The stock market has been around for ages. And throughout its time, it has been the prime choice of investing for many. However, the cryptocurrency boom had many predicting that the stock market would lose its place at the top. While cryptocurrency has become significantly more popular over the last few years, people still prefer the stock market.
Despite it being very unpredictable, and it’s less than favorable history, people still prefer it over crypto. Today, we’ll be looking at a few reasons as to why people prefer stocks, over the crypto market.
It’s Harder to Gather Research
One of the biggest complaints that people have about the crypto market is that gathering accurate information is difficult. Despite it being around for more than a decade now, it’s still hard to collect relevant information. To be more specific, the stock market has been around for years, and companies associated with it are “real.”
You can dig into the companies that you want to buy stocks from and find out their overall performance history. You can look into their earnings per share, recent earnings, and other metrics that they need to provide to shareholders.
Now compare that to most cryptocurrencies, and its very hard to find this detailed information. Even companies that are soaring at the top of the market barely give you any information that could satisfy you.
It’s not as old
Now, this may be a strange complaint to have about a market that has been around for over a decade. However, compared to the stock market and its companies, they’re just no competition. You can buy stocks for companies that have been in business for over five decades. Some have even been around for over a century.
On the other hand, the oldest crypto available today is Bitcoin, and that started in 2009. Furthermore, crypto is so new that it doesn’t have any regulations for its companies. And that sort of understanding of the market only comes with time, which can then help regulate the market.
Its Significantly More Volatile
The stock market is no stranger to crashing from time to time. In fact, just over the last two decades, the market crashed at least two separate times. Even a company’s share price can plummet in a matter of days following a botched launch. That being said, despite its history, it is still significantly more stable than cryptocurrencies.
The crypto market is famous for its pump-and-dump schemes, where prices can rise and drop in a matter of hours. Not many people have the stomach, or the funds, to deal with a market that can flip upside down in a matter of minutes.
These are the three most common reasons why people are struggling to invest in crypto.