We all know there is no such thing as a risk-free investment. However, we want to protect our profits while making the most out of them. That is why we tend to constantly compare different investment methods to check if our assets are on the right path. This balance of risk became quite a controversy with the apparition and rapid increase of cryptocurrencies. But is silver better than crypto when it comes to investments?
Cryptocurrencies and silver keep some similarities between them. As they are still a new asset, there is much to learn before deciding to switch investments. The digitality of cryptos holds some disadvantages, such as hackers. However, this may also serve as a pro regarding other factors.
When looking for the best asset to invest in, there are many factors apart from the profit that we need to consider. Of course, these factors may serve some people, while others prefer risk or uncertainty over profit. Still, we cannot refuse the concept of knowing what you are investing in. That is why we decided to list the similarities and differences that cryptocurrencies hold against silver as investments.
In What Ways are Silver and Cryptocurrencies Similar?
Silver and cryptocurrencies can come across as totally different assets at first glance. However, as they are two variables of investment that hold characteristics of their own, many of them get to a point in common. So, here is a list of the similarities that silver and cryptocurrencies have with each other.
- Silver and Cryptos are an alternative to currencies: Both assets serve as an alternative to national currencies. Volatility in traditional currencies has become so flat that investments take a very long time to gain enough profit. As a plus, investing in your country’s currency is not as profitable as it may seem. Inflation rates are usually far below the profit margin, even more so since Covid-19.
- Both assets avoid the need for a third-party trust: Neither silver nor cryptocurrencies require a third-party trust. If you want to buy crypto, you just do so. If you’re going to buy silver, you just do so.
- Neither can be stored in a bank: This is a good similarity, as you can keep your assets – and profits – on your own. However, this may change shortly if bank entities decide to include new technology.
What are the Main Differences Between Silver and Cryptocurrencies?
Of course, these similarities by no means make silver and cryptos an equal asset to invest in. We want to show here that although they may look very different, they still hold some advantages compared to other investments. Depending on your preferences, you may feel inclined to prefer either of them. So, these are the main differences between silver and cryptocurrencies.
- Tangibility: Silver is a tangible asset, while cryptos are digital. Transportation is more accessible in the case of cryptocurrencies, but they also require more care. A wet flash drive containing assets can be quite a problem. On the other hand, protective cases avoid silver from any harm that may lower its value.
- The danger of hackers: Being a digital asset, cryptocurrencies are vulnerable to hackers. This has happened in the past. As new technologies become more advanced, so do the methods to get into your online vault and get hold of your belongings.
- Trading speed: Cryptocurrencies are easy and fast to trade. Moreover, you can even use crypto to pay for different products or services online in some cases. You cannot use silver to do this, as you need to transform your asset into money, e.g. U.S. dollars, to use it as a currency. Although virtual wallets allow you to buy or sell precious metals in a second at the best spot price available, and this difference is becoming less of a threat. For more information, see Sound Money Wallet.
- Volatility: We have seen cryptocurrencies skyrocket within days. We have also seen them go to the lowest values in months. The craziest thing about this is that a single tweet from an influential figure can decide the course of your assets. In the case of silver, volatile as it is, it requires more than that. As a plus, silver is undervalued nowadays.
So, What Should I Invest In?
Even though our idea is not to give financial advice on which asset is the best, there are some things that we can encourage you to bear in mind when this question comes up. Both silver and cryptos require some experience and knowledge before jumping into an investment. Do research, understand risks and expenses. Once you get hold of all you need to know, you can decide what to do with your assets.
Remember that, whatever the choice, you will need to pay attention to whatever is happening to every single factor that can influence your asset. This includes government measures, worldwide financial events, and new technologies. Feel free to contact us for any guidance on investments. We will be thrilled to hear you out and share our knowledge. You can also subscribe to our weekly newsletter to keep in touch with any news and updates.