I often hear on this sub that stocks are boring compared to stocks. Having investments in both, I could not disagree more. To me, the only thing that makes cryptos "less boring" is their extreme volatility and their potential to 100x. But beyond that, there's not much more to it. The crypto market seems pretty disconnected from real world events (i.e. changes in the global economy or markets), and once you learn the basics of how a certain coin works, what more is there to read or learn?
With stocks, there is endless amounts of details to learn about endless numbers of companies. There are many more factors to consider that could make the stock price go up or down, whether in the next 3 months or in the next 5 years. You have to learn about the companies and the markets themselves in order to make a good investment, and also consider global market factors and how these might affect the companies you have invested in. For cryptos, the depth of the long-term analysis seems to be that "it's a limited supply and therefore its value will go up", or, "if Bitcoin goes up, coin X will go up also", or, "cryptos are worthless and it will surely all crash one day". There's pretty much no nuance, compared to stocks.
I have a decent chunk of money invested in cryptocurrencies, but I find it pretty boring in general once you make your investments in the top few coins and a few alt-coins. I'm just going to sit and hold my crypto for 5-10 years anyways. I don't care about short term gains. I want to beat the stock market over the next 5-10 years with my crypto investments, and even "conservative" crypto coins like Bitcoin and Ethereal are still HIGHLY volatile and risky compared to the stock market.
Remember that crypto - any crypto - is already probably the riskiest asset you own. Don't gamble everything on Bitcoin, much less on the latest dog coin. Don't forget to diversify your portfolio, people!
More importantly, I recommend investing in stocks because it's frankly much more interesting and you will learn more about economics, business, and market dynamics. And if you want the thrill of shitcoins, there are also penny stocks, but at least you can enjoy the thrill of investing in a real company and doing your research before choosing it.
Anyways, just my two cents. This is not meant to be crypto vs. stocks. The point is more to suggest to those of you who only dabble in crypto to also try stocks. I think you will really enjoy it. :)
TLDR (since most of you are not reading my post): Stocks are more interesting to me because there is more to learn and understand before making investments. Cryptocurrencies provide a much more intense jolt of volatility, but in the long run I find it boring from a perspective of learning.
No comments:
Post a Comment