Bitcoin has always remained a top-notch cryptocurrency for most crypto traders, ever since it made its beginning on 3rd January 2009. If you follow the Cryptoknowmics website, then you will know about the richest Bitcoin millionaire list which also including Akshay Haldipur from India. Now call it a trust or rising fame that made these people think to invest in Bitcoin. The latter digital currency has been the favourite choice among the traders for its selling, buying, and trading on major cryptocurrency exchanges like Binance, Cex.io, Bittrex, Coinbase, Kraken, and more. However, there is also another popular option where people invest in. It is mutual funds. So today, I am going to point out the difference between these two investment entities. Let us begin with:
Although, Bitcoin is now a popular name in this new digital era. This is why people invest in Bitcoin. But to know how it is different from mutual funds, I need to brief you about the concept of cryptocurrencies since Bitcoin is a stepping stone of this technology. Cryptocurrencies are also popularly called as digital currencies holding monetary value. If you glance at the whitepaper of Bitcoin, then you will find that it does not fall under any control of central authorities like banks or government. This sets cryptocurrencies apart from traditional currencies.
Bitcoin is the underlying factor behind the infamous cryptocurrency wave around the world. It is the foremost cryptocurrency founded by a pseudonym developer and founder, Satoshi Nakamoto, functioning for 11 years. So now it has become a decades-old currency, but people are still interested to do the investment in Bitcoins.
When cryptocurrency became a global success, soon, many more alternate currencies started following after Bitcoin. These are famously called as ‘Altcoins’ means the coins that pose an alternative option to the latter crypto coin. Some of the major names included in these categories are Ethereum, Litecoin, Dash, Neo, Tron, etc.
Apart from knowing about how to invest in Bitcoin, many new crypto enthusiasts also search for how or where to store it. So the answer is cold storage. It is the hardware of your computing device. Another option is hot storage. In comparison to both, cold storage is the much better safer option, as there is always a possible risk of losing token due to theft on hot storage.
Know About Mutual Funds
Beginning with Bitcoin, I briefly introduced you to cryptocurrencies and Bitcoin. Due to worldwide popularity, people from all around the world take interest to invest in Bitcoin. But mutual funds are also a popular option for investment. A fund manager has the sole responsibility to ensure the better ways of money to be invested in, and possibilities to generate profits. Unlike Bitcoin, there is interference from the government at the time of taxation of returns. Such regulations are monitored by many sections.
Which Is The Better Investment Option; Bitcoin or Mutual Funds?
Now, here comes the main subject of my blog, stating whether to invest in Bitcoin or Mutual funds? This question lies in the matter of whether you are an experienced person who is well aware of the cryptocurrency market or just has begun purchasing. The objective of investing in Bitcoin or mutual is poles apart.
There is always a link between the demand and supply and crypto coin market. Changes that happen have a close impact on each other. Another factor is legality, fame, and what will be its stature in the coming time. On the other side, on mutual funds, it all depends upon the outcome of any specific resource form, where investing is done. The complete outcome is also calculated on the results of previous years, major holdings, and duration.
Another reason for choosing either investment options is having risk-taking capabilities. If you are a senior citizen, who is keen to invest in usual schemes of income, then don’t invest in Bitcoin. It won’t suit you. Contrary to it, if you are not comfortable in taking the risk and want to experience investment in schemes with good returns, then mutual funds come as the best investment option. It will result in better returns amount if investment stays for a long time.
Both are better options in their own specific ways. However, you should be capable enough to take the risks to invest in Bitcoin or mutual funds.
If you invest in Bitcoin, then it would pave you with returns of a higher level. But you should be aware of the unpredictability of cryptocurrency. However, you can bet on Bitcoin or even its closest competitor crypto coin, Ethereum. These coins are best in terms of being stable in the cryptocurrency market. In India, mutual funds are equivalent to being a popular investment option other than cryptocurrency. It does have its ups and downs feature. But when it comes to transparency, it excels over BTC. According to experts, mutual funds can fetch much longer returns, having more stability and constant growth in the value of a fund.