Though it’s clear why crypto isn’t bought on the traditional stock exchange, figuring out which of the two to invest in is less apparent. There are notable differences between both: read on to help figure out which you’d be better suited for.

Advantages of Crypto

Buying crypto is the new investment frontier, having been around since 2009 when Bitcoin was invented by the pseudonymous Satoshi Nakamoto. Initially used almost exclusively on the black market, crypto truly rose to stardom in 2017. It only hit $1 in value in 2011, though today it is worth $38,325.30 per token.

Crypto is especially appealing for investors who aren’t fond of heavy regulations. The decentralized nature of crypto is a huge draw for those who detest censorship: you can buy as much crypto as you want, at any time you want (as opposed to the stock exchange’s five-days-a-week, 9:30am to 4:00pm EST schedule), with no apparent suppression or corruption.

It is also revolutionary because of the anonymity and protection it affords. To invest in the stock exchange, a certain level of transparency is required: least of all your government name and social security number. Comparatively, crypto doesn’t even require you to use your real name when buying. All you need is some money (as little as $0.01) and you can begin investing: it doesn’t get much easier than that.

Advantages of Stocks

By far the biggest advantage of using the stock market for investing is its reliability. The NYSE–America’s largest stock exchange–has been around for a couple hundred years. With such a lengthy legacy, it is quite easy to form educated predictions about what kind of stocks will perform well. In comparison, Bitcoin was established in 2009 and didn’t really reach popularity until around 2015. Not only is Bitcoin’s legacy much shorter, but it is also much more volatile, even as crypto’s best-performing currency.

For those who are risk-averse, investing directly into crypto is not for the weary. But that doesn’t make it entirely unreliable. Five of the world’s billionaires earned their fortune through crypto, and the number is only growing.

The Bottom Line

Ultimately, financial health is deeply personal and one’s investment portfolio should reflect their own beliefs, not anyone else’s. It is much better to pour money into something you can actually stand behind, rather than what you see other people doing (though sometimes that has its perks, too).

After all, as the old adage goes: high risk, high reward. This goes for crypto and traditional stocks. Most–if not all–miraculous gains cannot be made without some sort of gamble, some element of uncertainty. With crypto, the wager is on more than just money: it’s on the future, and what it will look like.

Perhaps a safer option, for those straddling the line, would be investing in crypto-heavy stocks like those that are involved in the forthcoming Metaverse.