Cryptocurrency has taken the world by storm, especially during the last few years. After having peaked around $3 trillion in 2021, the total value of all these digital currencies sits at about $1.7 trillion, according to CoinMarketCap.com. Of these, Bitcoin is the most popular, worth more than $800 billion itself. Investors have swarmed to this digital gold rush, often with little knowledge and a lot of hope.
Cryptocurrency’s rapid appreciation has many investors questioning the place of stocks in their portfolios. But there are numerous differences between stocks and cryptocurrencies. The most important is that a stock is an ownership interest in a business (backed by the company’s assets and cash flow), whereas cryptocurrency, in most cases, is not backed by anything at all.
If you’re buying cryptocurrencies, it’s important to understand what you’re purchasing and how they compare to traditional investments such as…
