Crypto vs. Real Estate: Volatility, Predictability, and Consistent Cash Flows

At the point in time when people start getting a consistent cash flow and feel comfortable with the amount of money they are earning as it can essentially accommodate all of their bills and buying habits, there comes the next step in personal development in the form of investments.

Everyone wants to see their capital start growing, preferably without having to struggle for every single dollar they make.

With a bit of work, research, networking, and luck, many people will succeed in investing within lucrative, diversified investment options.

For decades, one of the most lucrative as well as proven ways through which people could make a solid investment, which would earn them passive income, was through real estate.

However, with the rise of blockchain technology, and cryptocurrencies such as Bitcoin (BTC) making a huge splash in the market, many are considering branching out within that industry as well.

Today, we will be going over everything you need to know surrounding crypto and real estate, so you can have a better perspective on which option can provide you with better results.

Investing in Cryptocurrencies

We will be going over cryptocurrencies first. These are essentially digital currencies that are intended to be utilized for the purchase of goods or services. Some individuals, however, have the main interest of investing in them in order to trade them down the line or for a profit.

There are over 20,000 cryptocurrencies out there. However, one of the most well-known cryptocurrencies is Bitcoin.

Bitcoin was originally conceptualized in 2008 but was officially released in 2009, where it took the world by storm. It is one of the most popular cryptocurrencies and the largest cryptocurrency in terms of market capitalization as well.

Bitcoin established itself as a viable cryptocurrency through the introduction of the Proof-of-Work (PoW) consensus mechanism, which involved the process of mining towards validating transactions and ensuring that each transaction is valid, as each one of the transactions gets stored in a transparent public ledger.

Over time, we saw an evolution of blockchain-based projects as they introduced the Proof-of-Stake (PoS) consensus mechanism, decentralized applications (dApps) as well as non-fungible tokens (NFTs).

There are numerous benefits when it comes to cryptocurrency investing.

Why Invest in Cryptocurrencies

  • Cryptocurrency transfers are easy to make because they are conducted by a series of privately connected computers that share a ledger. This is done through a peer-to-peer (P2P) network.
  • Cryptocurrencies also present a low barrier of entry. For example, you do not have to buy an entire Bitcoin (BTC), but you can buy a fraction of Bitcoin instead. Many online brokerages and exchanges will typically have a low minimum deposit limit, from $10 to $50, which means that just about anyone can begin investing in cryptocurrencies.
  • Cryptocurrencies have an extremely high level of volatility and can jump in value all over the place. Bitcoin was worth $100 at one point in time, then $1,000, then at its all-time high, it reached $69,044.77 and is now trading at $20,330.61. However, one thing remains true: anyone who invested in Bitcoin early now has far more than they could ever gain from traditional financial investments. This volatility can be the main point of appeal for a lot of users. However, those that got into BTC when its value was high, experienced high losses, so there is a high level of risk involved with cryptocurrency investing.
  • Cryptocurrencies are extremely volatile; they are not that predictable. However, they can provide consistent cash flows through the utilization of staking, yield farming, or providing assets to liquidity pools.

Investing in Real Estate

On the other hand, investing in Real Estate is still one of the best ways to invest if you want to save for retirement or even build wealth. This is because it is a proven form of investment that has stood the test of time as an investable asset.

There are many different ways to invest their money in real estate, including investing with developers, wholesaling, house flipping, and even Real Estate Investment Trusts (REITs).

Investing in Real Estate, when seen from the perspective of traditional investments, is still one of the most popular and simple ways through which someone can begin their investment journey.

Why Invest in Cryptocurrencies

  • Whenever you invest in real estate, you are investing in a tangible asset, one that you can see in the real world, touch, and even feel. It has an intrinsic value because of what it is.
  • Real estate is a necessity, as people will always require a location where they can live in, work in, or a place where they can relax or even exercise.
  • As a real estate owner, you have the ability to make strategic improvements through it, which can result in higher monthly returns in the form of rent, and due to the fact that real estate investment value is based on the net income it produces, they can increase the value of the property.
  • Real estate brings a steady, secure source of income and passive cash flow as well, as monthly rents can be used to cover any mortgage payments on a property and many other expenses as well, all whilst leaving some room for profits.
  • Real estate investments are not nearly as volatile as cryptocurrencies; they are extremely predictable and can provide a consistent cash flow which is also predictable.

Moving Forward With Your Investments

It is clear that both cryptocurrency investments, as well as Real Estate investments have their place within the market.

Those that prefer a more modern, risk-heavy form of investment that can offer a high level of excitement, however, potential losses on a rapid level, will enjoy dealing and investing in cryptocurrencies.

Those that prefer a more traditional approach to investments, however, will find that investing in Real Estate is a proven and time-tested way through which they can put their capital to use and earn passive income.

While real estate investing was difficult at one point in time, Propchain makes investing in real estate easy and accessible to everyone, as there is no need for a large down payment or mortgage, and there are curated opportunities as well as diversified investments with consistent monthly cash flow. You can try Propchain today.

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