Are you stuck in the choice between real estate and bitcoin? This is a valid question as land can always be sold but with the volatile nature of bitcoin, it gets confusing. To clear your doubts this blog will explore the pros and cons of investing in both the fields trying to determine which will be the best investment.
Investing in Bitcoins.
Bitcoins, as you must know, are digital currencies that can be purchased from digital exchanges. The bitcoins that you purchase will be kept in safety, protected by a private key. The bitcoins by many governments have been declared as an asset and hence, no income tax is levied. Whereas it subjects the users from capital gains tax just like real estate. Given the legal policies let us look into the other advantages and disadvantages.
- Bitcoin is decentralized as it is not issued through central bodies rather mined.
- Trading bitcoins is easy through digital exchanges, and the bitcoins ATMs are spreading rapidly.
- The blockchain technology offers transparency on the transactions made. As blockchain is a public ledger, it will project your transactions on the cloud network. This is safe as your name will not be used, the transaction that you made. This will provide privacy and safety. Through blockchain, the transactions can be followed to exactly where they go and come from.
- There is only one private key per user, which has to be kept safe with the user by using different useful vaults. There are different kinds of vaults such as cold storages, desktop vaults, paper, and a lot more.
- Bitcoin is encrypted with cryptography hence data can be kept safe within the blocks in the blockchain.
- The volatile market creates a good time for investment and selling off the asset.
- Bitcoins can be used for making daily payments and sent overseas without an exchange rate.
1. If you lose the private key, your bitcoins will be lost in the blockchain technology and no one will be able to access it ever again.
2. If you are keeping your private key in your desktop storage it can still be forked with malware designed to do so. An online wallet can get hacked since the exchanges are not as safe as the technology itself. You can lose the paper where you were storing the key and the cold storage may get destroyed.
3. Bitcoins ATMs will not exchange fiat currencies for you, rather just pay you with bitcoins in printed forms.
4. The volatility of the market often scares the users, as the values can go as high as $11,300 and come down to as low as $150.
But before you invest you will have to look into the market and conduct your research thoroughly. If you want you can use this website Bitcoin Era App and start trading today. This website is user friendly and provides easy navigation. Once you visit you can see the prices of bitcoins and their fractions. Now, we are done discussing bitcoins and let us move on to real estates.
Investing in Real Estates
Real Estate is prone to high investments, but it can also start from as low as $5,000. But there are a few catches to this. You have to make sure that the property that you purchase has proper papers, tax details, and other such requirements. The real estate prices depend on the economic status of a country unlike digital currencies, they are inclined towards fiat currencies.
1. Land can also be sold, be it anywhere on earth.
2. Having land assets saves you from income tax (but so does bitcoins)
3. Use your land and rent your property to earn cash constantly.
4. Real estate investments bring in leverage
5. Build equity and wealth through real estate investments.
1. Sometimes the prices can fall drastically, and it can become hard to sell.
2. Real estate cannot be used to make payments.
3. Renting could get hectic at the time, so there is not a constant cash flow.
When you invest you have to keep in mind the risks and advantages of both the industries. This will help you choose wisely, be it the real estate of bitcoin. Once you have set your mind, just go ahead and do it.
HussaiN is a full-time professional blogger from India. He is passionate about content writing, Tech enthusiast & computer technologies. Apart from content writing on the internet, he likes reading various tech magazines and several other blogs on the internet.