With the advent of digital currencies, many investors are wondering if they should put their money in gold or cryptocurrency.
While there are pros and cons to both investment options, here are ten reasons why you should consider buying gold with Bitcoin.
You can physically hold gold in your hand, while cryptocurrency only exists in the ‘cloud.’ If you’re looking for something you can touch and feel, gold is the better option.
- Length of Time
Gold has been around for millennia and is a tried-and-true form of currency. Cryptocurrencies are still in their infancy, and it’s yet to be seen if they will stand the test of time.
There is a limited supply of gold in the world, which makes it rarer than cryptocurrencies which can be created out of thin air. The limited supply makes gold more valuable and less likely to be impacted by inflation.
- No Digital Risks
Gold can’t be hacked as cryptocurrency wallets can. This makes gold a much safer investment since your assets can’t be stolen by a cybercriminal.
- Hedge Against Market Instability
Gold is a safe haven asset that tends to retain its value when the stock market crashes. So, if you’re looking for something to protect your portfolio from a market downturn, gold is a good option.
Adding gold to your portfolio helps diversify your investments and reduces your risk. This is because gold doesn’t move in sync with other asset classes like stocks and bonds, so it provides an important source of return when other investments are struggling.
- No Minimum Investment
You can buy gold in small increments, starting with as little as $20 worth of gold. There’s no minimum investment required like there is with some cryptocurrencies.
- Easier to Buy and Sell
You can easily buy and sell gold at any time without having to worry about finding a buyer or seller like you would with cryptocurrency. And there’s no need to worry about custody fees or storage costs like there is with physical bullion bars either. All you need is a reputable online gold dealer.
- Can Use for Jewelry
Not only is gold a financial asset, but it’s also useful for making jewelry and other physical objects. So, if you ever need cash flow in a pinch, you can always liquidate your gold jewelry without having to sell your investment at a loss.
- More Market Liquidity
Gold has more market liquidity than cryptocurrencies, which means it’s easier to buy and sell without affecting the price too much. This makes it ideal for investors who want to exit their position quickly or take advantage of short-term price movements.
All in all, these reasons show that investing in gold can be a smarter choice than investing in cryptocurrencies right now.
However, only you can decide what’s best for your portfolio based on your individual needs and goals. If you’re still not sure which asset is right for you, consult with a financial advisor today.