Cryptocurrency is the big new investment opportunity that everybody seems to be evaluating. There are new coins being released all the time, and the barrier to entry is very low, so a lot of first-time investors are putting their money into crypto. It looks like it could be the future of investing and maybe even the future of the economy, but is it all it’s cracked up to be?

 

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Even though there are some big benefits to investing in cryptocurrency, traditional investments are still just as relevant as they’ve ever been. Gold, in particular, is still an option for all kinds of investors Here’s why gold may be a better investment option than cryptocurrency.

 

Consult with an investment advisor regarding the risks and rewards of investing.

The Market For Trading Gold

If you want to sell some gold, you can always find somebody to buy it. It has tangible, physical value outside of its position as an investment.

 

There are cash for gold companies that will always buy gold jewelry and watches, etc., and if you hold gold as an investment, it’s easy to trade. Even in times of economic hardship when other investments are tanking, people may still buying gold.

 

Some investors move their money away from stocks and bonds and into commodities like gold. The same cannot be said for cryptocurrency, because it’s a new investment and this currency does not have a long track record to analyze. If buyers for a certain coin dry up and nobody is interested in it anymore, you may find it difficult to sell your coins.

 

Security Issues

Your cryptocurrency is stored in a digital wallet or stored locally on your computer. Although there are safety measures in place, there is always the chance that cyber-criminals will be able to steal your investment.

 

When you own gold, it’s much harder for it to be stolen, if a third party holds the investment for you. It can still happen, of course, but that requires somebody to physically break into a security facility, and that’s very unlikely.

Gold May be More Eco-Friendly

A lot of people are interested in ethical investments that contribute to the health of the planet and the success of local communities. If that is a priority for you, cryptocurrency is not the way to go.

 

According to some estimates, mining Bitcoin uses more electricity than the entire country of Argentina every year. If you’re concerned about your impact on the planet, you should think twice about investing in cryptocurrencies that require a great deal of power to mine. Gold, on the other hand, doesn’t have anywhere near as much impact.

Track Record of Value

Cryptocurrencies are volatile. The value jumps up and down a lot, which means that even though you could make big gains, you could also make some serious losses.

 

Gold, on the other hand, trades with less volatility. There are some fluctuations, of course, but they are much smaller and the overall value of gold tends to increase over the decades.

 

Cryptocurrencies do have their benefits and you might decide that they are the right investment choice for you. But before making any moves, consider whether gold might be better.

 

Consult with a financial advisor regarding investing risks and returns.

 

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Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/