Whenever it comes to investment, we want to choose an option that can give high returns with low risk over a fixed time period. We have many traditional options like FD, Stocks, Bonds, but nowadays a new investment option is rapidly occupying the minds of the people which is Crypto Currency. Young investors are getting attracted towards this very fast.
Seeing the growing importance of crypto currency in the future, investments are increasing in India for its star value. In 2018, the Reserve Bank had banned all banks from doing cryptocurrency transactions due to the fear of digital currency fraud. But in March 2012, the Supreme Court lifted this ban.
After this stand of the Supreme Court, a big market for crypto currency is being prepared in India. In today’s article, we take a look at how different crypto currency is from the already existing traditional options and which base investment option is right for you.
First of all let’s talk about Crypto Currency Vs Stock Market. There are volatility in both the crypto currency and the stock market. Although the stock market has been in India for a long time, so people are more confident in the stock market and this helps investors to decide the future course. They have a past record with the help of which they can create the right investment strategy, but the crypto currency market is still quite new.
There isn’t much data here yet. There are many types of risks in the stock market. There are things like volatility in the market, government control and regulation, etc., which affect this market, but the ecosystem of crypto currency is de centralized, that is, most of the currency is not controlled by any government or any group and organization. Questions also arise whether there is a direct connection between crypto and the stock market.
Experts say that there is no direct correlation, rather it is seen that when the crypto market falls, the stock rises. It also needs to be known that crypto markets are more volatile than stocks. When crypto rises, its price rises continuously and when it falls, its price falls continuously. Crypto is not directly related to stocks. Therefore, whenever you build your portfolio, make sure that you are investing in crypto, then be prepared for huge fluctuations.
This question has arisen in the mind of every person who is investing in crypto currency like bitcoin, helium and doge coin. People want to include crypto currency in their investment portfolio, but the truth is that it is different from the stock market.
And the way of buying and selling of its market is also different from each other. The asset class of both is also different and if we look at their behavior in the market, then there is a figure of 36 between the two. Well, according to experts, both should not even come together. This will benefit the investors.
Now let’s talk about crypto currency vs gold silver. Buying gold and silver in our country has been a tradition apart from being a choice. In today’s time people invest in these precious metals to buy specialty, jewelery etc. In such a situation, market sentiment i.e. market consumption plays the biggest role in deciding their price.
If we talk about risk, then the negative point in them is portability, import tax and insuring their safety. There is nothing like this with crypto currency. This is a digital currency, does not have to be brought from somewhere. Its security is also digitized. In such a situation, for these reasons, crypto is an easier investment medium than metals.
Friends, now let’s talk about crypto currency vs fixed deposit. Fixed Deposit NEFT is ideal when you do not have to take any kind of risk and have to make long term investments. In that you have to wait till maturity for the return. Also, the returns in FDs are very less, but if you want to take risk and get high returns, then you can invest in crypto currency. 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 crypto currency into circulation. Investors have to give their time on these as there is lot of uncertainty in the market.
Now let’s talk about crypto currency vs forex or foreign exchange, in which investors invest in foreign countries. Cryptocurrency is the currency accepted as 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 investors from different countries can get any foreign currency. There is a possibility of getting good returns only when the economy of that country is performing well.
On this basis it can be seen how much profit they are making. In such a situation, this medium is a bit risky compared to cryptocurrency. People can feel comfortable in traditional investment tools as it is their habit. On the other hand, the crypto currency market is new and has its own distinct advantages and disadvantages. So you should choose wisely.