This question is often asked by novice investors who are about to enter the world of investment. Although these two investment instruments can provide different profits and risks, the differentiating factor is the underlying asset, investing in shares means owning part of the company according to the number of shares which can make a profit from capital gains and dividends, while crypto can also make a profit from capital gains. , crypto owners can also earn returns from staking activities or activate the Earning feature on the exchange. Even though the choice of crypto or stocks will depend on the level of risk profile, it also often creates doubts and politics for novice investors about choosing stocks or crypto. Below I will explain the pros and cons between stocks and crypto.
Pros: Crypto
Crypto is considered to be a hedge against inflation, the potential for profits is higher than shares, the price of crypto, especially Bitcoin, will get higher over time, crypto enthusiasts are increasingly widespread.
Cons: Crypto
The volatility of crypto prices is higher than stock prices, although the profit potential is high but the risks are also high, there are many hacks and frauds in the crypto world, no one regulates them, cryptocurrencies also have no intrinsic value. many countries ban crypto, many irresponsible developers only seek profit with scams such as rugpull etc., regulations on crypto are getting stricter so they lose anonymity.
Pro: invest in stocks
Stock returns come from capital gains and dividends, fundamentally stocks are easier to analyze than crypto, have intrinsic value, regulations in the stock world are more mature than the crypto world, such as preventing stock prices from dropping more than 25% in a day, so stocks are safer compared to crypto.
Cons: investing in stocks
The stock market does not move in accordance with intrinsic value, there is negative sentiment, the market often moves erratically, the potential profit is smaller compared to crypto, daily stock price movements are regulated by Upper and Lower Auto reject limits.
Pros: Crypto
Crypto is considered to be a hedge against inflation, the potential for profits is higher than shares, the price of crypto, especially Bitcoin, will get higher over time, crypto enthusiasts are increasingly widespread.
Cons: Crypto
The volatility of crypto prices is higher than stock prices, although the profit potential is high but the risks are also high, there are many hacks and frauds in the crypto world, no one regulates them, cryptocurrencies also have no intrinsic value. many countries ban crypto, many irresponsible developers only seek profit with scams such as rugpull etc., regulations on crypto are getting stricter so they lose anonymity.
Pro: invest in stocks
Stock returns come from capital gains and dividends, fundamentally stocks are easier to analyze than crypto, have intrinsic value, regulations in the stock world are more mature than the crypto world, such as preventing stock prices from dropping more than 25% in a day, so stocks are safer compared to crypto.
Cons: investing in stocks
The stock market does not move in accordance with intrinsic value, there is negative sentiment, the market often moves erratically, the potential profit is smaller compared to crypto, daily stock price movements are regulated by Upper and Lower Auto reject limits.
