loan taken from an investor by a company or government. That is, when an investor buys a bond from a company or government, then that company or government comes into its debt. As long as that company or government does not repay the loan of that investor, he keeps getting interest on it. The risky thing with bonds is that if the company goes bankrupt, then one will stop getting interest, and secondly, its principal will also sink.

Cryptocurrency vs forex

In forex or foreign exchange, investors invest in foreign currencies. Cryptocurrency is a currency accepted as a form of payment in many places around the world and investors in forex also deal with the global market. But the big factor is the economic condition of different countries. Investors are likely to get good returns from any foreign currency only when the economy of that country is performing well, on this basis it can be seen how much profit they are getting. In such a situation, this medium is a bit risky compared to cryptocurrencies.

Cryptocurrencies vs gold and silver

Apart from the choice of our country, buying gold and silver has also been a tradition. In today’s time people invest in these precious metals especially for buying jewelery etc. In such a situation, market sentiment ie market sentiment plays the biggest role in deciding their price. If we talk about risk, then the negative point in them is portability, import tax and ensuring their safety. However, this is not the case with cryptocurrencies. This is a digital currency, neither do you have to carry it from anywhere, nor do you have to pay any import tax on it. Its security is also digitized, so for these reasons crypto is a much easier investment medium than metals.

Cryptocurrency vs Fixed Deposit


Fixed deposits are perfect when you have to make a long term investment. In this, you have to wait till maturity for the return. If you do not want to wait long for returns or are giving up on FD option then you can invest in cryptocurrencies. Here the market fluctuates rapidly and you can take quick decisions. Here you can withdraw your money when the market falls. But one thing that should be known is that one does not have to do anything separately to mine or generate FD. Just got FD made and forgot till maturity. But mining is done to bring cryptocurrencies into circulation. Investors have to give their time on these as there is a lot of uncertainty in the market.

People can feel comfortable in traditional investment tools because they are used to it. On the other hand, the cryptocurrency market is new and has its own distinct advantages and disadvantages, so you should choose yours wisely.

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