Assets have been of interest to most individuals since most assets hold a certain store of value. Before, most assets only came in physical forms, like gold, silver and other different kinds of metal, arts and artefacts, real estate and more. But way back in 2009, a special kind of asset was developed, the decentralised digital currency was launched. Both assets have their own unique characteristics; nevertheless, now both are proven to generate enormous profit for their investors. Profits can be achieved through holding or trading; it usually depends on one’s goal and the term of investment. Physical assets usually have a store of value which means it would take time for one to gain profit; with cryptocurrency, the value changes from time to time, meaning short term investment is also highly profitable. Nowadays, cryptocurrency grading is highly anticipated by individuals; visiting a crypto trading platform like Immediate Edge can help you get connected to a broker.
What is cryptocurrency?
As we progress to the digital age, a lot of advances in finance and technology have been made; one of them is cryptocurrency. The very first cryptocurrency, Bitcoin, was launched by the pseudonymous Satoshi Nakamoto, with the goal of removing the middlemen in every transaction. In its first few years, only the computer geeks and some people knew about it; only a few people saw the possibilities. Cryptocurrency is made to be a decentralised digital currency, meaning; no central authority controls it. Since it is digital, each transaction is also made to be run on the blockchain network.
As time passes by, a few more people have invested in Bitcoin, making its value rise until it can finally be used to buy a pizza. That time it sparked a whole new journey for crypto. Way back, Bitcoin used to have a value of a dollar per single Bitcoin now; it has a value of around $41,000 and a market capacity of almost $665 billion. There are websites, bitcoinera.io, which generates a report from time to time regarding the crypto market as a whole.
What is gold?
Gold has for a long time been known for investment, as it historically performs well on market collections. Gold has been maintaining its value, yet the value rises whenever investors choose to move from declining stocks or any market investments to gold. Investing in gold is a proven method of saving one’s investment from market recessions.
On trading gold, the built system on trading, weighing and tracking is also impeccable, as it is impossible for one to fake. Golds can also be purchased from registered dealers, as it would come with its classification and karats.
Crypto and gold key characteristics as an investment:
- Both have regulations, trading being a big part of every nation’s economy, national governments make sure to track and make rules.
- Both can be utilised as an asset or a mode of payment; although there are a limited number of merchants who have these options, the number is evidently growing.
- On liquidity, both have a limited amount of supply. This still depends on the type of cryptocurrency or gold.
- On volatility, gold is evidently a lot more stable than cryptocurrency, yet when it comes to value, cryptocurrency tends to have high value in a matter of seconds.
Where should I invest?
Investing means one would be shelling out money; with that, great decisions would be essential in considering investments. Nowadays, there are a lot of options for one to invest in, arts and artefacts, stock market, golds and metals, cryptocurrency and more. With that, a lot of research is important for one to know what type of asset would be perfect and would fit the needs and goals of the investor. As every expert in any type of investment says, it would be best to diversify your investment. Putting the right amount in each investment would save an investor from losses and have a great investment portfolio.