Cryptocurrency vs Real Estate
When you hear investment the first two words you are bound to hear are Real Estate and Cryptocurrency, there is a reason why these two tend to stand out everytime the word investment is mentioned.
The truth is both have been proven to be a very good investment choice but there are some pros and cons attached to them. If you are looking to know which is best you invest in, it would be best to talk to your financial advisor.
What is Real Estate Investment?
Real estate investment is the purchase, management and sale or rental of real estate with the intent to make profit whether immediate or on the long run. Real Estate has a great track record of price appreciation. Take, for example, the prices of houses in Nigeria in 2015 have seen a great appreciation in 2022.
Prices of Flats per region in 2022
Prices of Houses per region in 2022
This is a great feat for an investment.
Pros of Real Estate Investment
- Steady cash flow
- Long term security
- Tax advantage
- Protection against inflation
Cons of Real Estate
- High maintenance
- Capital insensitive
- Not liquid
Recommended Reading: How to increase the ROI of your property
What is Cryptocurrency investment?
Cryptocurrency, the most popular of which is bitcoin, is one of the newest investment options available. It is backed through blockchain technology, Bitcoin is touted as an immutable currency. These digital currencies act as a medium of exchange globally as an alternative to money.
Cryptocurrency had its incredible run in 2021, with Bitcoin hitting all-time highs of around $68,000 in November, Bitcoin is indeed getting the attention it deserves.
Bitcoin five year price chart
As more people set their eyes on digital assets as another possible investment, their popularity might grow further. Moreover, cryptocurrencies such as Bitcoin have a lower entry barrier when compared to real estate. This allows the average investor who does not have a lot of capital to spare to start his investment journey.
Cryptocurrency is relatively new, there’s not enough data to really calculate its value. As recent price fluctuations show, the market is volatile. You could easily lose everything you invest, so the decision of whether or not to get involved with bitcoin really comes down to how much you are willing to risk.
Pros of investing in Cryptocurrency
- Transactional Freedom
- Easy to trade
- Low maintenance
Cons of investing in Cryptocurrency
- Not a tangible asset.
- Security issues.
- Little/no government involvement.
- High risk.
Real Estate vs Cryptocurrency: Which investment is better?
Investing in cryptocurrency is high risk and low maintenance with a big reward potential, while real estate is a long term investment that could very much lead to a big payout in future and can provide steady income