Investment Option: Real Estate vs Cryptocurrency

Sujan Afi S

Every investment has some sort of risks and both real estate and cryptocurrency are not out of it. Real estate is comparatively an old option for investors to invest in than cryptocurrency.

After the introduction of cryptocurrency many investors get confused between real estate and cryptocurrency, which is best for investment. In this blog we are going to discuss which is better for investment: real estate vs cryptocurrency.

Cryptocurrency as an Option of Investment

Cryptocurrency first launched bitcoin in 2009. The main purpose is to simplify the payment system in online platforms. It plays a significant role as an option of alternative payment system and many investors attract by considering its future opportunity.

Currently there are several types of cryptocurrencies and several investors are successfully able to make a lot of money by investing in cryptocurrency.

Real Estate as an Option of Investment

Real estate investment is comparatively an old option to the investors than cryptocurrency. Many investors considered real estate as a low risk investment because of its tangible nature. You can also get continuous income from real estate through rental income.

Broadly real estate investment options are of two types i.e. commercial real estate and residential real estate. But now there is also an investment option for digital real estate.

Real Estate vs Cryptocurrency

There is a number of differences between the invest option real estate and cryptocurrency, such as

  1. Tangible property: Real estate is a tangible property whereas cryptocurrency is intangible in nature.
  2. Continuous rental income: If you invest in real estate then you have the option to generate steady income from rental income, but in cryptocurrency you have no such steady income generating option.
  3. Volatility of market: The market volatility is more for cryptocurrency than real estate.
  4. Liquidity: You can sell your cryptocurrency any time but selling real estate property is not that easy, which indicates that real estate has less liquidity than cryptocurrency.
  5. Regulating authority: There is no regulating authority for cryptocurrency but there are legal authorities for real estate like RERA.
  6. Fraud activity: Fraud activity is observed as more frequent in cryptocurrency than real estate.
  7. Value appreciation: You can generate income in real estate through value appreciation. The value of the cryptocurrency also has a chance of increasing but it is not like value appreciation of real estate property.
  8. Tax benefits: By investing in real you can also claim for various tax benefits but by investing in cryptocurrency you will not be able to claim tax benefits.
  9. Amount of money required for investment: You can invest a low amount of money in cryptocurrency but in real estate generally you require a good amount of money for investment.
  10. Easy way to invest: it is quite easy to invest in cryptocurrency. You just need to go to an online platform to invest in cryptocurrency. But investing in real estate is not so easy in many cases. You require a lengthy process to invest in real estate.
  11. Security of investment: The overall security of investment for cryptocurrency is generally less than real estate investment.
  12. Maintenance: You will require maintenance of real estate property but in cryptocurrency you don’t require any maintenance.
  13. Level of risk: The overall risk of investment is observed as quite higher in cryptocurrency than real estate.
  14. Loan facility: You can avail loan facility for real estate investment. But for cryptocurrency there is not any loan facility option to the investors.

On a Final Note

The overall analysis indicates that both real estate and cryptocurrency have some advantages and disadvantages. Although the overall risk of investment is observed as quite higher in cryptocurrency than real estate, you also have a chance here to make a lot of money within a short period of time.

As the market volatility is observed to be quite high for cryptocurrency therefore it is strictly advisable that you do not invest most of your money in cryptocurrency. Real estate is comparatively a better option for investment if you want to generate a steady source of income or want to reduce the investment risks.


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