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Where does your money multiply? Crypto or The Real Estate Market

Gone are the days when people were happy with one source of income and were able to meet their requirements and desires. People today want to have a more secure future. Especially immediately after the pandemic, the financial security has taken a central place in people’s concerns. Understanding and identifying such trends, the market is ebullient with multiple investment prospects for the potential investors. If we closely observe, there are primarily two major attractions for investors in the present times- Crypto Currency and the Real Estate Market. It would be insightful to observe how these trends have taken over people in the last decade and where does the major proportion of people’s inclination lie.

Cryptocurrencies are gaining more and more popularity among investors from literally all walks of life. It is very easy to understand why since we are talking about a speculative opportunity that can easily lead to huge gains. It is enough to highlight the fact that 1 BTC was $1,000 in March 2017. Then, in December 2017 it actually reached a value close to $20,000. While cryptocurrencies offer a huge earning potential, we cannot neglect the fact that the risk associated with investing in digital coins is very high. Due to this, many investors still look at tried and tested opportunities, like real estate properties. They emerge as a safer option with less to be worried about. Even if the global market ranks down, a long-term investor would not have to worry and the same has been observed during the times of Corona as well.

For a long time now, real estate has been seen as being the gold standard with investing. Home value tends to appreciate as time passes and the real estate owner can actually make a passive income when he/she rents the property. Overall, we have to acknowledge the fact that property purchasing is seen as a safer investment. However, there are also risks associated with it. This is why choosing between cryptocurrency and real estate is not as easy as you might first think. It would therefore be insightful to look at the similarities between the two.

Cryptocurrency Investments

One of the most significant aspects that we have to highlight is that cryptocurrency technology is very intricate but the investment in the same is not as complicated as it might appear. All that you have to do is to sign up for one of the large and safe cryptocurrency exchanges. Then, you buy cryptocurrency like Bitcoin or Ethereum. Nevertheless, a big problem with making crypto investments is that you will be faced with countless opportunities. Moreover, risks and spams are quite prevalent here so people generally eye investing in crypto with a speculative glance. You need to do some intensive research if you really wish to experiment with it,

Real Estate Investments

The dynamism and revolutionary changes in the case of real estate investments are so much smaller than what we see with cryptocurrencies. There are definitely some risks that exist but fluctuations in value are simply fewer. While it is completely normal for BTC to drop in value, let’s say 10%, in just one night, this does not happen with real estate properties. But it is also not free from troubles at times. The big problem with real estate investments is that the upfront investment necessary is a lot higher than with crypto investments. What is particularly interesting is that real estate is transparently documented and one of the tried and tested strategies used by millionaires for years. In fact, during the past 200 years, most millionaires got their wealth through smart real estate investments

What then is better?

One of the very first things you learn about making an investment is that you have to diversify your portfolio. This practically means that you need to make several investments with the budget that you have. You thus protect your assets in the long run. Generally, for beginners, it is recommended to include various assets in their investment portfolio, like index funds, stocks, bonds, cryptocurrencies, and real estate properties. If you have the right kind of budget, you can partly invest in both. But, if you want to invest in a more mindful and stable manner, the Real Estate Market is where you go.