Investors have turned to both gold and cryptocurrency as alternative investments meant to keep their money safe. But how does crypto compare to gold? What are the advantages and disadvantages of these currencies, and should an investor consider one over the other?
The Many Types of Crypto
First, let’s establish that there are many different types of cryptocurrency. There are thousands of various active cryptocurrency projects, with newly-created ones emerging all the time. A handful of significant players acquired global recognition as effective currencies, but there are also hundreds of projects that have barely seen the light of day.
Because of this, it’s challenging to pool all cryptocurrencies together in the same category. Some cryptos are riskier and less liquid than others. Some have much more aggressive growth potential than others. You’ll need to keep this in mind when we discuss some of our points on how crypto compares to gold: some of the advantages of crypto simply won’t apply to all cryptocurrencies….