In the world of investing, there are a lot of different markets to choose from : the stock market, bonds, and of course, our favorite market, the crypto market. Which one suits you the most ?

Photo by Markus Winkler 

The Crypto Market

As you may know, the main difference between the stock market and crypto is the fact that the latter is open 24/7. This can be difficult to handle for some people, as there’s always the urge to look at the market due to its high volatility. Prices can skyrocket or dump within the span of an hour.

Of course, the main advantage is that a lot of money can be made, but this comes with associated risks. Even if you stick with Bitcoin, known as the safest investment in crypto, you will still see a very high return on investment compared to other investments (except Nvidia at the moment, but that’s another story).

Source : VisualCapitalist

The main drawback is that the market is very young and unregulated, so there are a lot of scams. Anyone can create a token in less than 30 minutes.

The Stock Market

First of all, as you may know, it’s a safer investment than crypto. It’s been around longer, with the S&P 500 dating back to 1957.

Also, you invest in companies compared to crypto, so you are more in touch with what you’ve invested in. You can also simply invest in Exchange Traded Funds (ETFs) like the S&P 500, which allow you to invest in an index that tracks the 500 biggest companies in the US. It’s much safer than investing in individual stocks because it allows for diversification, which is key when investing.

Source : VisualCapitalist

Additionally, the major advantage is dividends, which are payments distributed by some companies to reward their investors. If you reinvest those dividends (some ETFs do it automatically), you can profit from compound interest, making your investment grow even more. Some companies even give you some of their stocks for free.

However, the prices in the stock market, especially ETFs, can take a long time to increase or diminish compared to crypto. Some companies can also lose 90% of their value or even go to zero. So it really depends on your profile. Personally, I do both.

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Disclaimer : This is not a financial advice, you need to do your own research !