One question we are getting often is… “Should I be investing in cryptocurrency instead of commodities?”. This is a really good question and one we are going to answer for you here in this article.
First, let’s clear something up, cryptocurrencies are currently treated as commodities due to the fact that if they were listed as securities they would be regulated differently. The world of crypto is and was founded on being against that type of regulation.
So when we talk about commodities vs crypto, we’re actually talking about traditional commodities vs the intangible cryptocurrencies in the market.
Let’s Look at Commodities vs Cryptocurrency
The biggest differences between these two traded assets is that traditional commodities are tangible, stable and “eternal” while cryptocurrency is intangible, highly speculative and very new.
So why would anyone actually invest in cryptocurrency?
- Potential for high returns
- Easy to trade individually
- Unregulated with fewer rules / accountability
This is the exact opposite of what someone adding traditional commodities into their investment mix is looking for. With your traditional commodities, futures and ETFs you’re looking for…
- Stability
- Incremental Growth
- Hedging to Preserve Wealth
So Which Investment is Better?
The answer to this question is easily determined by what you are looking to do in your investment portfolio. But we can tell you that due to how new and how volatile the cryptocurrency space is, placing big bets in this space is very risky and for the investors we work with they are advised to stay away or invest with caution.
Contact Us Now for More Information or Talk About Investing with TCI Partners
Call us at 470-363-4080
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