INSUBCONTINENT EXCLUSIVE:
When it comes to investment, people in India generally opt for something where they can avail maximum returns within a specific time frame
and with minimum risks involved
Although there are plenty of conventional investment options such as stocks and bonds, many Indians are slowly but surely warming up to the
idea of cryptocurrencies, a digital form of currency that can be used to exchange value in the future
While the Reserve Bank of India had, in 2018, banned all regulated banks from holding or facilitating cryptocurrency transactions following
reports of digital currency frauds, the Supreme Court struck it down in March 2020.Following the reversal of the ban, Indians seem to be
increasingly looking at cryptocurrency as a viable investment option
But how is it different from traditional options? Let's take a look.Cryptocurrency vs StocksLet's start by discussing the difference between
cryptocurrency and the stock market
Both cryptocurrency and stocks have their good and bad days
However, stocks have a long history that makes it easier for investors to predict the future
Stocks face different kinds of risks including business and financial, market volatility, government regulations among others
However, cryptocurrencies, on the other hand, are a decentralised structure
They don't have a government or a group of people controlling it.Cryptocurrency vs BondsBonds are a loan from a person to a company or a
In other words, when an investor buys bonds, the company or government from where the bonds have been bought is in debt to that person
The investor will get an interest on the amount for a period of time after which the company or the government will pay back the entire
The major risk with bonds is that if the company goes bankrupt, the investor will stop receiving interest payments and even the principal
amount.Cryptocurrency vs ForexForex, also known as foreign exchange, usually attracts investors investing in foreign currencies
Cryptocurrency is a globally accepted form of currency and the investors who opt for foreign exchange also deal globally
But here the catch is the different economic conditions of the countries
Investors can expect positive results from forex only when the economy of the country they are investing in is in a good state
The capital gains for forex can be gauged only on the basis of the economy of the respective country
This makes it riskier as compared to cryptocurrency.Cryptocurrency vs Precious MetalsWe know in today's time, the main reason why people
consider precious metals to invest in, is to buy jewellery and other such items
So, the only value determiner of metals like gold and silver is the market sentiment
Now, let's talk about the risks
The risks involved with investing in precious metals include their portability, import taxes and last, but not least, their need for tight
Whereas, cryptocurrencies, on the other hand, don't need anyone to physically transfer them
Since it is all digital, it makes it comparatively easier for the investor.Cryptocurrency vs Fixed DepositsFixed deposits are supported by
FDs are good when you have a long-term investment plan when you have to wait till maturity
However, those who exit their FDs before they mature, might as well go ahead and invest in cryptocurrency
At least, the market is volatile there and people can make quick decisions
People can exit when they know the market prices are going down while dealing with cryptocurrency
But having said that, no extra effort of mining is required for FDs
Cryptocurrencies need to be mined
They need investors' time and attention
Whereas, for FDs, you can forget it after investment till it gets mature.Although people are much comfortable and aware of the traditional
investment plans, cryptocurrencies are new and can have their own pros and cons
