Investors have always been looking for better investment opportunities in whatever avenue doesn’t matter. The goal is always to multiply the capital, and gain the maximum return on investment. Lately, we have come across the two modes of the investments that have been in the discussion in every investor’s community.
The question that almost everyone has on their mind is whether you should put your capital in real estate market or you should invest all the capital in hand into the crypto currency or bitcoins that is a famous crypto currency.
If you are someone who is having some capital in hand and is confused between these two options, then this post is the best guide for you. You can have a brief overview of real estate vs. crypto currency, and what mode will suit you more.
We have tabulated the pros and cons of both these investments and also we have listed the brief rundown on how do both these investments work? Keep reading through the lines to know more and get any confusion or ambiguity go away. So without further delay, let’s jump into our main topic.
Real Estate Investments
The real estate investments you make work in several different ways. You can buy the property that you like for the purpose of selling it after holding, renting it, or just to satisfy your urge of doing the flipping business.
There are many benefits for investing into the real estate market like the properties do pay you well in terms of return on capital. The need of land increases day by day and this very thing stays in demand always.
Also, you get great taxation benefits from the state, as every other state offers great incentives on holding or just purchasing the real estate. It is also said that the real estate market is the driving wheel of any country’s economy, and the state ensures that the maximum efforts are put by the citizens to keep the wheel rotating. This is a reason why they always allure the investors by offering different tax benefits and other incentives to them.
In addition to this, the real estate business works on the portfolio, the more diverse one you have, chances are wide that you have enough of the experience to keep pulling out and injecting your capital into the market to get the best rewards.
Although the property that you purchase has quite a high rate of liquidation, but only sometimes you can also get stuck onto it. Proved, that investing into the real estate needs a long term commitment, and if you are ready for such a financial commitment, only then you should look to this option.
Investing into Crypto Currency
In recent days we are observing a new form of a payment method that is digital currency. As almost everywhere in the world, the paper currency is becoming less important and people have started relying on the digital payment methods. This evolution has brought a different concept of currency in the market.
Crypto Currency, and the most popular one in the category Bitcoins is the latest currency in the market. You can get the crypto wallet, purchase or mine bitcoins, and hold them in your wallet for as long as you want. For an added benefit, crypto currency unlike paper currency, is global and can be sold easily of a crypto exchange while staying at home.
Although there are many benefits but there too are some drawbacks, or you can say cons of doing this business. The major and most harmful drawback of crypto is this is 100% digital and it stays on the internet 24/7. That makes it much viable to the cyber-attacks and the risk of being stolen or taken away always remains there.
The crypto currency or the bitcoins is a novel concept and there’s not much of the trade done on this platform till now. So by default, we do not have much data to establish any facts regarding the trends, spikes or traditional culture related with this business. However, one thing that has been recorded in the past is that the business is 100% peer-to-peer and is not backed by any specific organization, firm, entity, business, or state. That’s why it has also been observed that the market is quite volatile and does fluctuate by little or no physical changes. Hence, this is quite a risky business, and you should only invest if you are ready to take this much of risk.
Real Estate or Crypto Currency; A Comparison
When it comes to making a comparison line by line, it often becomes quite difficult to state because of the already high and growing influx in both these businesses. However, depending upon the already set parameters we have listed a not-so-deep comparison between crypto currencies vs. real estate business.
First of all, real estate business involves a high amount of capital to dive into the market, while this is not the case with the crypto currency. You can buy bitcoins worth $100 anytime you want and keep them into your wallet.
The next thing that we have is high liquidity of bitcoins; since it is a peer-to-peer business so you can find someone to buy in the same market very soon. Although, the properties do like it sell faster because there is always a need for the land, but somehow the property can also get stuck and take several weeks or even months to sell.
Last but not the least, is the maintenance. Real estate properties require a lot of maintenance, like after you purchase you have to look after your property to keep it safe from any intrusion or any other outside physical harms. Nevertheless, this is not with the bitcoins. This is a very low-maintenance business, and doesn’t even require much of the efforts to be made.
Finally, the only factor that makes real estate a better, more feasible and viable option for investment against crypto currency is that it is always backed by some state organization, and state itself. In case of any unfavorable situation you can always look up on the state bodies that can take up your matter and assist you in any regard. However, this facility is not applicable on the bitcoins as it is not backed by the state organizations or the statutory bodies.
We have provided you with a brief comparison between the real estate vs. crypto currency business, that which one is the better investment option for you. Before making any investments we always recommend you to take advice from a professional or your financial advisor. Invest into the business that diversify your portfolio, improves your reputation, and the business that you have experience doing business in. Also, keep it in focus that invest your hard earned capital only into the businesses that are backed and allured by the state, which is definitely the real estate industry. And even after reading this blog post, you still have any questions and ambiguity in your mind, feel free to ask us. We will be more than happy to assist you in any regard.