Which investment is more risky, stock trading or cryptocurrency investing?
Investing in crypto currency is generally a huge risk, as today there is a crypto currency and tomorrow may not be, but money is already invested. There is another less risky way to invest money. This is the forecasting, betting and analytics of football matches https://777score.ph, win in the case of a correctly predicted game.
I think that anything can be risky and that is why I prefer FX trading. You can loose money in any of this things, so it’s up to you to choose. There is a lot information about this https://fxmcapital.com/
I’ll try to be as unbiased as possible; I warn in advance I’m not an advocate to crypto.
The short answer is investing in the stock market is less risky than crypto and I’ll explain why.
Although crypto fills the requirements to be called currency and it has brought a great technology, blockchain, which can be used to many other things other than crypto, the problem is that it isn’t regulated like the USD, for example, and almost “anyone” can create new crypto currencies, we’ve seen that in the last few years.
Crypto get its value from its scarcity, which is something that also gives value to any other currency, but it is not tied to any economy and can lose its value from one day to another. Taking the example i gave above the USD is impossible to lose its value from one day to another, unless the US got nuked or its economy disappeared entirely, also there is a central bank that decides to inject or take money from the global economy, that’s called a monetary policy it’s one of many ways to control the value of money and inflation.
As we saw in this few years, every time a hacker steals Bitcoins the price plunges greatly, we can only see an impact like that, on a country currency, if there is an event that impacts that economy very seriously.
On the regulation side, the stock market is heavily regulated, for a company to sell their shares it must exist in reality, they have to publically announce their yearly results, statements, profits, etc.
At the moment 1 Bitcoin values around $6000, that’s very attractive having a currency with such value, but this currency has a limit and what will happens when it hits its limit and there’s no more to be mined? It will stagnate and will maintain the same number of bitcoins forever, this will turn bitcoin into a closed economy and it will start to lose value or disappear since there will be no more interest in having that coin.
I hope I wasn’t to boring on my answer and that I could help.
On a side note: I think the crypto should not be overlook but there’s the need to understand how it works and treat it with caution.
