Why is Investing in Cryptos Better Than Stocks in 2021?

For decades, stock investing has been the mainstay of financial money makers and has been the main way that retail investors have been able to generate an income form the world's financial markets, with stock investing capturing the imagination of many people after being heavily included in many Hollywood films over the past 40 years.

However, a new financial asset class is surrounded by massive amounts of hype in 2021 as it has been for much of the past 10 years of its existence, and today many investors and traders that were previously focusing on stocks have now switched their attention to cryptocurrencies based upon the higher potential for the generation of revenue.

This guide takes a deeper look at why investing in cryptos is better than stocks in 2021, starting with a look at how profitable investing cryptocurrency can actually be, before looking at what the steps are to investing in cryptocurrencies, the best platforms online in 2021 to use to investing cryptocurrencies, and then finishing off with a few comparative points about why investing in cryptos is better than stocks.

How Profitable Can Crypto Investing Be?

Cryptocurrency investing has been the most profitable way of generating money over the past 10 years with the profits from investing in Bitcoin throughout its life being more than 30,000,000% and this absolutely eclipsing any other investment opportunities throughout the same period of time.

While the early opportunities in the cryptocurrency market are now largely over, there are still huge opportunities for investing in cryptocurrencies to be able to generate the kinds of ROIs that stock traders and forex traders can only dream of.

Particularly in this year where there is a new crypto bull run forming, investing in cryptocurrencies in 2021 is likely to be a highly profitable and largely beneficial way of interacting with global financial markets.

What are the Steps to Investing in Crypto?

Fundamental Analysis

The first step to investing in cryptocurrencies is performing fundamental analysis on the different investment opportunities that are available and looking at a range of real world factors that may determine the long-term value and increases in price.

Fundamental analysis is the mainstay of financial investors, with factors such as the team behind each project, the state of the market currently, any upcoming developments in the project, and any potential risks relating to the solutions that the project is trying to solve all factoring in two it's predicted value.

Fundamental analysis is an extensive process that can take years to study thoroughly, but one that provides critically important insights into the value of different cryptocurrencies and can lead to the significant generation in revenue as a result.

Select a Good Trading Platform

Selecting a good crypto trading platform to use in order to invest into different cryptocurrencies is another key step in the process of investing, with that being a big difference in the results that can be seen from selecting the best platforms in the market compared to the worst.

First start, the cryptocurrency space is renowned for scams and the risks involved with using it, and therefore by selecting the wrong cryptocurrency platform investors can open themselves up to losing all of their funds.

As well as this, many of the top cryptocurrency trading platforms on the market have unique and powerful tools that can be used to gain deeper insights into each investment opportunity and can often yield better results as a result of using these platforms in comparison to using other platforms.

Place Investments

The next step in the process is to actually place investments with this being done by using charts to predict optimal entry points and the desired exit point as a result of creating the investment.

Most cryptocurrency trading platforms have similar sorts of interfaces that allow for the simultaneous management of different investments and creation of new trades as well.

Placing investments should only be done once thorough research has been done into each opportunity to analyze which opportunities are better than others and have a high likelihood of generating optimal outcomes and reduce risk.

Monitor Investments

The last step in the process is to monitor any investments that have been made in order to understand when exiting will be optimal and when successful investments can be completed.

By using high-quality crypto trading platforms often a range of tools and charting features will be available in order to be able to monitor each investment effectively and to understand metrics such as the generation of profit, and the potential growth of the value of the asset over time.

There can be a significant difference between platforms that provide limited services for being able to monitor investments, and those that have provided a large amount of detailed analytics in order to be able to more effectively manage cryptocurrency investments.

Where are the Best Crypto Investment Platforms?

PrimeXBT

PrimeXBT is easily one of the best platforms in the cryptocurrency market to use in order to place and monitor investments, with PrimeXBT's user interface being easy to understand and navigate with a bevy of powerful tools for investors to be able to take advantage of.

PrimeXBT also charges the lowest fees of any major crypto trading platform the market with a low flat rate of just 0.05% being applied to all trades, and as well as this PrimeXBT has higher liquidity and trade volume throughout all trading pairs with up to $6.2 billion of global trade passing through PrimeXBT's doors every day.

Lastly, PrimeXBT is renowned for being a secure trading platform that protects the funds of its investors using a range of bank-grade security measures including hardware security modules with rating of FIPS PUB 140-2 Level 3 or higher and cold storage of digital assets with multi-signature technology.

Binance

Binance is a favorite amongst crypto investors as it provides one of the widest ranges of different cryptocurrencies in the market, and also provides a range of financial tools as well.

Binance has grown rapidly since its launch in 2017 as a result of the high-quality trading and investment experience that it provides for its users, with Binance having its own native token as well that can cut the cost of trading dramatically.

However there are a few drawbacks to using Binance such as the fact that it's fees are high from the start and much higher than other platforms such as PrimeXBT, as well as the fact that for a Binance was hacked in 2019 for more than $50 million of its uses funds and therefore there are security considerations with this but the platform as well.

Kraken

Kraken is one of the oldest trading platforms in the cryptocurrency market that is still in operation and one that has been a longtime favorite of cryptocurrency investors as a result of the high-security on the platform that has prevented hacks.

Kraken lists a decent range of cryptocurrencies to invest into and also provides professional tools in order to be able to monitor any investments that have been made in the cryptocurrency market.

While Kraken isn't as large as PrimeXBT or Binance and doesn't have as high liquidity and trade volumes, there are many advantages to using this platform for cryptocurrency investing therefore it is still certainly worth considering.

Why is Investing in Cryptos Better Than Stocks in 2021?

Higher Volatility Means Higher Returns

Historically, cryptocurrencies have had significantly higher levels of volatility than traditional assets such as stocks and phone currencies with this not only benefiting cryptocurrency traders would like to generate high levels of profit, but also benefiting cryptocurrency investors who can benefit from this volatility as well.

While high levels of volatility do lead to high levels of risk sometimes, it is also volatility that leads to greater movements in the price of different cryptocurrencies over comparative periods of time and therefore when comparing them to stocks there is a great potential for being able to generate profit with investments in cryptocurrencies.

While the volatility in the cryptocurrency market has gradually reduced over the past 10 years, it is still significantly higher than the volatility in traditional asset markets and this still presents a significant opportunity for cryptocurrency investors.

Cryptocurrencies Have a Lot of Room to Grow

Another advantage of cryptocurrencies of the stocks is that cryptocurrencies have a lot of room to grow with regards to that prices over the long-term, with the cryptocurrency market only recently reaching $1 trillion in total however with the size of the global stock market being much much larger than this.

This means that as cryptocurrencies become more popular and more commonly traded that the growth in the size of the cryptocurrency market can still continue at an exponential rate and there is still a lot of room to grow throughout the cryptocurrency market.

It is predicted that in the coming years the size of the crypto market balloons significantly as institutional money begins to flow into the market a lot more and as we see issues with the US the and the mainstream financial industry get larger as well.

Bitcoin Halving Constantly Increases Scarcity

While stocks operate on a system where the price of stocks can increase or decrease over time, over the long term the price of Bitcoin continuously increases, with this continuously increasing the price of oil cryptocurrencies as well.

The reason for this is because of a mechanism built into the way the Bitcoin functions known as the halving process, with the supply of Bitcoin that is released to miners each day being cut in half every four years.

Every time the supply of Bitcoin gets cut in half, the scarcity of Bitcoin increases dramatically and over the following 12 to 18 months we see a bull run where the price of Bitcoin and or other cryptocurrencies increases exponentially.

In Summary

Investing in cryptocurrencies is certainly better opportunities and investing in stocks in general in 2021, with the stock market seeing itself being really inflated as a balloon over the past few years with stimulus money throughout their coronavirus pandemic being largely the only thing that was propped up much of the mainstream market.

Comparatively, the enthusiasm for cryptocurrency has never been stronger than is in 2021 and today many institutional organizations such as banks from around the world, PayPal, and even Tesla are investing in cryptocurrencies and investing into their research.

You like to learn more about the three best platforms in the cryptocurrency market for investing in cryptocurrencies, check out PrimeXBT, Binance, and Kraken.