Over the last few years, cryptocurrencies have emerged as a popular investment method for people looking to earn high interest on their funds. But since cryptos aren’t backed by any government or central authority and are highly volatile, many people have raised questions about their reliability. 

Investors – especially the traditional ones – still consider precious metals like gold a better investment option than cryptos. Are they right in their choice? Is gold still a better investment option than cryptos? Read this article till the end to find out the answer to these questions! 

Gold vs. Cryptos – Key differences between the two 

Features of gold:

Gold has remained a popular means to hold wealth for thousands of years. The reason for this is simple – gold is much more stable than many other investment options present today. Gold doesn’t experience massive volatility. Further, gold is highly regulated and is recognized as a valid medium of exchange and store of value by governments all across the world. 

The regulations on gold are so strict that people cannot cross the borders of many countries with gold unless they have written regulatory permission from them. Further, since the prices of gold remain stable for the most part, investors can’t make huge returns on their investments in a short time. 

Features of crypto:

Cryptos, on the other hand, are basically virtual currencies that aren’t regulated by any central authority. They are completely decentralised and are thus believed to be a bit unsafe due to all the anonymity associated with them. 

Further, cryptos are highly volatile in nature. Their process can swing in any direction without prior warning. While investing in cryptos can give you massive returns on your investment, you can also end up in huge losses because most cryptos lack stability. Popular cryptos like Bitcoin are also vulnerable to the media effect, where even the most insignificant rumour can send the prices barreling up or down. 

Gold vs. Cryptos – What is a better investment option? 

When it comes to choosing the right investment option between gold and decentralised cryptos, the right choice will always depend on your risk appetite and investment strategy. If you want to make some quick gains in a short period, gold is not for you as it is a long-term investment option. 

Similarly, if you expect huge returns on your investment and have a high-risk tolerance, you can try investing in cryptos after doing proper research. Since the value of gold remains stable for the most part, you won’t be able to make any massive gains (or become rich overnight.) 

On the other hand, if you are looking for a long-term investment option that is regulated by the government, and is less volatile, investing in gold can be the right choice. Gold will maintain your purchasing power for decades to come, while the same cannot be said for cryptos.

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