For decades investors had been interested in the stock market as their money would get doubled and tripled within a few months. There are even facts about the Wall Street brokers taking home meager gains of around 5% to 8% every year. Therefore, many people became proponents of the stock market investment.
Surprisingly, the past few years’ cryptocurrency markets have revolutionized the trading penchant. It includes all kinds of digital currencies like Bitcoin, Etherum, Litecoin, and more. The news is revealing that Bitcoin has actually dwarfed the profits traders made when they bought stocks. They experienced that instead of doubling or tripling their money within a few months they can do it in a few weeks.
For those Australian investors still not clear on why to invest in cryptocurrency, then below are some valuable reasons why to buy bitcoins Australia instead of stock.
Value investing perspective – Bitcoin vs. Stock
Cryptocurrency is a comparatively new market, so there is an involvement of few professional traders, which indicates fewer experts that prompts less competition and so more profit share for you. In stock trading, you need to regularly struggle with competition. From multiple computers screen monitoring to high-speed trade algorithms to insider information from share bazar…..it means you need to compete with the best!
In Bitcoin, you will be trading against ignorant teenagers or college flunkies. They trade Bitcoin in their spare time or to use crypto to buy drugs. There are few good traders, so competition is less.
No involvement of banks
Banks invest a lot in the market using a strategy called ‘pump and dump’. They have billions and billions of dollars, so they invest it and manipulate the market. They place lots and lots of orders and drive the stock price. For some months, they ride it and suddenly sell all the lot. The y cash with big profit margin, while the other investors generally novice & less-experienced traders], holding stocks with a hope its price will increase more or the ones who bought a position late lose all their money.
Such a situation is virtually impossible with Bitcoin. Banks are taking steps to enter the crypto market and take over like the share bazar but will take them 8 to10 years. For massive institutions [like banks] to change and develop in a new market will take some time but you can start trading crypto professionally with a little knowledge.
Bitcoin is extremely volatile
For intraday traders’ high volatility is appealing. In Bitcoin trading, the prices can experience a 20% increase the next day. The crypto market in its initial phase and there is a lot of progress expected. Plenty of new traders are getting abroad. It all equates to an increase in volatility, which can reach 50% in one day. In the stock market, there is the volatility of only 3% to 5%, whereas in trading Bitcoin the prices can go up or down by 10% to 15% in a single day. Thus, traders can leverage their resources and create wealth.
Bitcoin is self-regulating meaning highly resistant to bad leadership and corruption. Market capitalization is hardly 1% as it is in its first phase. A new investing idea in this rapid world-changing era will empower underdeveloped countries to decrease their poverty. Grab this opportunity and invest in Bitcoin as soon as possible!