Crypto vs. Real Estate: Which Is The Better Investment?
When you want to build wealth or make sure you have a sizable nest egg for your retirement, investing your money is the way to go. But with so many investment opportunities available in today’s world, you may be wondering whether you should stick to something you know, such as real estate, or venture into the murky yet potentially profitable world of cryptocurrency. If you’re curious as to which is the better investment, here are some things you’ll want to consider.
What is Crypto?
While you’ve heard of Bitcoin, you may have little idea what it actually is in terms of being an investment. Crypto stands for cryptocurrency. It’s a new kind of digital currency that now allows you to buy, sell and invest using blockchain technology. There are several kinds of crypto now; each kind is called a token. As of now, there are thousands of different tokens, such as Bitcoin, Ethereum, Solana, Tether and many more. If this all seems a bit surreal, it helps to think of tokens in a similar way as car wash tokens or gaming arcade tokens. They are issued from different places, and can only be used in certain places. There’s a lot to know about crypto, so whether or not you choose to invest in crypto, you should educate yourself about all the details.
Does Crypto Have Benefits as an Investment?
Yes, crypto does offer advantages from an investment standpoint. First, it won’t take much money to get started. You can buy crypto with as little as a few dollars on most crypto trading platforms. When Bitcoin first came out—as the first crypto—you could buy it for just .08 cents per coin in 2010. Now, one Bitcoin is valued at an estimated $58,000. However, you can also buy fractional shares of any crypto, including Bitcoin. Also, there are many other more affordable cryptocurrencies available where you can get in on the ground floor, so to speak. This enables you to have a very diversified crypto wallet with little investment.
Perhaps the greatest benefit is the long-term upside cryptocurrency has for gains beyond belief, as in the case of Bitcoin. Other tokens, like Ethereum, have also demonstrated their massive growth potential with massive gains. Some people, whom you may have read about in the news, have taken their profits and already retired on savvy crypto investments.
Are There Any Drawbacks to Investing in Crypto?
When you invest in crypto, you have to take the good with the bad. To begin with, crypto is not a tangible asset like real estate. Because of this, it is prone to cyberattacks that could potentially leave you wiped out financially. In spring of 2021, hackers stole from about 6,000 customers of online crypto platform Coinbase. Coinbase made those customers whole again, but the hack highlights the vulnerability of digital currency exchanges like Coinbase.
Along with this danger, crypto has shown itself to be a very volatile investment, prone to large swings in either direction. While one month it may be experiencing a new high, the next month it may be at an all-time low. If you thought stocks were volatile, they’re nothing compared with the volatility of crypto. One reason for the vulnerability is that crypto is not part of the centralized banking system. It’s so new that governments are still struggling to come up with ways to regulate it. Therefore, before seriously investing in crypto, you have to consider your investment goals and how much risk you want to take
The Benefits of Real Estate Investing
Needless to say, investing in real estate has stood the test of time for hundreds, if not thousands, of years. One of the reasons for its popularity and reliability has always been its ability to bring investors passive income through monthly rent payments of tenants in both residential and commercial properties.
Another advantage of real estate is that it almost always appreciates in value over time, with property owners having to do little if anything to the property. This is especially the case when you invest in turnkey rentals from MartelTurnkey that already have a tenant and property management company in place. And by keeping up on maintenance and repairs through that property management company, you’ll likely increase your property’s value by several thousand dollars over the years.
Last but not least, real estate is a tangible asset that everyone needs. After all, people will always need places to live, conduct business and almost anything else you can imagine.
Real Estate Drawbacks
While there are not many drawbacks to real estate investing, it does have one or two drawbacks. First, it can be expensive to buy, own, and maintain. Coming up with that first down payment is usually the biggest hurdle that people face. However, by investing with a reputable turnkey real estate company and having a good property management company in place, these obstacles can be overcome rather easily.
Also, if you want to liquidate your real estate investment into quick cash, it may be easier said than done. Most often, it will take a few months to find a buyer for your property. With crypto, you can sell your stakes in a matter of minutes. However, since people are always looking for solid real estate investments, the process of selling a quality turnkey rental may be easier than you think.
So Which Investment is Best?
While cryptocurrency undoubtedly does offer some intriguing investment possibilities, most financial experts agree real estate is still a much more reliable path to take to build wealth and have passive income in retirement.
If you’re wondering why real estate is still considered to be advantageous over cryptocurrency, the primary reason comes down to risk. While Bitcoin and other tokens may sound like they can make you a millionaire overnight, the fact is that crypto is still a very speculative investment that puts your money at great risk. But with a real estate investment, you’ll have a tangible asset that most likely will increase in value year after year, be needed by someone on a daily basis, and bring you passive income while requiring very little of your time.
While the choice is ultimately yours as to which investment path you select, chances are that by taking your money and investing it in a turnkey rental property, you’ll build wealth much faster and safer than if you bet on crypto. When you’re ready to start securing your financial future, please contact us.
“Working with MartelTurnkey was a breeze. They helped me with every step of the process. From acquisition to financing to property management to insurance. They’ve surpassed my requirements and have rented the property out for more than I thought they would!”
~ George, San Mateo, CA