Here's How Cryptocurrency Is Different From Traditional Investing Options

All you need to know to understand the difference between cryptocurrencies and traditional investing options.

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 Stocks

Let'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.