Cryptocurrencies vs. Precious Metals: A Guide for Newbie Investors
The world is always obsessed with the newest, latest, hottest ideas and trends, but when it comes to investments for a better tomorrow, well-researched, solid strategies and targeted goalkeeping are important to minimize the risks involved.
The escalating trend of investing in cryptocurrencies upended the longstanding traditional asset investments, including precious metals.
Since then, comparing both has been one of the most widely debated topics of the decade!
Let’s read a primer overview of how to compare both investment vehicles.
Origin
Cryptocurrency, also known as Bitcoin, was first introduced in 2009. Satoshi Nakamoto, the pseudonymous creator of this block-chain based currency or digital gold, introduced a protocol which stipulates that the collective computing of ‘miners’ periodically halve rewards so that the final Bitcoin (limited supply of 21 million tokens in total) is not issued until about the year 2142.
Precious metals have been around since the creation of the universe. The store of the inherent value of these shiny metals, such as gold, silver, palladium, and platinum, is partly due to the limited supply, but since they’re malleable metals that are still difficult to counterfeit, investors consider them a safe haven.
Stability
Cryptocurrency has emerged to be extremely volatile as an investment vehicle.
Although it can provide a massive return on investments in a short period of time, the price is extremely susceptible to drastic fluctuations, often leading to sudden and heavy marketing crashes.
Precious metals are relatively established with a stable price point and are known to hedge against inflation and provide insurance, especially during economic and global crises.
Security
Although cryptocurrency is completely digital, it still needs a platform for storage.
Whether it’s a web-based storage facility or a physical hard drive, they can be easily hacked or stolen, which may result in your investment being stolen.
On the other hand, a mobile wallet app increases the feasibility of using them as a mode of payment at various retailers.
With precious metals, whether you buy silver or gold bullions or coins, they require secure private vault storage rentals.
Another safe way to store them is to look for top gold IRA companies with reliable custodians to manage your assets in precious metals IRAs.
These are often insured, making them a popular and safe way of investing for longer time periods as well. If you’re still unsure about the most effective way to invest, contact Orion Metal Exchange.
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