Gold vs cryptocurrency? Which one should you invest in and why?

With the surge in popularity of cryptocurrency in the last couple of years, investors are faced with a dilemma. Should they invest in gold, considered a safe haven for investors, or adopt the new kid on the block, which has been giving double returns, the cryptocurrency?

Here are some key points for you to analyse before choosing between the two:

1. Financial goal

Cryptocurrencies like bitcoins have proven to give ideal returns when held for a longer period. So if you are looking for short-term growth on your investments then physical gold will be a better choice.

2. Liquidity

Both gold and cryptocurrency are liquid assets. However, since cryptocurrency is a digital asset you can easily sell it with the click of a button. You can also trade them 24*7 on international exchanges as well. With physical gold, one will have to adhere to local timings to liquidate the asset.

3. Volatility

Being comparatively new, the fluctuations in the cryptocurrency market are pretty high. On the other hand, gold, a veteran in an investment portfolio, has been proven to give its investors stabilised guaranteed returns.

4. Security

One is a physical asset while the other is a digital asset. Between the two, storing gold is a more costly affair since it requires lockers, custodian cost and much more. With cryptocurrency, it’s like storing your stocks on the exchanges. To counter the fear of cyberattacks, investors can also opt for a digital wallet with a private digital key to access their cryptocurrency offline.

To conclude, digital currencies are the latest evolution in financial currencies. However, it doesn’t mean they outclass the old performing gold assets. Both have their pros and cons. After carefully analysing the above key points, choose the one that is a better fit for your personal financial growth.

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