We all know investing is the best way to secure our financial future but finding the right investment vehicle can be challenging. Cryptocurrency has been trending of late but is this where you should be focusing your efforts? We discuss why your investment dollar is better off in real estate than the latest cryptocurrency fad.
The Disadvantages of Cryptocurrency
The original intention for cryptocurrency was to create an alternative currency, which is far from reality. While some online retailers and service providers take cryptocurrency, they are few and far between.
When you attempt to pay with cryptocurrency, what you would be paying today could be significantly more or less than its value tomorrow. A dollar in your country is always worth a dollar. The value of a Bitcoin from day to day is anybody’s guess.
Cryptocurrencies are new to the scene, and many governments are actively legislating against them because transactions are anonymous, making them a haven for transferring funds between criminals. Cryptocurrencies’ long-term viability is also unproven and not even close to being “safe as houses.”
Nobody needs cryptocurrencies, but everybody needs a roof over their heads, making real estate much more predictable and stable as an investment vehicle.
Digital currency values are incredibly volatile and impossible to predict from moment to moment. It’s common for values to tumble and wipe tens of thousands and even millions of dollars in value off a portfolio in a matter of minutes. For example, when China outlawed cryptocurrency mining, it wiped out more than $1.8 trillion of value from the world’s cryptocurrencies.
Digital currencies like Bitcoin are untraceable, and your investment is linked to an encrypted file on a fallible digital storage medium. Should your hard drive fail, you accidentally throw it in the bin during spring cleaning, or you lose your Bitcoin password, your fortune is forever lost. According to reports, the value of ‘lost’ Bitcoins in 2021 exceeded $148 billion. You are unlikely to misplace a house, but, unlike crypto, you can insure them against loss through fire and flood.
Advantages of Real Estate Over Crypto
While you can make a fortune in crypto just by buying at the right time, there’s as much risk you could lose it all. You may have to hold onto your real estate for a while, but there’s a lot more certainty that your property will be worth significantly more when it’s time to sell.
Properties never lose their value overnight, but you can lose your shirt with digital coin in a matter of minutes. The cryptocurrency marketplace is incredibly sensitive to investment activity. Should you want to liquidate your entire fortune, your activity could trigger a significant drop in value, making it difficult to recoup your gains. When you sell a property, you can be reasonably sure a professional agent will be able to get you fair market value.
Cryptocurrency investment shares many similarities with gambling, with big wins, even bigger losses, and very little in between. As an investment, it is perhaps the most unreliable and unpredictable strategy to date. Don’t risk your financial future to a cryptocurrency that may not exist in a few years and comes with zero protection. Investing in real estate requires a few more hoops to jump through, but in the end, you will still have your shirt and a comfortable retirement to look forward to. Find out how you can get into real estate investing without the hassle by talking to the property experts today.
Lea and Lefry Amarille are real estate investors. They have been actively involved in the GTA and Durham Regio for a number of years. Their mission is to provide great quality homes for tenants, while at the same time providing an above-average return on investment (R.O.I) for their investor partners and themselves. It is truly a win-win-win way of investing!
Lea and Lefry offer their investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Lea and Lefry.
For more information about Lea and Lefry and their investment program,
please call (416) 827-0586 or visit https://investorleaandlef.com/