Crypto vs. Stocks: Which Is Better For Investing?

Over the past few years, cryptocurrencies have become a popular and commonly traded asset class. Although the crypto market is still well behind the stock market by size and trade volumes, it has achieved impressive growth in recent years, with many investors increasingly appreciating the unique benefits that this young asset class may deliver. Among these benefits are higher potential returns, with Bitcoin (BTC) having vastly outperformed stocks in recent years; low barriers to entry; diverse choice of assets; and independence from a central controlling authority.

Despite these benefits, many investors are concerned about levels of regulation for both cryptocurrencies and their trade. Having grown accustomed to the tightly regulated stock market, some investors find crypto too risky for their taste. Yet, over the last few years, the levels of regulatory control and oversight applied to cryptocurrency have grown substantially, increasingly blurring the lines between crypto and stocks. 

While cryptocurrencies are still less regulated than traditional asset classes, such as stocks, bonds, commodities and forex, they now operate under a much more defined and rigorous regulatory system that allows more investors — including those who have traditionally stuck with the stock market — to take advantage of crypto's unique benefits.

With crypto becoming increasingly accepted as a viable form of investment, many investors and traders are now wondering if trading cryptocurrencies can provide an edge over trading stocks, or any advantages as an accompaniment to trading stocks. In this article, we look at these two major asset classes of modern finance — crypto and stocks — to help you answer these questions with more clarity.

Key Takeaways: