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Which market gives the highest return on investment?
As seen in the graph above, the 2020 annual return of the 10 largest companies in both markets were higher in the crypto market than that of the stock market.
In the stock market, the one that obtained the highest growth was Apple with 79.27% and 2 companies had negative growth and in the crypto Link market, it was the one with the highest growth with 528.25% and one cryptocurrency had negative growth.
But before drawing your conclusions, read my article first and at the end as always, I draw my conclusions.
How many times have we asked ourselves what we can do to get a second income stream and what to do with that extra money? Do we save it, invest it in a business, create a passive income, or do we take a chance and invest it in the stock market?
Today the great financial crisis has most of the people in the world on the verge of a nervous breakdown, which makes us think how to be creative and take advantage of the situation and the vast majority of us look to technologies that do not stop to move forward and make the world look smaller and smaller and what better examples such as the internet, social networks, and a new opportunity that is coming with the decentralized internet among others.
This new technological era has meant that large traditional companies will adapt to the new reality by taking advantage of these new technologies and thus not being left behind, unfortunately for these companies their market capitalization has been lower than the newborn technology companies, so much so that in the stock market in New York the first 5 companies as the largest are all technological, which have benefited a lot from the crisis of 2020 since their shares have risen, many people see this as a golden opportunity to invest In the stock market. For others, it is very risky, some see the bear market, others the bull market and the crisis has dragged on with various confinements that others see the kangaroo market (it goes up and down).
Due to the health crisis, most of the businesses are closed, many have gone bankrupt, and the new ones who want to enter the market are not incentivized because they simply cannot do it, that lack of opportunity has made us wonder how to invest or generate some passive income, and one of the answers is in the stock market and in the crypto market. In many countries, governments have been giving economic aid so that their citizens could bring food to their tables, but a large number of people have used that money to invest them in the stock market and there has been a large increase in the purchase of cryptocurrencies in the hope that some of them will rise like foam and help them to get out of the financial crisis in which they find themselves.
Now is it better to invest in the stock market or in the crypto market?
Like everything in life, both markets have their pros and cons. What should you take into account before investing in the stock market? What you decide to do should always be illustrated, first see the risks, do research and have knowledge of how the stock markets operate, once that is done you should look and investigate in which company or project you are going to invest in the case of the stock market that is much older and the accounting is public can acquire much more data and make a much more successful stock purchase you must ensure if you are going to do it in the short, medium or long term. In the short term, it is more speculative and in the case of a crisis like the one we are currently experiencing is a good opportunity since the shares are still at a low price and will rise again, it is also healthy to diversify the investment, not all the money in a single company.
In the stock market, the shares go up and down, but regardless of that if there are profits, they will receive dividends, the stock only operates on normal days at normal hours.
In the crypto market, it is relatively new but it has come to stay, here there is also a good opportunity to earn a good income but the task of investigating must be deeper, and you must take into account if you will do it in the short, medium or long term for that, you must look and read the white paper and the roadmap of the company that you want to invest in, you need to investigate who the CEO is and who is behind the project, for that there are several web pages that give that real information, that is very important because many scams are easily presented, here all companies are blockchain and they need to create cryptocurrencies to be able to work, they can do it through miners who must decipher a puzzle that they use with the proof of work system such as bitcoin see here or proof of stake that they mine according to the number of coins they have.
Here in the crypto market, it works every day of the year 24 hours a day so if you plan to invest in the short term or speculatively you must have nerves of steel because if you are sleeping and your currency collapses the price will go down and you will not realize it until after waking up, maybe all your earnings will be gone.
Conclusions
1- You must bear in mind that in the stock market most of the companies in 2020 were harmed by the pandemic except for a few sectors such as technology.
In the crypto market, the pandemic did not harm it and at this moment the one known as the bull is in a boom but also the prices are correcting.
2- You must bear in mind that the stock market does not work every day and only a few hours while the crypto works 365 days 24 hours, therefore it is very important to do the task well when investing in this market to minimize some losses.
3- I think that you can invest in both markets, some experts recommend first starting with the stock market and then with the crypto, but in the end, I think that everyone invests wherever they wish, but my recommendation is that they do their homework well before investing.
4- Be sure to use prestigious exchanges in the case of crypto and brokers in the stock market since, in order not to lose that prestige, they make a thorough study of all the companies that are going to list for the purchases and sales of shares or cryptocurrencies.
What do you guys think where you should invest your money? Make your comments.
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