Does somebody here do trading in stock market and also trading in bitcoin? Which is more profitable and safe?
Thanks ahead!
Both have their advantages and disadvantages in terms of acquiring profit and time. Here are some of my opinions regarding the two options:
For Bitcoin:
ADVANTAGES:
- Bitcoin has the potential of yielding large amounts of profits in a short amount of time;
- Acquiring bitcoin is relatively easier than investing into stocks due to the presence of stock brokers;
- Due to bitcoin's high volatility, this type of mechanism makes it a 'high-risk, high-reward' system;
- A decentralised form of currency cannot be regulated, thus bitcoin is tax-free (relatively and debatable);
- There are only a limited amount of bitcoins in the market, making its price dependable on the law of demand and supply; and
- Bitcoin has been used as an alternative currency into some aspects as some services can be paid via this currency.
- Lack of collateral and security hinders most investors from risking their resources;
- Due to its high volatility, it is considered as a double-edged sword among the investors;
- Its limited supply in the market may be potentially abused by whales by manipulating the price; and
- Some countries have implemented laws which are prejudicial to bitcoin's existence. This may pose a problem in the future if further laws will be created prohibiting the use of such currency.
For stocks:
ADVANTAGES:
- Investment gains may increase your investments over-time depending on the company where you invested it on;
- It is controlled and regulated by the Securities and Exchange Commission, thus abuses and conspiracies among corporations are rare and enforceable by law;
- Other corporations have collateral and security among your investments which makes it relatively safer among other investment mechanisms;
- Some stocks offer dividends to its shareholders; and
- There exists a broad spectrum of choices on where you can acquire shares of stocks into different corporations.
DISADVANTAGES
- Investing into a stock market is more of a long-term rather than a short-term goal since the realization of profits may take a while;
- There is always the potential of the corporation losing its value in the long-run. That is why some people invest into blue-chip companies for safer security; and
- Before you invest into a company, you are required to do research and background checks in order to maximise your profits!