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Cryptocurrency vs. Property Investment – Which Is a Better Investment?

Cryptocurrency vs. Property Investment
Written by bullish buys

Any investment gain or loss depends on the market volatility. Post pandemic, one can see a huge rise in the prices of all investment classes. Hence, it is important to keep yourself educated on which investment would be best in 2021. Our advisors at Bullishbuys have decided to give you a clear insight by taking a plunge into the most popular financial asset categories – Cryptocurrency and property investment. By the end of the article, you will know how to weigh your options and decide which is a better investment?

Cryptocurrency has been in the spotlight for quite a long time. Owing to its unbelievable return of over 1300%, the growth of bitcoins which is one of the popular cryptocurrencies from 2020 to 2021 has shocked many. 

Real estate on the other hand still holds its place as one of the hottest investment assets among investors. 

The unprecedented growth in the time of COVID-19 is another proof that real estate is the best and viable investment option. To bring out some better insights, we have decided to portray the pros and cons of cryptocurrencies investment and property investment. We are sure this will help you achieve a better decision.

Pros and cons of invest in cryptocurrency

Are cryptocurrencies worth investing in? Let’s analyse these pros and cons of cryptocurrency investment:

Pros:

Bitcoins will help you achieve better returns for a short term investment. When Bitcoin started its journey at $0.30 per unit, nobody would have imagined that years later the price of the same asset would multiply in thousands. 

Unlike other investment classes, cryptocurrency conducts digital transactions hence allowing its investors to conduct transactions from anywhere. No more waiting for overseas transactions. Cryptocurrency allows transactions to or from anywhere using only your mobile device.

Cons:

The cryptocurrency market is considered to be highly volatile and completely unstable. Investors are ready for an expected dip that can occur anytime. For instance, when El Salvador became the first country in the world to adopt BTC as a legal tender, Bitcoin plunged more than 10% within an hour!!. This only displays the distrust among people for cryptocurrencies.

Cryptocurrencies are not abided by any law. It obeys a decentralised system thus considered to be unsafe and risky.

The market has become highly competitive. Other than Bitcoins there are Etherium, Litecoin, etc. who are gaining popularity. This requires you to keep yourself updated and knowledgeable so that your investment goes into the right place.

Pros and cons of invest in Property Investment

Is property a good investment? We will have a better explanation with these pros and cons below:

Pros:

Is property a good investment? We will have a better explanation with these pros and cons below:

Being tangible, property investment is considered to be a less risky one. Even if the property may not sell at your preferred time, there are various ways to keep the cash flow coming. (Discussed in the below point)

Convert your property for the rental purpose to get good property rental yields. Alternatively, you can also make it a holiday home. With a real estate property, the options are plenty.

Want to calculate Rental Yield?

Cons:

There have been some changes in the tax legislation. When buying an investment property, there is a stamp duty of 3% involved. This enhances the already hefty initial cost.

Buying an investment property requires you to bear some initial costs worth thousands and thousands of dollars.

Unlike shares or bitcoins, properties cannot be sold instantly. It may take up to 3-4 weeks or even months unless a buyer finds your property attractive.

So, which is a better investment?

If you are a risk-taker and are interested in short-term gains, go ahead with Cryptocurrency investment but on the other hand the absence of any sort of regulatory body makes it highly uncertain. 

If you want to stay safe and are looking for a time tested sure shot investment, property investment is your best option.

What do you think about our verdict? Let us know in the comments below.

The market has become highly competitive. Other than Bitcoins there are Etherium, Litecoin, etc. who are gaining popularity. This requires you to keep yourself updated and knowledgeable so that your investment goes into the right place.

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