Crypto or Stocks 5 Things To Know (Pros & Cons)

If you have been considering to invest in the Cryptocurrency market you would be expecting a good return.

Cryptocurrency being the latest investment opportunity is very alluring but before investing anything, you need to consider, is it a better investment opportunity then the Stock Market.

Is Crypto Better Than Stocks? (Pros & Cons Of Both)

Investing in either Cryptocurrency or Stocks both have their own types of risks, but with no risk no return right? When you are wanting to invest your money it is wise to know all the ins and outs first.

Is Crypto Better Than Stocks?

Cryptocurrency is a fairly new and has been around for only a short period of time where as stocks have been traded for years.

Cryptocurrency is highly profitable with this profitability comes volatility within the market, this may lead to it being risky at times.

Where as stocks are a safer and a stable investment, but do also carry risks such as companies going bankrupt or price change within the market.

Both investments carry there own risks and need research and study before investment.

This is the short answer. We are going to discuss throughout this article on the pros and cons of both crypto and stocks so you have a better understanding on both.

1. Is It Better To Invest In Crypto Or Stocks?


We all have heard about cryptocurrencies and especially about the 2 biggest ones, Bitcoin and Ethereum. These flagships, whose market now reaches 1 trillion in the case of Bitcoin, do not attract buyers as much.

Why? Their high price and perhaps the question “how high will they go up” are the facts that prevent new investors.

However, if you are a beginner it would be good to start with the big projects, which do not have such fluctuations, while the risk is much lower. In any case, always make your analyzes-estimates.


Privacy of transactions
Cryptocurrencies offer the privacy of transactions, which is the quintessence of economic liberalism.

In the late 1970s, Nobel laureate Hayek advocated for private currencies that could replace government-issued currencies.

Of course, neither blockchain technology and Bitcoin existed in the late 1970s, nor personal computers.

Expanding The Means Of Trade
Cryptocurrencies are the “representation” of the digital époque.

Once the right institutional framework is created and their extremely high volatility is reduced, digital currencies will be consolidated as an alternative medium of exchange.

Cost Reduction
The “competition” between cryptocurrencies (such as Bitcoin, Lite coin, Ripple, Ethereum), and the technological innovations they incorporate (such as Blockchain) are expected to work well for consumers.

The formal financial system will have to adapt by reducing the costs of traditional payment methods and commissions to pave the way for a new world of a cashless economy.

High Returns
The high risk of an investment is not necessarily bad.

Ιf there is awareness and proper information, an investor may decide to place a very small part of his investment portfolio (e.g. 1%) in cryptocurrencies with the possibility of making high profits by taking, of course, the corresponding extremely high risk.


Strong Volatility
Digital currencies are extremely volatile.

This means that they can not, at the moment, function as a reliable trading product, as their sharp fluctuation “scares” the trading parties and creates insecurity in the market.

Lack Of Institutional Framework
One of the main disadvantages of cryptocurrencies, for a large portion of users, is that both their issuance (extraction) and their circulation are surrounded by a “mystery”, which is largely due to the lack of an institutional framework.

Institutions and heads of investment giants have, however, expressed the view that central banks should somehow regulate cryptocurrency transactions, which could also happen by controlling transactions at special exchanges.

Use In Illegal Activities
One of the biggest fears expressed by “crypto-skeptics” is that digital currencies are widely used for criminal activities; with the use of appropriate techniques, the “traces” of transactions disappear, such as the financing of terrorism.

This issue must be taken very seriously by the cryptocurrency community.

Reduced Reliability
Another weakness of cryptocurrencies is the lack of credibility, as they are not “normal” currencies issued by a central bank, based on specific rules.

They are not backed by an institution that can act as an emergency lender, such as a central bank.

In any case, however, credibility is something that is built over time and this is also true in the case of Bitcoin.

Lack Of Valuation
If you wish your investment to be safe, your cryptocurrencies should be valued, as in the case of stocks.

The issue of valuation is important, as no one can currently know their exact (fair) price.

There are still no cryptocurrency valuation models and the noise and ignorance that surrounds them confuse and disorient the investors.


When a company needs liquidity, it can get a loan from the bank. Another option is to issue shares. When you buy stocks, you invest your money in a particular company.

When a company issues new shares, the company receives the money invested by you (and other investors). The buyer of a share is called a shareholder. In return for your investment, you become a co-owner of this company.

Investing in stocks is not a one-way street. In other words, there is a possibility, as has happened many times in the past, that investors will lose money by investing in stocks.

It is very easy to lose money by investing in stocks.

However, analyzing the trends that have manifested in the stock markets in the past, it is obvious that investing in them can offer attractive profits.


Based on international and domestic investment experiences, stocks are one of the most profitable investments, showing perhaps the most significant returns against other options.

Stocks are not a guaranteed profitable “bet”. On the other hand, if you want to win, you must be willing to take risks. In other words, the investor who is prepared to win should have reconciled with the idea that he might lose.

This is of course a threat that does not exist in those cases where investors choose to put their money in a bank account.

Investing in stocks has proven in the past one of the best ways to safeguard the value of savings against the “catastrophic effect” of inflation. If you keep your savings in a bank account and if the trends of the past are repeated, the purchasing power of savings might decrease.

The point is to try to fight inflation by ensuring that your savings are invested in accounts that offer high-interest rates. You might decide to tackle inflation by placing your capital in a deposit account that offers the highest interest rate on the market.

By investing in stocks, however, you have the ability not only to tackle inflation but also to tackle the rising cost of living. The Retail Price Index measures inflation or changes in the daily cost of living, as it is better known.


The stock market can be lucrative but it carries risks. It is important to be aware of the risks associated with investing.

With stocks, for example, price risk is an important factor. The stock you are buying today may have no value tomorrow.

Apart from the foreign exchange risk, there is always the possibility of the company going bankrupt. Before you start investing, there are some important factors to consider.

It is helpful to determine the amount of risk you are willing to take and which products are best for you.

It is also not recommended to invest money that you may need in the short term or to take positions that could cause financial difficulties.

2. Is Crypto More Profitable Than Stocks?

Investing in cryptocurrencies is an option that can be extremely profitable. In macroeconomics, however, the rule is that the higher the expected return, the greater the risk of investment failure.

So apart from being extremely profitable, it is also a potentially risky investment. Stocks are a much safer option, without being completely risk-free.

Undoubtedly, the fluctuations in stock values ​​are much smaller than those of cryptocurrencies. The choice lies in your economic profile and the goals you have set before making any investment plan.

3. Is Better To Invest In Cryptocurrency Or Stocks?

The average growth rate of stocks during the last 10 years is 9,2% -according to Goldman Sachs-.

Stocks are an investment product of great longevity, so in theory, at least, it is a more stable choice.

The cryptocurrency market is a relatively new platform, which involves the obvious risks that appear in everything new in the world of money. Individual stocks, however, are still considered an asset quite prone to change.

Compared to cryptocurrencies, they are more stable.

The notion that investing in crypto is high risk is not wrong. However, with rational risk management, it can be successfully treated. It is enough to handle your money wisely, with strategy and method.

4. Is Crypto Riskier Than Stocks?

As mentioned above, the main disadvantage of cryptocurrencies is their instability in the markets.

Stocks are not one of the classic fixed investment options but compared to cryptocurrencies they are less prone to fluctuations.

If you are not an investor who loves risk, avoid both of these options. Otherwise, prefer the stocks. Unless you invest a very small amount of your portfolio to experience cryptocurrencies at any cost.

Cryptocurrencies are often paralleled with the digital revolution of the Internet in the late 1990s.

Those who rushed to invest in stocks of digital technology companies faced serious losses. Of course, cryptocurrency is a slightly different revolution: it is a currency that virtually abolishes the concept of the bank.

As revolutionary as it sounds (and it is), it is wiser to wait a few more years to see how much it will stabilize in value and how reliable the cryptocurrency map will be in our daily lives.

5. Is It Easier To Trade Crypto Or Stocks?

Trading is just as easy whether you invest in cryptocurrencies or stocks.

Digital assets are so ubiquitous and in high demand that platforms built to satisfy even the most demanding investors are designed to be easy to use, even by those with no experience at all.

The offered trading orders are as follows: buy, limit and stop (or stop-loss). In any case, the decision is yours!


All articles on including this article are intended only to be used for reference purposes. No information provided on the web platform constitutes advice or a recommendation for investment or advice of a trading strategy suitable for any specific person. confirms that no guarantee is presented or implied as to the accuracy of specific forecasts, projections, or predictive statements contained herein. Readers of this article agree to and to all articles that does not take responsibility for any investment decision.

Please seek professional advice before considering investing or trading.

Scroll to Top