🕷️ Crawler Inspector

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Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 148 (from laksa040)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa148.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical, ml_categories_json AS ml_categories_json, ml_types_json AS ml_types_json, ml_intent_types_json AS ml_intent_types_json, meta_language AS meta_language, attrs_author AS attrs_author, ifNull(toUnixTimestamp(attrs_publish_time), 0) AS attrs_publish_time, ifNull(toUnixTimestamp(attrs_original_publish_time), 0) AS attrs_original_publish_time, ifNull(attrs_is_republished, 0) AS attrs_is_republished, ifNull(attrs_nr_words, 0) AS attrs_nr_words, ifNull(attrs_boilerpipe_nr_words, 0) AS attrs_boilerpipe_nr_words, ifNull(body_ext_links_number, 0) AS body_ext_links_number, ifNull(body_int_links_number, 0) AS body_int_links_number, ifNull(meta_nofollow, 0) AS meta_nofollow, ifNull(meta_noarchive, 0) AS meta_noarchive, ifNull(props_was_rendered, 0) AS props_was_rendered, ifNull(src_redirect, \'\') AS src_redirect, ifNull(download_time_msec, 0) AS download_time_msec, ifNull(download_ttfb_msec, 0) AS download_ttfb_msec, ifNull(download_size, 0) AS download_size FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.bankrate.com/investing/crypto-vs-stocks/\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.bankrate.com/investing/crypto-vs-stocks/\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/","crawl_time":1776936901,"first_indexed_time":1634927474,"http_code":200,"src_unparsed":"com,bankrate!www,\/investing\/crypto-vs-stocks\/ s443","src_root_hash":"16841441868536461148","history_drop_reason":null,"meta_title":"Cryptocurrency Vs. Stocks: Which Is The Better Choice For You? | Bankrate","meta_descriptions":["Crypto’s rapid rise has investors questioning the role of stocks in their portfolios. Learn from Bankrate the difference between stocks and crypto.","Crypto’s rapid rise has investors questioning the role of stocks in their portfolios. Learn from Bankrate the difference between stocks and crypto."],"attrs_boilerpipe_text":"Cryptocurrency’s rapid appreciation has many investors questioning the place of stocks in their portfolios. But there are numerous differences between stocks and\ncryptocurrencies\n. The most important is that a stock is an ownership interest in a business (backed by the company’s assets and cash flow), whereas cryptocurrency, in most cases, is not backed by anything at all.\nIf you’re buying cryptocurrencies, it’s important to understand what you’re purchasing and how they compare to traditional investments such as stocks, which have a solid long-term track record.\nCryptocurrency vs. stocks: How they compare\nAny savvy investor needs to know exactly what they’re investing in. It’s crucial to weigh the risks and rewards of investing, and what will drive the investment’s success. If they don’t have this kind of information, they can’t make the calculation. In this case, it’s more like gambling than investing.\nHere are the key things investors need to know about stocks and cryptocurrency.\nStocks\nA stock is a fractional ownership interest in a business. It’s easy to lose sight of this, if you become overwhelmed by the wiggling stock prices — and the potential for profit. As a legal ownership stake in the business, the stock gives shareholders a claim on the assets and cash flow of the business. These back your investment and provide a basis for its valuation.\nWhy stocks rise and fall\nA stock price moves as investors assess the future success of the company. While investors may become overly optimistic about the stock in the short term, the stock price ultimately depends on the company’s ability to grow its profits over the long term. That is, a stock rises in the long term\ndue to the success of the underlying company\n.\nFor a stock to be a successful investment, the underlying company must perform well over time. (Here’s a\nstep-by-step guide on how to invest in stocks\n.)\nCryptocurrency\nCryptocurrency has taken the world by storm, especially during the last few years. After having topped out around $3 trillion in 2021 and falling in 2022, the total value of all these digital currencies now sits at about $3.4 trillion as of July 2025, according to CoinMarketCap.com. Of these,\nBitcoin\nis the most popular, worth more than $2.1 trillion itself. Investors have swarmed to this digital gold rush, often with little knowledge and a lot of hope.\nGenerally, cryptocurrency is backed by no hard assets (specialized\nstablecoins\nbeing an exception), and that’s the case for the\nmost popular crypto coins\nsuch as Bitcoin and\nEthereum\n. A cryptocurrency may allow you to perform certain functions, such as sending money to another person or using smart contracts that automatically execute after specific conditions are met.\nWhy cryptocurrencies rise and fall\nBecause cryptocurrency is not backed by assets or cash flow, the only thing moving crypto prices is speculation driven by sentiment. As sentiment changes, prices shift — sometimes drastically. So cryptocurrency is driven only by the hope that someone will buy it for more in the future — what’s called the “greater fool theory of investing.”\nFor a cryptocurrency to be a successful investment, you must get someone to buy it from you for more than you paid for it. That is, the market must be more optimistic about it than you are.\nPros and cons of investing in cryptocurrency vs. stocks\nPros of investing in cryptocurrency\nPossible hedge against fiat currency:\nFor some investors, one of the biggest appeals of cryptocurrency is its decentralized nature. It’s not controlled by central banks or governments who like to print money and generate inflation in fiat currencies such as the U.S. dollar or the euro. Cryptocurrency has been called “digital gold” by some investors who hold it because they think it will protect them from inflation.\nPotential for outsized returns:\nBuying cryptocurrencies creates the potential for large gains on your investment. Several cryptocurrencies have seen their prices skyrocket since first being introduced. These gains are the main reason people are attracted to cryptocurrencies, but the potential for price appreciation comes with significant risk.\nGrowing number of coins:\nIn the early days of cryptocurrencies, there were just a few coins that could be invested in, but speculative interest has changed that.\nNew coins are introduced regularly\nand there are now thousands to choose from.\nWide interest in digital currencies:\nThere seems to be a growing interest in cryptocurrencies from investors, companies and governments. Tesla holds Bitcoin on its balance sheet and briefly accepted the digital currency as payment before reversing course. El Salvador adopted Bitcoin as legal tender in 2021, though the International Monetary Fund has urged the country to reverse its decision. Increasing acceptance of digital currencies could be positive for investors.\nPossible hedge against fiat currency:\nFor some investors, one of the biggest appeals of cryptocurrency is its decentralized nature. It’s not controlled by central banks or governments who like to print money and generate inflation in fiat currencies such as the U.S. dollar or the euro. Cryptocurrency has been called “digital gold” by some investors who hold it because they think it will protect them from inflation.\nPotential for outsized returns:\nBuying cryptocurrencies creates the potential for large gains on your investment. Several cryptocurrencies have seen their prices skyrocket since first being introduced. These gains are the main reason people are attracted to cryptocurrencies, but the potential for price appreciation comes with significant risk.\nGrowing number of coins:\nIn the early days of cryptocurrencies, there were just a few coins that could be invested in, but speculative interest has changed that.\nNew coins are introduced regularly\nand there are now thousands to choose from.\nWide interest in digital currencies:\nThere seems to be a growing interest in cryptocurrencies from investors, companies and governments. Tesla holds Bitcoin on its balance sheet and briefly accepted the digital currency as payment before reversing course. El Salvador adopted Bitcoin as legal tender in 2021, though the International Monetary Fund has urged the country to reverse its decision. Increasing acceptance of digital currencies could be positive for investors.\nCons of investing in cryptocurrency\nExtreme volatility:\nCryptocurrencies have been extremely volatile so far in their relatively young existence. They aren’t backed by anything, so the price they trade at is determined by the whims of traders. Fortunes can be made and lost quickly and there’s no telling where a coin might trade next.\nCybersecurity risks:\nDespite cryptocurrency enthusiasts touting the security benefits of digital coins, there have been notable hacks involving cryptocurrencies. It is often difficult to recover stolen funds.\nNo intrinsic value:\nCryptocurrencies have no intrinsic value, which means they aren’t backed by underlying assets or earnings the way that stocks are. Stocks have value because of their future earnings power and what they will return for their owners, while cryptocurrencies offer nothing of the sort.\nRegulatory risks:\nWhile El Salvador has embraced Bitcoin, many governments are much more skeptical about cryptocurrencies. China has banned them altogether, other countries could follow and the\nU.S. is regulating them\n, though President-elect Trump is expected to have a crypto-friendly administration.\nExtreme volatility:\nCryptocurrencies have been extremely volatile so far in their relatively young existence. They aren’t backed by anything, so the price they trade at is determined by the whims of traders. Fortunes can be made and lost quickly and there’s no telling where a coin might trade next.\nCybersecurity risks:\nDespite cryptocurrency enthusiasts touting the security benefits of digital coins, there have been notable hacks involving cryptocurrencies. It is often difficult to recover stolen funds.\nNo intrinsic value:\nCryptocurrencies have no intrinsic value, which means they aren’t backed by underlying assets or earnings the way that stocks are. Stocks have value because of their future earnings power and what they will return for their owners, while cryptocurrencies offer nothing of the sort.\nRegulatory risks:\nWhile El Salvador has embraced Bitcoin, many governments are much more skeptical about cryptocurrencies. China has banned them altogether, other countries could follow and the\nU.S. is regulating them\n, though President-elect Trump is expected to have a crypto-friendly administration.\nPros of investing in stocks\nLong history of solid returns:\n Stocks have a long track record of producing solid investment returns, with the S&P 500 stock index returning about 10 percent over the long-term. Though \nstocks can be volatile\n in the short term, they have generally been safe to hold over long periods of time.\nHave intrinsic value:\n A stock represents an ownership interest in a company and its value over time depends on the success of the underlying company. Companies own assets that produce earnings and cash flow for investors, creating what’s known as intrinsic value.\nAccessible:\n It is easier than ever to invest in stocks these days with many \nonline brokers\n cutting trading fees to zero. You can invest in individual stocks or choose to purchase a diversified basket of stocks through an index fund. Index funds help keep costs low and you can build a diversified portfolio even if you don’t have much money to start with.\nStronger regulation:\n Stock exchanges, brokers and companies are all heavily regulated through various government agencies. Companies are required to \nprovide certain information to investors\n through the Securities and Exchange Commission. No regulatory body is perfect, but stocks have been around for a long time and there are certain important investor protections in place.\nCons of investing in stocks\nVolatile:\n When you hold a broad basket of stocks through \nindex funds\n, stocks are less volatile than cryptocurrencies. Individual stocks can be more volatile, but typically less so than cryptocurrencies. Because of this volatility, stocks are best held as part of a long-term investment plan, so you have time to recover from any short-term losses.\nLower potential for extreme gains:\n Broad stock indexes such as the \nS&P 500\n likely have less potential for the extreme gains that can sometimes be found among cryptocurrencies. Stocks have returned about 10 percent per year over the long term, whereas it’s not uncommon for cryptocurrencies to move 10 percent in a single day.\nOther considerations when investing in stocks vs. crypto\nTime horizon\nYour time horizon — when you need the money from an investment — is a key criterion. The shorter your timeline, the safer your asset should be, so that it’s there when you need it. The more volatile an asset, the less suited it is for those with a short timeline. Generally, experts suggest investors in risky assets such as stocks need at least three years to ride out volatility.\nStocks\nStocks are often volatile, but they tend to be less volatile than crypto. Individual stocks are more volatile than a portfolio of stocks, which tends to benefit from\ndiversification\n.\nStocks are better suited to investors who can leave their money alone and don’t need to access it. Generally, the longer you can leave it invested, the better.\nSome stocks can be more volatile than others. For example, growth stocks tend to fluctuate much more than value stocks or\ndividend stocks\n.\nInvestors may shift from more aggressive stocks (growth stocks) to safer ones (dividend stocks) as they need to tap their money, such as when they approach retirement.\nCryptocurrency\nWhile stocks are volatile, cryptocurrency is ridiculously volatile. For example, during 2021, Bitcoin lost more than half its value in a few months and later gained 100 percent. Such volatility makes crypto unsuited for short-term investors.\nCrypto is better suited to traders who can leave their money tied up and wait for it to recover. Think years rather than weeks.\nPortfolio management\nAs you’re thinking about constructing your portfolio, you don’t have to make an either-or choice between cryptocurrency and stocks — or other kinds of asset such as\nbonds\nor funds, either. It’s all about weighting your portfolio in a way that fits your risk and time horizon.\nCryptocurrency\nGiven its inherent risks, cryptocurrency works better with a small allocation in your overall portfolio. Think 5 percent or less.\nEven a small allocation could do wonders for your portfolio if cryptocurrency really takes off. Also, limiting to a small allocation protects you against a complete loss if crypto prices collapse.\nIf crypto grows to be a significant portion of your portfolio, you can re-allocate more of your money to stocks to lower your portfolio’s overall risk.\nStocks\nGiven stocks’ strong long-term record, a diversified collection of stocks should make up the majority of your portfolio, especially if you have decades until you need to tap it.\nIf you’re investing in individual stocks, you’ll need to research your stocks carefully to achieve good returns.\nIf you’re investing in funds, you can buy a broadly diversified fund such as\nan S&P 500 index fund\nwithout significant research and enjoy the potential for high returns.\nWhich is safer, stocks or crypto?\nWhen it comes to safety, both stocks and cryptocurrencies present their unique set of risks. Stocks, backed by a company’s assets and cash flow, have a long history of delivering solid returns. They are regulated by government bodies and have investor protections in place. However, market volatility, business decisions, and international events can impact stock investments.\nOn the other hand, cryptocurrencies, while offering the potential for substantial gains, are highly volatile and lack the backing of tangible assets. They also pose risks such as cybersecurity threats and regulatory uncertainties. Therefore, the safety of these investments largely depends on your personal risk tolerance and financial goals.\nA broadly diversified stock portfolio generally presents a safer option than cryptocurrencies because of their intrinsic value and history of delivering solid long-term returns. Cryptocurrencies may hold greater potential for outsized gains, but come with significant risk.\nBottom line\nSome cryptocurrencies have soared in price since being introduced over the past few years, but investors need to understand what they’re investing in, instead of just rushing in because other traders are, a symptom of FOMO syndrome (fear of missing out). If you decide to take a stake in crypto, consider how it fits with your own risk tolerance and financial needs. Investors can earn good returns without investing in cryptocurrency, and some investors, including legends such as\nWarren Buffett, won’t touch cryptocurrency\n.\n—\nBankrate’s\nBrian Baker, CFA\n, contributed to an update of this article.\nEditorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.\nDid you find this page helpful?\nInfo Icon\nHelp us improve our content","attrs_markdown":"[Skip to Main Content](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#main-content)\n\n- [Banking](https:\/\/www.bankrate.com\/banking\/)\n  All\n  \n  Banking\n  \n  Checking & savings\n  \n  CDs\n  \n  Money market\n  \n  Banks\n  \n  [Explore all banking resources](https:\/\/www.bankrate.com\/banking\/)\n  \n  Banking\n  \n  Compare accounts\n  \n  - [Best high-yield savings accounts](https:\/\/www.bankrate.com\/banking\/savings\/best-high-yield-interests-savings-accounts\/)\n  - [Best checking accounts](https:\/\/www.bankrate.com\/banking\/checking\/best-checking-accounts\/)\n  - [Best free checking accounts](https:\/\/www.bankrate.com\/banking\/checking\/best-free-checking-accounts\/)\n  \n  Get guidance\n  \n  - [Savings calculator](https:\/\/www.bankrate.com\/banking\/savings\/simple-savings-calculator\/)\n  - 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[![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/3d6f458d84\/how-to-start-investing-nav-imagery.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) How to start investing 7 min read](https:\/\/www.bankrate.com\/investing\/how-to-start-investing\/)\n  \n  Compare plans\n  \n  - [Best retirement plans](https:\/\/www.bankrate.com\/retirement\/best-retirement-plans\/)\n  - [Best IRA accounts](https:\/\/www.bankrate.com\/retirement\/best-ira-accounts\/)\n  - [Best Roth IRA accounts](https:\/\/www.bankrate.com\/investing\/best-roth-ira\/)\n  - [Best 401(k) rollover options](https:\/\/www.bankrate.com\/retirement\/best-places-to-rollover-401k\/)\n  \n  Get guidance\n  \n  - [401(k) calculator](https:\/\/www.bankrate.com\/retirement\/401-k-calculator\/)\n  - [Retirement plan calculator](https:\/\/www.bankrate.com\/retirement\/retirement-plan-calculator\/)\n  - [Roth IRA calculator](https:\/\/www.bankrate.com\/retirement\/roth-ira-plan-calculator\/)\n  - [All retirement calculators](https:\/\/www.bankrate.com\/retirement\/calculators\/)\n  - [Retirement resources](https:\/\/www.bankrate.com\/retirement\/)\n  \n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/59a3f533a8\/best-worst-states-for-retirement-nav-imagery.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) Best & worst states for retirement 6 min read](https:\/\/www.bankrate.com\/retirement\/best-and-worst-states-for-retirement\/)\n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/a6b1dc15ca\/how-to-save-for-retirement-nav-imagery.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) How to save for retirement 15 min read](https:\/\/www.bankrate.com\/retirement\/how-to-save-for-retirement\/)\n  \n  Finding an advisor\n  \n  - [Find a financial advisor](https:\/\/www.bankrate.com\/investing\/financial-advisors\/financial-advisor-matching\/)\n  - [Best financial advisors](https:\/\/www.bankrate.com\/investing\/financial-advisors\/best-financial-advisors\/)\n  - [How to choose a financial advisor](https:\/\/www.bankrate.com\/investing\/financial-advisors\/how-to-choose-a-financial-advisor\/)\n  - [Financial planner vs advisor](https:\/\/www.bankrate.com\/investing\/financial-advisors\/financial-advisor-vs-financial-planner\/)\n  \n  Get guidance\n  \n  - [What is financial planning?](https:\/\/www.bankrate.com\/investing\/financial-advisors\/what-is-financial-planning\/)\n  - [What is a fiduciary?](https:\/\/www.bankrate.com\/investing\/financial-advisors\/what-is-a-fiduciary\/)\n  - [What is a CFP?](https:\/\/www.bankrate.com\/investing\/financial-advisors\/what-is-a-certified-financial-planner\/)\n  - [What is wealth management?](https:\/\/www.bankrate.com\/investing\/financial-advisors\/what-is-wealth-management\/)\n  - [Financial advisor resources](https:\/\/www.bankrate.com\/investing\/financial-advisors\/)\n  \n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/1cdbf65950\/what-is-wealth-management-s.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) When to get an advisor 4 min read](https:\/\/www.bankrate.com\/investing\/financial-advisors\/when-to-get-a-financial-advisor\/)\n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/38750a2d5a\/what-is-a-certified-financial-planner-s.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) Pros & cons of financial advising 7 min read](https:\/\/www.bankrate.com\/investing\/financial-advisors\/pros-cons-financial-advisor\/)\n  \n  [Explore all investing resources](https:\/\/www.bankrate.com\/investing\/)\n- [Credit cards](https:\/\/www.bankrate.com\/credit-cards\/)\n  All\n  \n  Credit cards\n  \n  Cards by category\n  \n  Cards by credit\n  \n  Tools & reviews\n  \n  Guides & resources\n  \n  [Explore all credit cards resources](https:\/\/www.bankrate.com\/credit-cards\/)\n  \n  Credit cards\n  \n  Compare cards\n  \n  - [Best cards of 2026](https:\/\/www.bankrate.com\/credit-cards\/best-credit-cards\/)\n  - [Best cash back cards](https:\/\/www.bankrate.com\/credit-cards\/cash-back\/best-cash-back-cards\/)\n  - [Best balance transfer cards](https:\/\/www.bankrate.com\/credit-cards\/balance-transfer\/best-balance-transfer-cards\/)\n  - [Best 0% APR cards](https:\/\/www.bankrate.com\/credit-cards\/zero-interest\/best-zero-interest-cards\/)\n  - [Best travel cards](https:\/\/www.bankrate.com\/credit-cards\/travel\/best-travel-cards\/)\n  - [Best rewards cards](https:\/\/www.bankrate.com\/credit-cards\/rewards\/best-rewards-cards\/)\n  - [Best business cards](https:\/\/www.bankrate.com\/credit-cards\/business\/best-business-cards\/)\n  - [Best sign up bonus cards](https:\/\/www.bankrate.com\/credit-cards\/rewards\/best-bonus-offer-cards\/)\n  \n  Find my matches\n  \n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/4f02ac6944\/cardmatch-nav-imagery.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) CardMatch™ Get personalized card recommendations](https:\/\/www.bankrate.com\/credit-cards\/tools\/cardmatch\/)\n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/10ad7295ae\/card-comparison-tool-nav-imagery.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) Card comparison tool Compare credit cards side-by-side](https:\/\/www.bankrate.com\/credit-cards\/tools\/compare\/)\n  \n  See your card matches\n  \n  Answer a few quick questions and we’ll show you your top credit card options.\n  \n  [Find my matches](https:\/\/www.bankrate.com\/credit-cards\/tools\/cardmatch\/)\n  \n  Compare cards\n  \n  - [Excellent credit](https:\/\/www.bankrate.com\/credit-cards\/rewards\/best-for-excellent-credit\/)\n  - [Good credit](https:\/\/www.bankrate.com\/credit-cards\/building-credit\/best-for-good-credit\/)\n  - [Fair credit](https:\/\/www.bankrate.com\/credit-cards\/building-credit\/best-for-fair-credit\/)\n  - [Bad credit](https:\/\/www.bankrate.com\/credit-cards\/bad-credit\/best-for-bad-credit\/)\n  \n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/2e8651b174\/how-to-build-credit-nav-imagery.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) How to build credit 7 min read](https:\/\/www.bankrate.com\/personal-finance\/credit\/how-to-build-credit-fast\/)\n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/5a53191033\/best-cards-for-building-credit-nav-imagery.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) Best cards for building credit Find out which credit cards could help](https:\/\/www.bankrate.com\/credit-cards\/building-credit\/best-for-no-credit-history\/)\n  \n  See what the experts say\n  \n  Read in-depth credit card reviews to find out which cards have the best perks and more.\n  \n  [Read card reviews](https:\/\/www.bankrate.com\/credit-cards\/reviews\/)\n  \n  Get guidance\n  \n  - [Credit card payoff calculator](https:\/\/www.bankrate.com\/credit-cards\/tools\/credit-card-payoff-calculator\/)\n  - [Balance transfer calculator](https:\/\/www.bankrate.com\/credit-cards\/tools\/credit-card-balance-transfer-calculator\/)\n  - [Credit utilization calculator](https:\/\/www.bankrate.com\/credit-cards\/tools\/credit-utilization-calculator\/)\n  - [Points and miles calculator](https:\/\/www.bankrate.com\/credit-cards\/tools\/points-and-miles-calculator\/)\n  - [All credit card calculators](https:\/\/www.bankrate.com\/credit-cards\/tools\/)\n  \n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/43548bf9cd\/spender-type-tool-nav-imagery.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) Spender type tool Find cards that fit your needs](https:\/\/www.bankrate.com\/credit-cards\/tools\/spender-type-tool\/)\n  \n  Get advice\n  \n  - [Credit cards 101](https:\/\/www.bankrate.com\/credit-cards\/advice\/)\n  - [Balance transfer advice](https:\/\/www.bankrate.com\/credit-cards\/balance-transfer\/)\n  - [Zero interest credit cards](https:\/\/www.bankrate.com\/credit-cards\/zero-interest\/)\n  - [Rewards credit card advice](https:\/\/www.bankrate.com\/credit-cards\/rewards\/)\n  - [Cash back credit card advice](https:\/\/www.bankrate.com\/credit-cards\/cash-back\/)\n  - [Travel credit card advice](https:\/\/www.bankrate.com\/credit-cards\/travel\/)\n  - [Business credit card advice](https:\/\/www.bankrate.com\/credit-cards\/business\/)\n  \n  Build credit\n  \n  - [Advice for bad credit](https:\/\/www.bankrate.com\/credit-cards\/bad-credit\/)\n  - [Rebuilding credit score](https:\/\/www.bankrate.com\/credit-cards\/building-credit\/)\n  \n  [Explore all credit cards resources](https:\/\/www.bankrate.com\/credit-cards\/)\n- [Loans](https:\/\/www.bankrate.com\/loans\/)\n  All\n  \n  Loans\n  \n  Personal loans\n  \n  Auto loans\n  \n  Student loans\n  \n  Small business loans\n  \n  [Explore all loans resources](https:\/\/www.bankrate.com\/loans\/)\n  \n  Loans\n  \n  Compare lenders\n  \n  - [Best personal loans](https:\/\/www.bankrate.com\/loans\/personal-loans\/rates\/)\n  - [Best personal loans for bad credit](https:\/\/www.bankrate.com\/loans\/personal-loans\/bad-credit-loans\/)\n  - [Best debt consolidation loans](https:\/\/www.bankrate.com\/loans\/personal-loans\/debt-consolidation-loans\/)\n  - [Best home improvement loans](https:\/\/www.bankrate.com\/loans\/home-improvement\/rates\/)\n  \n  Get guidance\n  \n  - [Personal loan resources](https:\/\/www.bankrate.com\/loans\/personal-loans\/)\n  - [Personal loan lender reviews](https:\/\/www.bankrate.com\/loans\/personal-loans\/reviews\/)\n  - [Personal loans calculator](https:\/\/www.bankrate.com\/loans\/personal-loans\/personal-loan-calculator\/)\n  - [Average personal loan interest rates](https:\/\/www.bankrate.com\/loans\/personal-loans\/average-personal-loan-rates\/)\n  \n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/38750a2d5a\/what-is-a-certified-financial-planner-s.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) Personal loan basics 9 min read](https:\/\/www.bankrate.com\/loans\/personal-loans\/what-is-a-personal-loan\/)\n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/4c26764452\/how-to-start-saving.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) How to get a personal loan 11 min read](https:\/\/www.bankrate.com\/loans\/personal-loans\/how-to-get-personal-loan\/)\n  \n  Compare lenders\n  \n  - [Best auto loans](https:\/\/www.bankrate.com\/loans\/auto-loans\/rates\/)\n  - [Best auto loan refinance rates](https:\/\/www.bankrate.com\/loans\/auto-loans\/refinance-rates\/)\n  - [Best car loans for bad credit](https:\/\/www.bankrate.com\/loans\/auto-loans\/bad-credit-loans\/)\n  \n  Get guidance\n  \n  - [Auto loan resources](https:\/\/www.bankrate.com\/loans\/auto-loans\/)\n  - [Auto loan lender reviews](https:\/\/www.bankrate.com\/loans\/auto-loans\/reviews\/)\n  - [Auto loan calculator](https:\/\/www.bankrate.com\/loans\/auto-loans\/auto-loan-calculator\/)\n  - [Auto loan refinancing guide](https:\/\/www.bankrate.com\/loans\/auto-loans\/how-to-refinance-car-loan\/)\n  \n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/d1a328a134\/auto-loan-refinancing-guide-nav.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) How to get the best auto loan rate 10 min read](https:\/\/www.bankrate.com\/loans\/auto-loans\/how-to-get-the-best-auto-loan-rate\/)\n  - [![](https:\/\/www.bankrate.com\/f\/102997\/720x720\/c481afa0d2\/auto-loan-refinancing-guide-s.jpg\/m\/50x50\/filters:quality\$90\$:format\$webp\$) Auto loan basics 5 min read](https:\/\/www.bankrate.com\/loans\/auto-loans\/what-is-an-auto-loan\/)\n  \n  Compare lenders\n  \n  - [Student loan rates](https:\/\/www.bankrate.com\/loans\/student-loans\/rates\/)\n  - [Student loan refinancing rates](https:\/\/www.bankrate.com\/loans\/student-loans\/refinance-rates\/)\n  - [Best bad credit student loans](https:\/\/www.bankrate.com\/loans\/student-loans\/bad-credit-loans\/)\n  \n  Get guidance\n  \n  - [Student loan resources](https:\/\/www.bankrate.com\/loans\/student-loans\/)\n  - [Student loan lender reviews](https:\/\/www.bankrate.com\/loans\/student-loans\/reviews\/)\n  - [Student loan calculator](https:\/\/www.bankrate.com\/loans\/student-loans\/student-loan-calculator\/)\n  - [Student loan refinance calculator](https:\/\/www.bankrate.com\/loans\/student-loans\/student-loan-refinance-calculator\/)\n  \n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/3d6f458d84\/how-to-start-investing-nav-imagery.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) Private student loan basics 10 min read](https:\/\/www.bankrate.com\/loans\/student-loans\/private-student-loans-guide\/)\n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/4c26764452\/how-to-start-saving.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) How to get a student loan 11 min read](https:\/\/www.bankrate.com\/loans\/student-loans\/how-to-get-student-loan\/)\n  \n  Compare lenders\n  \n  - [Best small business loans](https:\/\/www.bankrate.com\/loans\/small-business\/best-small-business-loans\/)\n  - [Bad credit small business loans](https:\/\/www.bankrate.com\/loans\/small-business\/bad-credit-business-loans\/)\n  - [Business lines of credit](https:\/\/www.bankrate.com\/loans\/small-business\/business-line-of-credit\/)\n  - [Small business loan banks](https:\/\/www.bankrate.com\/loans\/small-business\/best-banks-for-small-business-loans\/)\n  \n  Get guidance\n  \n  - [Small business loans resources](https:\/\/www.bankrate.com\/loans\/small-business\/)\n  - [Small business loan reviews](https:\/\/www.bankrate.com\/loans\/small-business\/reviews\/)\n  - [Small business loan calculator](https:\/\/www.bankrate.com\/loans\/small-business\/business-loan-calculator\/)\n  \n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/4c26764452\/how-to-start-saving.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) How small business loans work 9 min read](https:\/\/www.bankrate.com\/loans\/small-business\/how-do-small-business-loans-work\/)\n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/38750a2d5a\/what-is-a-certified-financial-planner-s.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) How to get a business loan 9 min read](https:\/\/www.bankrate.com\/loans\/small-business\/how-to-get-a-business-loan\/)\n  \n  [Explore all loans resources](https:\/\/www.bankrate.com\/loans\/)\n- [Home equity](https:\/\/www.bankrate.com\/home-equity\/)\n  All\n  \n  Home equity\n  \n  HELOC\n  \n  Home equity loans\n  \n  [Explore all home equity resources](https:\/\/www.bankrate.com\/home-equity\/)\n  \n  Home equity\n  \n  HELOC\n  \n  A HELOC is a variable-rate line of credit that lets you borrow funds for a set period and repay them later.\n  \n  [HELOC Rates](https:\/\/www.bankrate.com\/home-equity\/heloc-rates\/)\n  \n  Home equity basics\n  \n  - [Best HELOC lenders](https:\/\/www.bankrate.com\/home-equity\/heloc-lenders\/)\n  - [HELOC calculator](https:\/\/www.bankrate.com\/home-equity\/heloc-calculator\/)\n  - [What is a HELOC?](https:\/\/www.bankrate.com\/home-equity\/what-is-heloc\/)\n  - [Pros and cons of HELOCs](https:\/\/www.bankrate.com\/home-equity\/pros-cons-of-home-equity-lines\/)\n  - [Home equity lender reviews](https:\/\/www.bankrate.com\/home-equity\/reviews\/)\n  \n  - [![](https:\/\/www.bankrate.com\/f\/102997\/1440x1440\/e9e92b7729\/home-equity-heloc-guide-nav-imagery.png\/m\/50x50\/filters:quality\$90\$:format\$webp\$) What is home equity? 8 min read](https:\/\/www.bankrate.com\/home-equity\/what-is-home-equity\/)\n  - [![Home purchase](https:\/\/www.bankrate.com\/f\/102997\/1280x720\/98576f9f53\/home-purchase.jpeg\/m\/50x50\/filters:quality\$90\$:format\$webp\$) How to calculate home equity 6 min read](https:\/\/www.bankrate.com\/home-equity\/how-to-calculate-equity-in-your-home\/)\n  \n  Home equity loans\n  \n  Home equity loans let you borrow a lump sum at a fixed rate, based on how much of the home you own outright.\n  \n  [Home equity loan rates](https:\/\/www.bankrate.com\/home-equity\/home-equity-loan-rates\/)\n  \n  Get guidance\n  \n  - [What is a home equity loan?](https:\/\/www.bankrate.com\/home-equity\/what-is-home-equity-loan\/)\n  - [Home equity loan pros and cons](https:\/\/www.bankrate.com\/home-equity\/pros-cons-home-equity-loan\/)\n  - [Home equity loan requirements](https:\/\/www.bankrate.com\/home-equity\/requirements-to-borrow-from-home-equity\/)\n  - [HELOC vs home equity loan](https:\/\/www.bankrate.com\/home-equity\/home-equity-loan-vs-line-of-credit\/)\n  - [How to build home equity](https:\/\/www.bankrate.com\/home-equity\/how-to-build-equity-in-your-home\/)\n  \n  - [![](https:\/\/www.bankrate.com\/f\/102997\/721x720\/bad3fd8f56\/heloc-lender-reviews-s.jpg\/m\/50x50\/filters:quality\$90\$:format\$webp\$) Best home equity loan lenders Compare top home equity lenders](https:\/\/www.bankrate.com\/home-equity\/home-equity-loan-lenders\/)\n  - [![CD Rates](https:\/\/www.bankrate.com\/f\/102997\/1920x1080\/2654611691\/cd-rates.jpeg\/m\/50x50\/filters:quality\$90\$:format\$webp\$) Home equity calculator Calculate how much you can borrow](https:\/\/www.bankrate.com\/home-equity\/home-equity-calculator\/)\n  \n  [Explore all home equity resources](https:\/\/www.bankrate.com\/home-equity\/)\n- [Insurance](https:\/\/www.bankrate.com\/insurance\/)\n  All\n  \n  Insurance\n  \n  Auto insurance\n  \n  Home insurance\n  \n  Tools & reviews\n  \n  [Explore all insurance resources](https:\/\/www.bankrate.com\/insurance\/)\n  \n  Insurance\n  \n  Compare rates\n  \n  - 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[Investing](https:\/\/www.bankrate.com\/investing\/)  ›\n2. Crypto vs. stocks: What’s the better choice for you?\n\nAdvertiser Disclosure\n\n# Crypto vs. stocks: What’s the better choice for you?\n![James Royal, Ph.D.](https:\/\/www.bankrate.com\/2021\/10\/26151853\/James-Royal-headshot-scaled-square.jpg?auto=webp&quality=85&width=24&height=24&fit=cover&enable=upscale&crop=1:1,smart) ![Lisa Dammeyer](https:\/\/www.bankrate.com\/brp\/2024\/09\/24170827\/Lisa-Dammeyer-1.jpg?auto=webp&quality=85&width=24&height=24&fit=cover&enable=upscale&crop=1:1,smart)\n\nWritten by\n\nJames Royal, Ph.D.\n\n,\n\n![](https:\/\/www.bankrate.com\/2021\/10\/26151853\/James-Royal-headshot-scaled-square.jpg?auto=webp&quality=85&width=64&height=64&fit=cover&enable=upscale&crop=1:1,smart)\n\n[James Royal, Ph.D.](https:\/\/www.bankrate.com\/authors\/james-royal\/)\n\nFormer Principal Writer, Investing and Wealth Management\n\nExpertise\n\n- •  Investing\n- •  Wealth management\n\nFormer Bankrate principal writer and editor James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more.\n\n[Read more](https:\/\/www.bankrate.com\/authors\/james-royal\/)\n\n- [Connect with James Royal, Ph.D. on Twitter](https:\/\/twitter.com\/JimRoyalPhD)\n- [Connect with James Royal, Ph.D. on LinkedIn](https:\/\/www.linkedin.com\/in\/james-royal-phd-809b929\/)\n- [Get in contact with James Royal, Ph.D. via Email](mailto:jroyal@redventures.com)\n\nClose\n\n[James Royal, Ph.D.](https:\/\/www.bankrate.com\/authors\/james-royal\/),\n\nEdited by\n\nLisa Dammeyer\n\n![](https:\/\/www.bankrate.com\/brp\/2024\/09\/24170827\/Lisa-Dammeyer-1.jpg?auto=webp&quality=85&width=64&height=64&fit=cover&enable=upscale&crop=1:1,smart)\n\n[Lisa Dammeyer](https:\/\/www.bankrate.com\/authors\/lisa-dammeyer\/)\n\nFormer Editor, Investing\n\nExpertise\n\n- •  Investing\n- •  Retirement planning\n\nLisa Dammeyer is a former investing editor at Bankrate. She has more than six years of experience distilling down complex topics for everyday people.\n\n[Read more](https:\/\/www.bankrate.com\/authors\/lisa-dammeyer\/)\n\nClose\n\n[Lisa Dammeyer](https:\/\/www.bankrate.com\/authors\/lisa-dammeyer\/)\n\nPublished on July 15, 2025 \\| 5 min read\n\nBankrate is always editorially independent. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money . Our Bankrate promise is to ensure everything we publish is objective, accurate and trustworthy.\n\n![A bitcoin sits next to a stock certificate.](https:\/\/www.bankrate.com\/brp\/2024\/11\/15133026\/Investments-Crypto-vs-stocks-Whats-the-better-choice-for-you-1.jpg?auto=webp&optimize=high&crop=16:9)\n\nIllustration by Bankrate\n\nTable of contents\n\n- [Cryptocurrency vs. stocks: How they compare](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#should-you-invest-in-cryptocurrency-or-stocks)\n- [Pros and cons of investing in cryptocurrency vs. stocks](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#pros-and-cons-of-investing-in-cryptocurrency-vs-stocks)\n- [Other considerations when investing in stocks vs. crypto](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#other-considerations-when-investing-in-stocks-vs-crypto)\n- [Which is safer, stocks or crypto?](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#which-is-safer-stocks-or-crypto)\n\nTable of contents\n\nBack to top\n\nCryptocurrency’s rapid appreciation has many investors questioning the place of stocks in their portfolios. But there are numerous differences between stocks and [cryptocurrencies](https:\/\/www.bankrate.com\/investing\/what-is-cryptocurrency\/). The most important is that a stock is an ownership interest in a business (backed by the company’s assets and cash flow), whereas cryptocurrency, in most cases, is not backed by anything at all.\n\nIf you’re buying cryptocurrencies, it’s important to understand what you’re purchasing and how they compare to traditional investments such as stocks, which have a solid long-term track record.\n\nCompare advisors:  [Bankrate's list of the best financial advisors](https:\/\/www.bankrate.com\/investing\/financial-advisors\/best-financial-advisors\/)\n\n## Cryptocurrency vs. stocks: How they compare\nAny savvy investor needs to know exactly what they’re investing in. It’s crucial to weigh the risks and rewards of investing, and what will drive the investment’s success. If they don’t have this kind of information, they can’t make the calculation. In this case, it’s more like gambling than investing.\n\nHere are the key things investors need to know about stocks and cryptocurrency.\n\n### Stocks\nA stock is a fractional ownership interest in a business. It’s easy to lose sight of this, if you become overwhelmed by the wiggling stock prices — and the potential for profit. As a legal ownership stake in the business, the stock gives shareholders a claim on the assets and cash flow of the business. These back your investment and provide a basis for its valuation.\n\n### Why stocks rise and fall\nA stock price moves as investors assess the future success of the company. While investors may become overly optimistic about the stock in the short term, the stock price ultimately depends on the company’s ability to grow its profits over the long term. That is, a stock rises in the long term [due to the success of the underlying company](https:\/\/www.bankrate.com\/investing\/what-makes-a-stock-go-up-in-price\/).\n\nFor a stock to be a successful investment, the underlying company must perform well over time. (Here’s a [step-by-step guide on how to invest in stocks](https:\/\/www.bankrate.com\/investing\/how-to-invest-in-stocks\/).)\n\n### Cryptocurrency\nCryptocurrency has taken the world by storm, especially during the last few years. After having topped out around \\$3 trillion in 2021 and falling in 2022, the total value of all these digital currencies now sits at about \\$3.4 trillion as of July 2025, according to CoinMarketCap.com. Of these, [Bitcoin](https:\/\/www.bankrate.com\/investing\/what-is-bitcoin\/) is the most popular, worth more than \\$2.1 trillion itself. Investors have swarmed to this digital gold rush, often with little knowledge and a lot of hope.\n\nGenerally, cryptocurrency is backed by no hard assets (specialized [stablecoins](https:\/\/www.bankrate.com\/investing\/stablecoin-cryptocurrency\/) being an exception), and that’s the case for the [most popular crypto coins](https:\/\/www.bankrate.com\/investing\/types-of-cryptocurrency\/) such as Bitcoin and [Ethereum](https:\/\/www.bankrate.com\/investing\/what-is-ethereum\/). A cryptocurrency may allow you to perform certain functions, such as sending money to another person or using smart contracts that automatically execute after specific conditions are met.\n\n### Why cryptocurrencies rise and fall\nBecause cryptocurrency is not backed by assets or cash flow, the only thing moving crypto prices is speculation driven by sentiment. As sentiment changes, prices shift — sometimes drastically. So cryptocurrency is driven only by the hope that someone will buy it for more in the future — what’s called the “greater fool theory of investing.”\n\nFor a cryptocurrency to be a successful investment, you must get someone to buy it from you for more than you paid for it. That is, the market must be more optimistic about it than you are.\n\nLearn more:  [Bankrate's beginner guide to investing in cryptocurrency](https:\/\/www.bankrate.com\/investing\/how-to-invest-in-cryptocurrency-beginners-guide\/)\n\n![](https:\/\/navi.cohesionapps.com\/display?write_key=wk_2M3TlVcWbz8i1RTZjLkSmbWfyQC&adId=ffdc152c6d&req=https%3A%2F%2Fwww.bankrate.com%2Finvesting%2Fcrypto-vs-stocks%2F&ref=)\n\n## Pros and cons of investing in cryptocurrency vs. stocks\n### Pros of investing in cryptocurrency\n- **Possible hedge against fiat currency:** For some investors, one of the biggest appeals of cryptocurrency is its decentralized nature. It’s not controlled by central banks or governments who like to print money and generate inflation in fiat currencies such as the U.S. dollar or the euro. Cryptocurrency has been called “digital gold” by some investors who hold it because they think it will protect them from inflation.\n- **Potential for outsized returns:** Buying cryptocurrencies creates the potential for large gains on your investment. Several cryptocurrencies have seen their prices skyrocket since first being introduced. These gains are the main reason people are attracted to cryptocurrencies, but the potential for price appreciation comes with significant risk.\n- **Growing number of coins:** In the early days of cryptocurrencies, there were just a few coins that could be invested in, but speculative interest has changed that. [New coins are introduced regularly](https:\/\/www.bankrate.com\/investing\/what-are-altcoins\/) and there are now thousands to choose from.\n- **Wide interest in digital currencies:** There seems to be a growing interest in cryptocurrencies from investors, companies and governments. Tesla holds Bitcoin on its balance sheet and briefly accepted the digital currency as payment before reversing course. El Salvador adopted Bitcoin as legal tender in 2021, though the International Monetary Fund has urged the country to reverse its decision. Increasing acceptance of digital currencies could be positive for investors.\n- **Possible hedge against fiat currency:** For some investors, one of the biggest appeals of cryptocurrency is its decentralized nature. It’s not controlled by central banks or governments who like to print money and generate inflation in fiat currencies such as the U.S. dollar or the euro. Cryptocurrency has been called “digital gold” by some investors who hold it because they think it will protect them from inflation.\n- **Potential for outsized returns:** Buying cryptocurrencies creates the potential for large gains on your investment. Several cryptocurrencies have seen their prices skyrocket since first being introduced. These gains are the main reason people are attracted to cryptocurrencies, but the potential for price appreciation comes with significant risk.\n- **Growing number of coins:** In the early days of cryptocurrencies, there were just a few coins that could be invested in, but speculative interest has changed that. [New coins are introduced regularly](https:\/\/www.bankrate.com\/investing\/what-are-altcoins\/) and there are now thousands to choose from.\n- **Wide interest in digital currencies:** There seems to be a growing interest in cryptocurrencies from investors, companies and governments. Tesla holds Bitcoin on its balance sheet and briefly accepted the digital currency as payment before reversing course. El Salvador adopted Bitcoin as legal tender in 2021, though the International Monetary Fund has urged the country to reverse its decision. Increasing acceptance of digital currencies could be positive for investors.\n\n### Cons of investing in cryptocurrency\n- **Extreme volatility:** Cryptocurrencies have been extremely volatile so far in their relatively young existence. They aren’t backed by anything, so the price they trade at is determined by the whims of traders. Fortunes can be made and lost quickly and there’s no telling where a coin might trade next.\n- **Cybersecurity risks:** Despite cryptocurrency enthusiasts touting the security benefits of digital coins, there have been notable hacks involving cryptocurrencies. It is often difficult to recover stolen funds.\n- **No intrinsic value:** Cryptocurrencies have no intrinsic value, which means they aren’t backed by underlying assets or earnings the way that stocks are. Stocks have value because of their future earnings power and what they will return for their owners, while cryptocurrencies offer nothing of the sort.\n- **Regulatory risks:** While El Salvador has embraced Bitcoin, many governments are much more skeptical about cryptocurrencies. China has banned them altogether, other countries could follow and the [U.S. is regulating them](https:\/\/www.bankrate.com\/investing\/president-biden-executive-order-on-crypto-what-it-means-for-you\/), though President-elect Trump is expected to have a crypto-friendly administration.\n- **Extreme volatility:** Cryptocurrencies have been extremely volatile so far in their relatively young existence. They aren’t backed by anything, so the price they trade at is determined by the whims of traders. Fortunes can be made and lost quickly and there’s no telling where a coin might trade next.\n- **Cybersecurity risks:** Despite cryptocurrency enthusiasts touting the security benefits of digital coins, there have been notable hacks involving cryptocurrencies. It is often difficult to recover stolen funds.\n- **No intrinsic value:** Cryptocurrencies have no intrinsic value, which means they aren’t backed by underlying assets or earnings the way that stocks are. Stocks have value because of their future earnings power and what they will return for their owners, while cryptocurrencies offer nothing of the sort.\n- **Regulatory risks:** While El Salvador has embraced Bitcoin, many governments are much more skeptical about cryptocurrencies. China has banned them altogether, other countries could follow and the [U.S. is regulating them](https:\/\/www.bankrate.com\/investing\/president-biden-executive-order-on-crypto-what-it-means-for-you\/), though President-elect Trump is expected to have a crypto-friendly administration.\n\n### Pros of investing in stocks\n- **Long history of solid returns:** Stocks have a long track record of producing solid investment returns, with the S\\&P 500 stock index returning about 10 percent over the long-term. Though [stocks can be volatile](https:\/\/www.bankrate.com\/investing\/best-performing-stocks\/) in the short term, they have generally been safe to hold over long periods of time.\n- **Have intrinsic value:** A stock represents an ownership interest in a company and its value over time depends on the success of the underlying company. Companies own assets that produce earnings and cash flow for investors, creating what’s known as intrinsic value.\n- **Accessible:** It is easier than ever to invest in stocks these days with many [online brokers](https:\/\/www.bankrate.com\/investing\/best-online-brokers-for-stock-trading\/) cutting trading fees to zero. You can invest in individual stocks or choose to purchase a diversified basket of stocks through an index fund. Index funds help keep costs low and you can build a diversified portfolio even if you don’t have much money to start with.\n- **Stronger regulation:** Stock exchanges, brokers and companies are all heavily regulated through various government agencies. Companies are required to [provide certain information to investors](https:\/\/www.bankrate.com\/investing\/sec-filings-stock-investors-should-know\/) through the Securities and Exchange Commission. No regulatory body is perfect, but stocks have been around for a long time and there are certain important investor protections in place.\n\n### Cons of investing in stocks\n- **Volatile:** When you hold a broad basket of stocks through [index funds](https:\/\/www.bankrate.com\/investing\/low-cost-index-funds-guide\/), stocks are less volatile than cryptocurrencies. Individual stocks can be more volatile, but typically less so than cryptocurrencies. Because of this volatility, stocks are best held as part of a long-term investment plan, so you have time to recover from any short-term losses.\n- **Lower potential for extreme gains:** Broad stock indexes such as the [S\\&P 500](https:\/\/www.bankrate.com\/investing\/what-is-sp-500\/) likely have less potential for the extreme gains that can sometimes be found among cryptocurrencies. Stocks have returned about 10 percent per year over the long term, whereas it’s not uncommon for cryptocurrencies to move 10 percent in a single day.\n\nGet started:  [Match with an advisor who can help you achieve your financial goals](https:\/\/advisormatch.bankrate.com\/questionnaire?am_type=BR&amp%3Butm_source=BRarticle)\n\n![](https:\/\/navi.cohesionapps.com\/display?write_key=wk_2M3TlVcWbz8i1RTZjLkSmbWfyQC&adId=a7454f5959&req=https%3A%2F%2Fwww.bankrate.com%2Finvesting%2Fcrypto-vs-stocks%2F&ref=)\n\n## Other considerations when investing in stocks vs. crypto\n### Time horizon\nYour time horizon — when you need the money from an investment — is a key criterion. The shorter your timeline, the safer your asset should be, so that it’s there when you need it. The more volatile an asset, the less suited it is for those with a short timeline. Generally, experts suggest investors in risky assets such as stocks need at least three years to ride out volatility.\n\n#### Stocks\n- Stocks are often volatile, but they tend to be less volatile than crypto. Individual stocks are more volatile than a portfolio of stocks, which tends to benefit from [diversification](https:\/\/www.bankrate.com\/investing\/diversification-is-important-in-investing\/).\n- Stocks are better suited to investors who can leave their money alone and don’t need to access it. Generally, the longer you can leave it invested, the better.\n- Some stocks can be more volatile than others. For example, growth stocks tend to fluctuate much more than value stocks or [dividend stocks](https:\/\/www.bankrate.com\/investing\/how-to-invest-in-dividend-stocks\/).\n- Investors may shift from more aggressive stocks (growth stocks) to safer ones (dividend stocks) as they need to tap their money, such as when they approach retirement.\n#### Cryptocurrency\n- While stocks are volatile, cryptocurrency is ridiculously volatile. For example, during 2021, Bitcoin lost more than half its value in a few months and later gained 100 percent. Such volatility makes crypto unsuited for short-term investors.\n- Crypto is better suited to traders who can leave their money tied up and wait for it to recover. Think years rather than weeks.\n### Portfolio management\nAs you’re thinking about constructing your portfolio, you don’t have to make an either-or choice between cryptocurrency and stocks — or other kinds of asset such as [bonds](https:\/\/www.bankrate.com\/investing\/how-to-invest-in-bonds\/) or funds, either. It’s all about weighting your portfolio in a way that fits your risk and time horizon.\n\n#### Cryptocurrency\n- Given its inherent risks, cryptocurrency works better with a small allocation in your overall portfolio. Think 5 percent or less.\n- Even a small allocation could do wonders for your portfolio if cryptocurrency really takes off. Also, limiting to a small allocation protects you against a complete loss if crypto prices collapse.\n- If crypto grows to be a significant portion of your portfolio, you can re-allocate more of your money to stocks to lower your portfolio’s overall risk.\n#### Stocks\n- Given stocks’ strong long-term record, a diversified collection of stocks should make up the majority of your portfolio, especially if you have decades until you need to tap it.\n- If you’re investing in individual stocks, you’ll need to research your stocks carefully to achieve good returns.\n- If you’re investing in funds, you can buy a broadly diversified fund such as [an S\\&P 500 index fund](https:\/\/www.bankrate.com\/investing\/how-to-buy-sp-500-index-fund\/) without significant research and enjoy the potential for high returns.\n## Which is safer, stocks or crypto?\nWhen it comes to safety, both stocks and cryptocurrencies present their unique set of risks. Stocks, backed by a company’s assets and cash flow, have a long history of delivering solid returns. They are regulated by government bodies and have investor protections in place. However, market volatility, business decisions, and international events can impact stock investments.\n\nOn the other hand, cryptocurrencies, while offering the potential for substantial gains, are highly volatile and lack the backing of tangible assets. They also pose risks such as cybersecurity threats and regulatory uncertainties. Therefore, the safety of these investments largely depends on your personal risk tolerance and financial goals.\n\nA broadly diversified stock portfolio generally presents a safer option than cryptocurrencies because of their intrinsic value and history of delivering solid long-term returns. Cryptocurrencies may hold greater potential for outsized gains, but come with significant risk.\n\nLearn more:  [How to build a financial plan for you and your family](https:\/\/www.bankrate.com\/investing\/financial-advisors\/what-is-financial-planning\/)\n\n## Bottom line\nSome cryptocurrencies have soared in price since being introduced over the past few years, but investors need to understand what they’re investing in, instead of just rushing in because other traders are, a symptom of FOMO syndrome (fear of missing out). If you decide to take a stake in crypto, consider how it fits with your own risk tolerance and financial needs. Investors can earn good returns without investing in cryptocurrency, and some investors, including legends such as [Warren Buffett, won’t touch cryptocurrency](https:\/\/www.bankrate.com\/investing\/good-investment-advice-to-follow\/).\n\n— *Bankrate’s [Brian Baker, CFA](https:\/\/www.bankrate.com\/authors\/brian-baker-cfa\/), contributed to an update of this article.*\n\n*Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.*\n\nDid you find this page helpful?\n\n**Why we ask for feedback** Your feedback helps us improve our content and services. It takes less than a minute to complete.\n\nYour responses are anonymous and will only be used for improving our website.\n\nHelp us improve our content\n\nYes\n\nNo\n\nThank you for your feedback\\!\n\nYour input helps us improve our content and services.\n\nCite us\n\nShare this article\n\nShare this article\n\nClose\n\n![](https:\/\/www.bankrate.com\/2021\/10\/26151853\/James-Royal-headshot-scaled-square.jpg?auto=webp&quality=85&width=96&height=96&fit=cover&enable=upscale&crop=1:1,smart)\n\nWritten by\n\n[James Royal, Ph.D.](https:\/\/www.bankrate.com\/authors\/james-royal\/)\n\nFormer Principal Writer, Investing and Wealth Management\n\n- [Connect with James Royal, Ph.D. on Twitter](https:\/\/twitter.com\/JimRoyalPhD)\n- [Connect with James Royal, Ph.D. on LinkedIn](https:\/\/www.linkedin.com\/in\/james-royal-phd-809b929\/)\n- [Get in contact with James Royal, Ph.D. via Email](mailto:jroyal@redventures.com)\n\n[Read more from James](https:\/\/www.bankrate.com\/authors\/james-royal\/)\n\nFormer Bankrate principal writer and editor James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more.\n\n![A bitcoin sits next to a stock certificate.](https:\/\/www.bankrate.com\/brp\/2024\/11\/15133026\/Investments-Crypto-vs-stocks-Whats-the-better-choice-for-you-1.jpg?auto=webp&optimize=high&crop=16:9)\n\nIllustration by Bankrate\n\nBankrate is always editorially independent. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money . Our Bankrate promise is to ensure everything we publish is objective, accurate and trustworthy.\n\nTable of contents\n\n- [Cryptocurrency vs. stocks: How they compare](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#should-you-invest-in-cryptocurrency-or-stocks)\n- [Pros and cons of investing in cryptocurrency vs. stocks](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#pros-and-cons-of-investing-in-cryptocurrency-vs-stocks)\n- [Other considerations when investing in stocks vs. crypto](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#other-considerations-when-investing-in-stocks-vs-crypto)\n- [Which is safer, stocks or crypto?](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#which-is-safer-stocks-or-crypto)\n\nBack to top\n\n## You may also like\n![Older couple looking out of the window](https:\/\/www.bankrate.com\/2017\/12\/19131021\/home-equity-loan-heloc-or-reverse-mortgage-what-is-the-best-for-you.jpg)\n\n[Home equity loan or HELOC vs. reverse mortgage: Which is right for you?](https:\/\/www.bankrate.com\/home-equity\/home-equity-loan-heloc-vs-reverse-mortgage\/)\n\nHome Equity\n\nBy [Erik J. Martin](https:\/\/www.bankrate.com\/authors\/erik-j-martin\/)\n\n9 min read\n\n![A picture of golden Bitcoins](https:\/\/www.bankrate.com\/2021\/10\/19101959\/The-first-Bitcoin-futures-ETF-is-here.jpeg)\n\n[Bitcoin ETFs: What they are and how to invest in them](https:\/\/www.bankrate.com\/investing\/bitcoin-etfs\/)\n\nInvesting\n\nBy [Brian Baker, CFA](https:\/\/www.bankrate.com\/authors\/brian-baker-cfa\/)\n\n3 min read\n\n![A woman works on her laptop while holding her phone and looking at papers.](https:\/\/www.bankrate.com\/brp\/2024\/04\/24160259\/mutual-funds-vs-etfs-300x169.jpg)\n\n[ETF vs. mutual fund: Which is the better investment?](https:\/\/www.bankrate.com\/investing\/mutual-fund-vs-etf-which-is-better\/)\n\nInvesting\n\nBy [James Royal, Ph.D.](https:\/\/www.bankrate.com\/authors\/james-royal\/)\n\n10 min read\n\n![Bitcoin and Ethereum cryptocurrency with candle stick graph chart](https:\/\/www.bankrate.com\/brp\/2024\/09\/12185346\/Day-trading-crypto-300x169.jpg)\n\n[Day trading crypto: 9 essential things to know before starting to buy and sell](https:\/\/www.bankrate.com\/investing\/day-trading-crypto\/)\n\nInvesting\n\nBy [James Royal, Ph.D.](https:\/\/www.bankrate.com\/authors\/james-royal\/)\n\n6 min read\n\n## [Bankrate logo](https:\/\/www.bankrate.com\/)\n### About\n- [About us](https:\/\/www.bankrate.com\/about\/)\n- [Leadership](https:\/\/www.bankrate.com\/leadership\/)\n- [Press room](https:\/\/www.bankrate.com\/press-releases\/)\n- [Bankrate Data Center](https:\/\/www.bankrate.com\/data-center\/)\n- [Careers](https:\/\/www.bankrate.com\/careers\/)\n- [Site map](https:\/\/www.bankrate.com\/corporate\/site-map\/)\n\n### Help\n- [Compare rates](https:\/\/www.bankrate.com\/compare-rates\/)\n- [Latest news](https:\/\/www.bankrate.com\/news\/)\n- [Popular topics](https:\/\/www.bankrate.com\/popular-finance-topics\/)\n- [Advertise with us](https:\/\/www.bankrate.com\/media-kit\/)\n\n### Legal\n- [Privacy policy](https:\/\/www.bankrate.com\/privacy\/)\n- Cookie settings\n- [Do Not Sell or Share My Personal Information](https:\/\/www.bankrate.com\/do-not-sell-or-share-my-personal-information\/)\n- [Consumer Health Information Privacy Policy](https:\/\/www.bankrate.com\/consumer-health-information-privacy-policy\/)\n- [Understanding Bankrate’s averages](https:\/\/www.bankrate.com\/understanding-bankrates-rate-averages\/)\n- [Terms of use](https:\/\/www.bankrate.com\/terms\/)\n- [GLBA annual notice](https:\/\/www.bankrate.com\/glba-notice\/)\n- [California Consumer Financial Privacy Notice](https:\/\/www.bankrate.com\/2022\/02\/15094901\/california-notice.pdf)\n- [Licenses](https:\/\/www.bankrate.com\/licenses\/)\n\n### How we make money\nBankrate.com is an independent, advertising-supported publisher and comparison service. 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We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.\n\nBankrate follows a strict [editorial policy](https:\/\/www.bankrate.com\/editorial-guidelines\/ \"editorial policy\"), so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.\n\nWe’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.\n\nBankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.\n\nTable of contents\n\n- [Cryptocurrency vs. stocks: How they compare](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#should-you-invest-in-cryptocurrency-or-stocks)\n- [Pros and cons of investing in cryptocurrency vs. stocks](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#pros-and-cons-of-investing-in-cryptocurrency-vs-stocks)\n- [Other considerations when investing in stocks vs. crypto](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#other-considerations-when-investing-in-stocks-vs-crypto)\n- [Which is safer, stocks or crypto?](https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/#which-is-safer-stocks-or-crypto)\n\n**Quick citation guide**   Select a citation to automatically copy to clipboard.\n\n**APA:**  Royal, J. (2025, July 15). *Crypto vs. stocks: What’s the better choice for you?* Bankrate. Retrieved April 23, 2026, from https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/\n\nCopied to clipboard\\!\n\n**MLA:**  Royal, James. \"Crypto vs. stocks: What’s the better choice for you?\" *Bankrate*. 15 July 2025, https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/.\n\nCopied to clipboard\\!\n\n**Chicago:**  Royal, James. \"Crypto vs. stocks: What’s the better choice for you?\" Bankrate. July 15, 2025. https:\/\/www.bankrate.com\/investing\/crypto-vs-stocks\/.\n\nCopied to clipboard\\!\n\n![](https:\/\/www.facebook.com\/tr?id=1805085980359671&ev=PageView&noscript=1)\n\n![](https:\/\/www.facebook.com\/tr?id=1564326531369118&ev=PageView&noscript=1)","attrs_readable_markdown":"Cryptocurrency’s rapid appreciation has many investors questioning the place of stocks in their portfolios. But there are numerous differences between stocks and [cryptocurrencies](https:\/\/www.bankrate.com\/investing\/what-is-cryptocurrency\/). The most important is that a stock is an ownership interest in a business (backed by the company’s assets and cash flow), whereas cryptocurrency, in most cases, is not backed by anything at all.\n\nIf you’re buying cryptocurrencies, it’s important to understand what you’re purchasing and how they compare to traditional investments such as stocks, which have a solid long-term track record.\n\n## Cryptocurrency vs. stocks: How they compare\nAny savvy investor needs to know exactly what they’re investing in. It’s crucial to weigh the risks and rewards of investing, and what will drive the investment’s success. If they don’t have this kind of information, they can’t make the calculation. In this case, it’s more like gambling than investing.\n\nHere are the key things investors need to know about stocks and cryptocurrency.\n\n### Stocks\nA stock is a fractional ownership interest in a business. It’s easy to lose sight of this, if you become overwhelmed by the wiggling stock prices — and the potential for profit. As a legal ownership stake in the business, the stock gives shareholders a claim on the assets and cash flow of the business. These back your investment and provide a basis for its valuation.\n\n### Why stocks rise and fall\nA stock price moves as investors assess the future success of the company. While investors may become overly optimistic about the stock in the short term, the stock price ultimately depends on the company’s ability to grow its profits over the long term. That is, a stock rises in the long term [due to the success of the underlying company](https:\/\/www.bankrate.com\/investing\/what-makes-a-stock-go-up-in-price\/).\n\nFor a stock to be a successful investment, the underlying company must perform well over time. (Here’s a [step-by-step guide on how to invest in stocks](https:\/\/www.bankrate.com\/investing\/how-to-invest-in-stocks\/).)\n\n### Cryptocurrency\nCryptocurrency has taken the world by storm, especially during the last few years. After having topped out around \\$3 trillion in 2021 and falling in 2022, the total value of all these digital currencies now sits at about \\$3.4 trillion as of July 2025, according to CoinMarketCap.com. Of these, [Bitcoin](https:\/\/www.bankrate.com\/investing\/what-is-bitcoin\/) is the most popular, worth more than \\$2.1 trillion itself. Investors have swarmed to this digital gold rush, often with little knowledge and a lot of hope.\n\nGenerally, cryptocurrency is backed by no hard assets (specialized [stablecoins](https:\/\/www.bankrate.com\/investing\/stablecoin-cryptocurrency\/) being an exception), and that’s the case for the [most popular crypto coins](https:\/\/www.bankrate.com\/investing\/types-of-cryptocurrency\/) such as Bitcoin and [Ethereum](https:\/\/www.bankrate.com\/investing\/what-is-ethereum\/). A cryptocurrency may allow you to perform certain functions, such as sending money to another person or using smart contracts that automatically execute after specific conditions are met.\n\n### Why cryptocurrencies rise and fall\nBecause cryptocurrency is not backed by assets or cash flow, the only thing moving crypto prices is speculation driven by sentiment. As sentiment changes, prices shift — sometimes drastically. So cryptocurrency is driven only by the hope that someone will buy it for more in the future — what’s called the “greater fool theory of investing.”\n\nFor a cryptocurrency to be a successful investment, you must get someone to buy it from you for more than you paid for it. That is, the market must be more optimistic about it than you are.\n\n## Pros and cons of investing in cryptocurrency vs. stocks\n### Pros of investing in cryptocurrency\n- **Possible hedge against fiat currency:** For some investors, one of the biggest appeals of cryptocurrency is its decentralized nature. It’s not controlled by central banks or governments who like to print money and generate inflation in fiat currencies such as the U.S. dollar or the euro. Cryptocurrency has been called “digital gold” by some investors who hold it because they think it will protect them from inflation.\n- **Potential for outsized returns:** Buying cryptocurrencies creates the potential for large gains on your investment. Several cryptocurrencies have seen their prices skyrocket since first being introduced. These gains are the main reason people are attracted to cryptocurrencies, but the potential for price appreciation comes with significant risk.\n- **Growing number of coins:** In the early days of cryptocurrencies, there were just a few coins that could be invested in, but speculative interest has changed that. [New coins are introduced regularly](https:\/\/www.bankrate.com\/investing\/what-are-altcoins\/) and there are now thousands to choose from.\n- **Wide interest in digital currencies:** There seems to be a growing interest in cryptocurrencies from investors, companies and governments. Tesla holds Bitcoin on its balance sheet and briefly accepted the digital currency as payment before reversing course. El Salvador adopted Bitcoin as legal tender in 2021, though the International Monetary Fund has urged the country to reverse its decision. Increasing acceptance of digital currencies could be positive for investors.\n- **Possible hedge against fiat currency:** For some investors, one of the biggest appeals of cryptocurrency is its decentralized nature. It’s not controlled by central banks or governments who like to print money and generate inflation in fiat currencies such as the U.S. dollar or the euro. Cryptocurrency has been called “digital gold” by some investors who hold it because they think it will protect them from inflation.\n- **Potential for outsized returns:** Buying cryptocurrencies creates the potential for large gains on your investment. Several cryptocurrencies have seen their prices skyrocket since first being introduced. These gains are the main reason people are attracted to cryptocurrencies, but the potential for price appreciation comes with significant risk.\n- **Growing number of coins:** In the early days of cryptocurrencies, there were just a few coins that could be invested in, but speculative interest has changed that. [New coins are introduced regularly](https:\/\/www.bankrate.com\/investing\/what-are-altcoins\/) and there are now thousands to choose from.\n- **Wide interest in digital currencies:** There seems to be a growing interest in cryptocurrencies from investors, companies and governments. Tesla holds Bitcoin on its balance sheet and briefly accepted the digital currency as payment before reversing course. El Salvador adopted Bitcoin as legal tender in 2021, though the International Monetary Fund has urged the country to reverse its decision. Increasing acceptance of digital currencies could be positive for investors.\n\n### Cons of investing in cryptocurrency\n- **Extreme volatility:** Cryptocurrencies have been extremely volatile so far in their relatively young existence. They aren’t backed by anything, so the price they trade at is determined by the whims of traders. Fortunes can be made and lost quickly and there’s no telling where a coin might trade next.\n- **Cybersecurity risks:** Despite cryptocurrency enthusiasts touting the security benefits of digital coins, there have been notable hacks involving cryptocurrencies. It is often difficult to recover stolen funds.\n- **No intrinsic value:** Cryptocurrencies have no intrinsic value, which means they aren’t backed by underlying assets or earnings the way that stocks are. Stocks have value because of their future earnings power and what they will return for their owners, while cryptocurrencies offer nothing of the sort.\n- **Regulatory risks:** While El Salvador has embraced Bitcoin, many governments are much more skeptical about cryptocurrencies. China has banned them altogether, other countries could follow and the [U.S. is regulating them](https:\/\/www.bankrate.com\/investing\/president-biden-executive-order-on-crypto-what-it-means-for-you\/), though President-elect Trump is expected to have a crypto-friendly administration.\n- **Extreme volatility:** Cryptocurrencies have been extremely volatile so far in their relatively young existence. They aren’t backed by anything, so the price they trade at is determined by the whims of traders. Fortunes can be made and lost quickly and there’s no telling where a coin might trade next.\n- **Cybersecurity risks:** Despite cryptocurrency enthusiasts touting the security benefits of digital coins, there have been notable hacks involving cryptocurrencies. It is often difficult to recover stolen funds.\n- **No intrinsic value:** Cryptocurrencies have no intrinsic value, which means they aren’t backed by underlying assets or earnings the way that stocks are. Stocks have value because of their future earnings power and what they will return for their owners, while cryptocurrencies offer nothing of the sort.\n- **Regulatory risks:** While El Salvador has embraced Bitcoin, many governments are much more skeptical about cryptocurrencies. China has banned them altogether, other countries could follow and the [U.S. is regulating them](https:\/\/www.bankrate.com\/investing\/president-biden-executive-order-on-crypto-what-it-means-for-you\/), though President-elect Trump is expected to have a crypto-friendly administration.\n\n### Pros of investing in stocks\n- **Long history of solid returns:** Stocks have a long track record of producing solid investment returns, with the S\\&P 500 stock index returning about 10 percent over the long-term. Though [stocks can be volatile](https:\/\/www.bankrate.com\/investing\/best-performing-stocks\/) in the short term, they have generally been safe to hold over long periods of time.\n- **Have intrinsic value:** A stock represents an ownership interest in a company and its value over time depends on the success of the underlying company. Companies own assets that produce earnings and cash flow for investors, creating what’s known as intrinsic value.\n- **Accessible:** It is easier than ever to invest in stocks these days with many [online brokers](https:\/\/www.bankrate.com\/investing\/best-online-brokers-for-stock-trading\/) cutting trading fees to zero. You can invest in individual stocks or choose to purchase a diversified basket of stocks through an index fund. Index funds help keep costs low and you can build a diversified portfolio even if you don’t have much money to start with.\n- **Stronger regulation:** Stock exchanges, brokers and companies are all heavily regulated through various government agencies. Companies are required to [provide certain information to investors](https:\/\/www.bankrate.com\/investing\/sec-filings-stock-investors-should-know\/) through the Securities and Exchange Commission. No regulatory body is perfect, but stocks have been around for a long time and there are certain important investor protections in place.\n\n### Cons of investing in stocks\n- **Volatile:** When you hold a broad basket of stocks through [index funds](https:\/\/www.bankrate.com\/investing\/low-cost-index-funds-guide\/), stocks are less volatile than cryptocurrencies. Individual stocks can be more volatile, but typically less so than cryptocurrencies. Because of this volatility, stocks are best held as part of a long-term investment plan, so you have time to recover from any short-term losses.\n- **Lower potential for extreme gains:** Broad stock indexes such as the [S\\&P 500](https:\/\/www.bankrate.com\/investing\/what-is-sp-500\/) likely have less potential for the extreme gains that can sometimes be found among cryptocurrencies. Stocks have returned about 10 percent per year over the long term, whereas it’s not uncommon for cryptocurrencies to move 10 percent in a single day.\n## Other considerations when investing in stocks vs. crypto\n### Time horizon\nYour time horizon — when you need the money from an investment — is a key criterion. The shorter your timeline, the safer your asset should be, so that it’s there when you need it. The more volatile an asset, the less suited it is for those with a short timeline. Generally, experts suggest investors in risky assets such as stocks need at least three years to ride out volatility.\n\n#### Stocks\n- Stocks are often volatile, but they tend to be less volatile than crypto. Individual stocks are more volatile than a portfolio of stocks, which tends to benefit from [diversification](https:\/\/www.bankrate.com\/investing\/diversification-is-important-in-investing\/).\n- Stocks are better suited to investors who can leave their money alone and don’t need to access it. Generally, the longer you can leave it invested, the better.\n- Some stocks can be more volatile than others. For example, growth stocks tend to fluctuate much more than value stocks or [dividend stocks](https:\/\/www.bankrate.com\/investing\/how-to-invest-in-dividend-stocks\/).\n- Investors may shift from more aggressive stocks (growth stocks) to safer ones (dividend stocks) as they need to tap their money, such as when they approach retirement.\n#### Cryptocurrency\n- While stocks are volatile, cryptocurrency is ridiculously volatile. For example, during 2021, Bitcoin lost more than half its value in a few months and later gained 100 percent. Such volatility makes crypto unsuited for short-term investors.\n- Crypto is better suited to traders who can leave their money tied up and wait for it to recover. Think years rather than weeks.\n### Portfolio management\nAs you’re thinking about constructing your portfolio, you don’t have to make an either-or choice between cryptocurrency and stocks — or other kinds of asset such as [bonds](https:\/\/www.bankrate.com\/investing\/how-to-invest-in-bonds\/) or funds, either. It’s all about weighting your portfolio in a way that fits your risk and time horizon.\n\n#### Cryptocurrency\n- Given its inherent risks, cryptocurrency works better with a small allocation in your overall portfolio. Think 5 percent or less.\n- Even a small allocation could do wonders for your portfolio if cryptocurrency really takes off. Also, limiting to a small allocation protects you against a complete loss if crypto prices collapse.\n- If crypto grows to be a significant portion of your portfolio, you can re-allocate more of your money to stocks to lower your portfolio’s overall risk.\n#### Stocks\n- Given stocks’ strong long-term record, a diversified collection of stocks should make up the majority of your portfolio, especially if you have decades until you need to tap it.\n- If you’re investing in individual stocks, you’ll need to research your stocks carefully to achieve good returns.\n- If you’re investing in funds, you can buy a broadly diversified fund such as [an S\\&P 500 index fund](https:\/\/www.bankrate.com\/investing\/how-to-buy-sp-500-index-fund\/) without significant research and enjoy the potential for high returns.\n## Which is safer, stocks or crypto?\nWhen it comes to safety, both stocks and cryptocurrencies present their unique set of risks. Stocks, backed by a company’s assets and cash flow, have a long history of delivering solid returns. They are regulated by government bodies and have investor protections in place. However, market volatility, business decisions, and international events can impact stock investments.\n\nOn the other hand, cryptocurrencies, while offering the potential for substantial gains, are highly volatile and lack the backing of tangible assets. They also pose risks such as cybersecurity threats and regulatory uncertainties. Therefore, the safety of these investments largely depends on your personal risk tolerance and financial goals.\n\nA broadly diversified stock portfolio generally presents a safer option than cryptocurrencies because of their intrinsic value and history of delivering solid long-term returns. Cryptocurrencies may hold greater potential for outsized gains, but come with significant risk.\n\n## Bottom line\nSome cryptocurrencies have soared in price since being introduced over the past few years, but investors need to understand what they’re investing in, instead of just rushing in because other traders are, a symptom of FOMO syndrome (fear of missing out). If you decide to take a stake in crypto, consider how it fits with your own risk tolerance and financial needs. Investors can earn good returns without investing in cryptocurrency, and some investors, including legends such as [Warren Buffett, won’t touch cryptocurrency](https:\/\/www.bankrate.com\/investing\/good-investment-advice-to-follow\/).\n\n— *Bankrate’s [Brian Baker, CFA](https:\/\/www.bankrate.com\/authors\/brian-baker-cfa\/), contributed to an update of this article.*\n\n*Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. 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Cryptocurrency Vs. Stocks: Which Is The Better Choice For You? | Bankrate

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Crypto’s rapid rise has investors questioning the role of stocks in their portfolios. Learn from Bankrate the difference between stocks and crypto., Crypto’s rapid rise has investors questioning the role of stocks in their portfolios. Learn from Bankrate the difference between stocks and crypto.

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Cryptocurrency’s rapid appreciation has many investors questioning the place of stocks in their portfolios. But there are numerous differences between stocks and cryptocurrencies . The most important is that a stock is an ownership interest in a business (backed by the company’s assets and cash flow), whereas cryptocurrency, in most cases, is not backed by anything at all. If you’re buying cryptocurrencies, it’s important to understand what you’re purchasing and how they compare to traditional investments such as stocks, which have a solid long-term track record. Cryptocurrency vs. stocks: How they compare Any savvy investor needs to know exactly what they’re investing in. It’s crucial to weigh the risks and rewards of investing, and what will drive the investment’s success. If they don’t have this kind of information, they can’t make the calculation. In this case, it’s more like gambling than investing. Here are the key things investors need to know about stocks and cryptocurrency. Stocks A stock is a fractional ownership interest in a business. It’s easy to lose sight of this, if you become overwhelmed by the wiggling stock prices — and the potential for profit. As a legal ownership stake in the business, the stock gives shareholders a claim on the assets and cash flow of the business. These back your investment and provide a basis for its valuation. Why stocks rise and fall A stock price moves as investors assess the future success of the company. While investors may become overly optimistic about the stock in the short term, the stock price ultimately depends on the company’s ability to grow its profits over the long term. That is, a stock rises in the long term due to the success of the underlying company . For a stock to be a successful investment, the underlying company must perform well over time. (Here’s a step-by-step guide on how to invest in stocks .) Cryptocurrency Cryptocurrency has taken the world by storm, especially during the last few years. After having topped out around $3 trillion in 2021 and falling in 2022, the total value of all these digital currencies now sits at about $3.4 trillion as of July 2025, according to CoinMarketCap.com. Of these, Bitcoin is the most popular, worth more than $2.1 trillion itself. Investors have swarmed to this digital gold rush, often with little knowledge and a lot of hope. Generally, cryptocurrency is backed by no hard assets (specialized stablecoins being an exception), and that’s the case for the most popular crypto coins such as Bitcoin and Ethereum . A cryptocurrency may allow you to perform certain functions, such as sending money to another person or using smart contracts that automatically execute after specific conditions are met. Why cryptocurrencies rise and fall Because cryptocurrency is not backed by assets or cash flow, the only thing moving crypto prices is speculation driven by sentiment. As sentiment changes, prices shift — sometimes drastically. So cryptocurrency is driven only by the hope that someone will buy it for more in the future — what’s called the “greater fool theory of investing.” For a cryptocurrency to be a successful investment, you must get someone to buy it from you for more than you paid for it. That is, the market must be more optimistic about it than you are. Pros and cons of investing in cryptocurrency vs. stocks Pros of investing in cryptocurrency Possible hedge against fiat currency: For some investors, one of the biggest appeals of cryptocurrency is its decentralized nature. It’s not controlled by central banks or governments who like to print money and generate inflation in fiat currencies such as the U.S. dollar or the euro. Cryptocurrency has been called “digital gold” by some investors who hold it because they think it will protect them from inflation. Potential for outsized returns: Buying cryptocurrencies creates the potential for large gains on your investment. Several cryptocurrencies have seen their prices skyrocket since first being introduced. These gains are the main reason people are attracted to cryptocurrencies, but the potential for price appreciation comes with significant risk. Growing number of coins: In the early days of cryptocurrencies, there were just a few coins that could be invested in, but speculative interest has changed that. New coins are introduced regularly and there are now thousands to choose from. Wide interest in digital currencies: There seems to be a growing interest in cryptocurrencies from investors, companies and governments. Tesla holds Bitcoin on its balance sheet and briefly accepted the digital currency as payment before reversing course. El Salvador adopted Bitcoin as legal tender in 2021, though the International Monetary Fund has urged the country to reverse its decision. Increasing acceptance of digital currencies could be positive for investors. Possible hedge against fiat currency: For some investors, one of the biggest appeals of cryptocurrency is its decentralized nature. It’s not controlled by central banks or governments who like to print money and generate inflation in fiat currencies such as the U.S. dollar or the euro. Cryptocurrency has been called “digital gold” by some investors who hold it because they think it will protect them from inflation. Potential for outsized returns: Buying cryptocurrencies creates the potential for large gains on your investment. Several cryptocurrencies have seen their prices skyrocket since first being introduced. These gains are the main reason people are attracted to cryptocurrencies, but the potential for price appreciation comes with significant risk. Growing number of coins: In the early days of cryptocurrencies, there were just a few coins that could be invested in, but speculative interest has changed that. New coins are introduced regularly and there are now thousands to choose from. Wide interest in digital currencies: There seems to be a growing interest in cryptocurrencies from investors, companies and governments. Tesla holds Bitcoin on its balance sheet and briefly accepted the digital currency as payment before reversing course. El Salvador adopted Bitcoin as legal tender in 2021, though the International Monetary Fund has urged the country to reverse its decision. Increasing acceptance of digital currencies could be positive for investors. Cons of investing in cryptocurrency Extreme volatility: Cryptocurrencies have been extremely volatile so far in their relatively young existence. They aren’t backed by anything, so the price they trade at is determined by the whims of traders. Fortunes can be made and lost quickly and there’s no telling where a coin might trade next. Cybersecurity risks: Despite cryptocurrency enthusiasts touting the security benefits of digital coins, there have been notable hacks involving cryptocurrencies. It is often difficult to recover stolen funds. No intrinsic value: Cryptocurrencies have no intrinsic value, which means they aren’t backed by underlying assets or earnings the way that stocks are. Stocks have value because of their future earnings power and what they will return for their owners, while cryptocurrencies offer nothing of the sort. Regulatory risks: While El Salvador has embraced Bitcoin, many governments are much more skeptical about cryptocurrencies. China has banned them altogether, other countries could follow and the U.S. is regulating them , though President-elect Trump is expected to have a crypto-friendly administration. Extreme volatility: Cryptocurrencies have been extremely volatile so far in their relatively young existence. They aren’t backed by anything, so the price they trade at is determined by the whims of traders. Fortunes can be made and lost quickly and there’s no telling where a coin might trade next. Cybersecurity risks: Despite cryptocurrency enthusiasts touting the security benefits of digital coins, there have been notable hacks involving cryptocurrencies. It is often difficult to recover stolen funds. No intrinsic value: Cryptocurrencies have no intrinsic value, which means they aren’t backed by underlying assets or earnings the way that stocks are. Stocks have value because of their future earnings power and what they will return for their owners, while cryptocurrencies offer nothing of the sort. Regulatory risks: While El Salvador has embraced Bitcoin, many governments are much more skeptical about cryptocurrencies. China has banned them altogether, other countries could follow and the U.S. is regulating them , though President-elect Trump is expected to have a crypto-friendly administration. Pros of investing in stocks Long history of solid returns: Stocks have a long track record of producing solid investment returns, with the S&P 500 stock index returning about 10 percent over the long-term. Though stocks can be volatile in the short term, they have generally been safe to hold over long periods of time. Have intrinsic value: A stock represents an ownership interest in a company and its value over time depends on the success of the underlying company. Companies own assets that produce earnings and cash flow for investors, creating what’s known as intrinsic value. Accessible: It is easier than ever to invest in stocks these days with many online brokers cutting trading fees to zero. You can invest in individual stocks or choose to purchase a diversified basket of stocks through an index fund. Index funds help keep costs low and you can build a diversified portfolio even if you don’t have much money to start with. Stronger regulation: Stock exchanges, brokers and companies are all heavily regulated through various government agencies. Companies are required to provide certain information to investors through the Securities and Exchange Commission. No regulatory body is perfect, but stocks have been around for a long time and there are certain important investor protections in place. Cons of investing in stocks Volatile: When you hold a broad basket of stocks through index funds , stocks are less volatile than cryptocurrencies. Individual stocks can be more volatile, but typically less so than cryptocurrencies. Because of this volatility, stocks are best held as part of a long-term investment plan, so you have time to recover from any short-term losses. Lower potential for extreme gains: Broad stock indexes such as the S&P 500 likely have less potential for the extreme gains that can sometimes be found among cryptocurrencies. Stocks have returned about 10 percent per year over the long term, whereas it’s not uncommon for cryptocurrencies to move 10 percent in a single day. Other considerations when investing in stocks vs. crypto Time horizon Your time horizon — when you need the money from an investment — is a key criterion. The shorter your timeline, the safer your asset should be, so that it’s there when you need it. The more volatile an asset, the less suited it is for those with a short timeline. Generally, experts suggest investors in risky assets such as stocks need at least three years to ride out volatility. Stocks Stocks are often volatile, but they tend to be less volatile than crypto. Individual stocks are more volatile than a portfolio of stocks, which tends to benefit from diversification . Stocks are better suited to investors who can leave their money alone and don’t need to access it. Generally, the longer you can leave it invested, the better. Some stocks can be more volatile than others. For example, growth stocks tend to fluctuate much more than value stocks or dividend stocks . Investors may shift from more aggressive stocks (growth stocks) to safer ones (dividend stocks) as they need to tap their money, such as when they approach retirement. Cryptocurrency While stocks are volatile, cryptocurrency is ridiculously volatile. For example, during 2021, Bitcoin lost more than half its value in a few months and later gained 100 percent. Such volatility makes crypto unsuited for short-term investors. Crypto is better suited to traders who can leave their money tied up and wait for it to recover. Think years rather than weeks. Portfolio management As you’re thinking about constructing your portfolio, you don’t have to make an either-or choice between cryptocurrency and stocks — or other kinds of asset such as bonds or funds, either. It’s all about weighting your portfolio in a way that fits your risk and time horizon. Cryptocurrency Given its inherent risks, cryptocurrency works better with a small allocation in your overall portfolio. Think 5 percent or less. Even a small allocation could do wonders for your portfolio if cryptocurrency really takes off. Also, limiting to a small allocation protects you against a complete loss if crypto prices collapse. If crypto grows to be a significant portion of your portfolio, you can re-allocate more of your money to stocks to lower your portfolio’s overall risk. Stocks Given stocks’ strong long-term record, a diversified collection of stocks should make up the majority of your portfolio, especially if you have decades until you need to tap it. If you’re investing in individual stocks, you’ll need to research your stocks carefully to achieve good returns. If you’re investing in funds, you can buy a broadly diversified fund such as an S&P 500 index fund without significant research and enjoy the potential for high returns. Which is safer, stocks or crypto? When it comes to safety, both stocks and cryptocurrencies present their unique set of risks. Stocks, backed by a company’s assets and cash flow, have a long history of delivering solid returns. They are regulated by government bodies and have investor protections in place. However, market volatility, business decisions, and international events can impact stock investments. On the other hand, cryptocurrencies, while offering the potential for substantial gains, are highly volatile and lack the backing of tangible assets. They also pose risks such as cybersecurity threats and regulatory uncertainties. Therefore, the safety of these investments largely depends on your personal risk tolerance and financial goals. A broadly diversified stock portfolio generally presents a safer option than cryptocurrencies because of their intrinsic value and history of delivering solid long-term returns. Cryptocurrencies may hold greater potential for outsized gains, but come with significant risk. Bottom line Some cryptocurrencies have soared in price since being introduced over the past few years, but investors need to understand what they’re investing in, instead of just rushing in because other traders are, a symptom of FOMO syndrome (fear of missing out). If you decide to take a stake in crypto, consider how it fits with your own risk tolerance and financial needs. Investors can earn good returns without investing in cryptocurrency, and some investors, including legends such as Warren Buffett, won’t touch cryptocurrency . — Bankrate’s Brian Baker, CFA , contributed to an update of this article. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. Did you find this page helpful? Info Icon Help us improve our content

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[Investing](https://www.bankrate.com/investing/) › 2. Crypto vs. stocks: What’s the better choice for you? Advertiser Disclosure # Crypto vs. stocks: What’s the better choice for you? ![James Royal, Ph.D.](https://www.bankrate.com/2021/10/26151853/James-Royal-headshot-scaled-square.jpg?auto=webp&quality=85&width=24&height=24&fit=cover&enable=upscale&crop=1:1,smart) ![Lisa Dammeyer](https://www.bankrate.com/brp/2024/09/24170827/Lisa-Dammeyer-1.jpg?auto=webp&quality=85&width=24&height=24&fit=cover&enable=upscale&crop=1:1,smart) Written by James Royal, Ph.D. , ![](https://www.bankrate.com/2021/10/26151853/James-Royal-headshot-scaled-square.jpg?auto=webp&quality=85&width=64&height=64&fit=cover&enable=upscale&crop=1:1,smart) [James Royal, Ph.D.](https://www.bankrate.com/authors/james-royal/) Former Principal Writer, Investing and Wealth Management Expertise - • Investing - • Wealth management Former Bankrate principal writer and editor James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more. [Read more](https://www.bankrate.com/authors/james-royal/) - [Connect with James Royal, Ph.D. on Twitter](https://twitter.com/JimRoyalPhD) - [Connect with James Royal, Ph.D. on LinkedIn](https://www.linkedin.com/in/james-royal-phd-809b929/) - [Get in contact with James Royal, Ph.D. via Email](mailto:jroyal@redventures.com) Close [James Royal, Ph.D.](https://www.bankrate.com/authors/james-royal/), Edited by Lisa Dammeyer ![](https://www.bankrate.com/brp/2024/09/24170827/Lisa-Dammeyer-1.jpg?auto=webp&quality=85&width=64&height=64&fit=cover&enable=upscale&crop=1:1,smart) [Lisa Dammeyer](https://www.bankrate.com/authors/lisa-dammeyer/) Former Editor, Investing Expertise - • Investing - • Retirement planning Lisa Dammeyer is a former investing editor at Bankrate. She has more than six years of experience distilling down complex topics for everyday people. [Read more](https://www.bankrate.com/authors/lisa-dammeyer/) Close [Lisa Dammeyer](https://www.bankrate.com/authors/lisa-dammeyer/) Published on July 15, 2025 \| 5 min read Bankrate is always editorially independent. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money . Our Bankrate promise is to ensure everything we publish is objective, accurate and trustworthy. ![A bitcoin sits next to a stock certificate.](https://www.bankrate.com/brp/2024/11/15133026/Investments-Crypto-vs-stocks-Whats-the-better-choice-for-you-1.jpg?auto=webp&optimize=high&crop=16:9) Illustration by Bankrate Table of contents - [Cryptocurrency vs. stocks: How they compare](https://www.bankrate.com/investing/crypto-vs-stocks/#should-you-invest-in-cryptocurrency-or-stocks) - [Pros and cons of investing in cryptocurrency vs. stocks](https://www.bankrate.com/investing/crypto-vs-stocks/#pros-and-cons-of-investing-in-cryptocurrency-vs-stocks) - [Other considerations when investing in stocks vs. crypto](https://www.bankrate.com/investing/crypto-vs-stocks/#other-considerations-when-investing-in-stocks-vs-crypto) - [Which is safer, stocks or crypto?](https://www.bankrate.com/investing/crypto-vs-stocks/#which-is-safer-stocks-or-crypto) Table of contents Back to top Cryptocurrency’s rapid appreciation has many investors questioning the place of stocks in their portfolios. But there are numerous differences between stocks and [cryptocurrencies](https://www.bankrate.com/investing/what-is-cryptocurrency/). The most important is that a stock is an ownership interest in a business (backed by the company’s assets and cash flow), whereas cryptocurrency, in most cases, is not backed by anything at all. If you’re buying cryptocurrencies, it’s important to understand what you’re purchasing and how they compare to traditional investments such as stocks, which have a solid long-term track record. Compare advisors: [Bankrate's list of the best financial advisors](https://www.bankrate.com/investing/financial-advisors/best-financial-advisors/) ## Cryptocurrency vs. stocks: How they compare Any savvy investor needs to know exactly what they’re investing in. It’s crucial to weigh the risks and rewards of investing, and what will drive the investment’s success. If they don’t have this kind of information, they can’t make the calculation. In this case, it’s more like gambling than investing. Here are the key things investors need to know about stocks and cryptocurrency. ### Stocks A stock is a fractional ownership interest in a business. It’s easy to lose sight of this, if you become overwhelmed by the wiggling stock prices — and the potential for profit. As a legal ownership stake in the business, the stock gives shareholders a claim on the assets and cash flow of the business. These back your investment and provide a basis for its valuation. ### Why stocks rise and fall A stock price moves as investors assess the future success of the company. While investors may become overly optimistic about the stock in the short term, the stock price ultimately depends on the company’s ability to grow its profits over the long term. That is, a stock rises in the long term [due to the success of the underlying company](https://www.bankrate.com/investing/what-makes-a-stock-go-up-in-price/). For a stock to be a successful investment, the underlying company must perform well over time. (Here’s a [step-by-step guide on how to invest in stocks](https://www.bankrate.com/investing/how-to-invest-in-stocks/).) ### Cryptocurrency Cryptocurrency has taken the world by storm, especially during the last few years. After having topped out around \$3 trillion in 2021 and falling in 2022, the total value of all these digital currencies now sits at about \$3.4 trillion as of July 2025, according to CoinMarketCap.com. Of these, [Bitcoin](https://www.bankrate.com/investing/what-is-bitcoin/) is the most popular, worth more than \$2.1 trillion itself. Investors have swarmed to this digital gold rush, often with little knowledge and a lot of hope. Generally, cryptocurrency is backed by no hard assets (specialized [stablecoins](https://www.bankrate.com/investing/stablecoin-cryptocurrency/) being an exception), and that’s the case for the [most popular crypto coins](https://www.bankrate.com/investing/types-of-cryptocurrency/) such as Bitcoin and [Ethereum](https://www.bankrate.com/investing/what-is-ethereum/). A cryptocurrency may allow you to perform certain functions, such as sending money to another person or using smart contracts that automatically execute after specific conditions are met. ### Why cryptocurrencies rise and fall Because cryptocurrency is not backed by assets or cash flow, the only thing moving crypto prices is speculation driven by sentiment. As sentiment changes, prices shift — sometimes drastically. So cryptocurrency is driven only by the hope that someone will buy it for more in the future — what’s called the “greater fool theory of investing.” For a cryptocurrency to be a successful investment, you must get someone to buy it from you for more than you paid for it. That is, the market must be more optimistic about it than you are. Learn more: [Bankrate's beginner guide to investing in cryptocurrency](https://www.bankrate.com/investing/how-to-invest-in-cryptocurrency-beginners-guide/) ![](https://navi.cohesionapps.com/display?write_key=wk_2M3TlVcWbz8i1RTZjLkSmbWfyQC&adId=ffdc152c6d&req=https%3A%2F%2Fwww.bankrate.com%2Finvesting%2Fcrypto-vs-stocks%2F&ref=) ## Pros and cons of investing in cryptocurrency vs. stocks ### Pros of investing in cryptocurrency - **Possible hedge against fiat currency:** For some investors, one of the biggest appeals of cryptocurrency is its decentralized nature. It’s not controlled by central banks or governments who like to print money and generate inflation in fiat currencies such as the U.S. dollar or the euro. Cryptocurrency has been called “digital gold” by some investors who hold it because they think it will protect them from inflation. - **Potential for outsized returns:** Buying cryptocurrencies creates the potential for large gains on your investment. Several cryptocurrencies have seen their prices skyrocket since first being introduced. These gains are the main reason people are attracted to cryptocurrencies, but the potential for price appreciation comes with significant risk. - **Growing number of coins:** In the early days of cryptocurrencies, there were just a few coins that could be invested in, but speculative interest has changed that. [New coins are introduced regularly](https://www.bankrate.com/investing/what-are-altcoins/) and there are now thousands to choose from. - **Wide interest in digital currencies:** There seems to be a growing interest in cryptocurrencies from investors, companies and governments. Tesla holds Bitcoin on its balance sheet and briefly accepted the digital currency as payment before reversing course. El Salvador adopted Bitcoin as legal tender in 2021, though the International Monetary Fund has urged the country to reverse its decision. Increasing acceptance of digital currencies could be positive for investors. - **Possible hedge against fiat currency:** For some investors, one of the biggest appeals of cryptocurrency is its decentralized nature. It’s not controlled by central banks or governments who like to print money and generate inflation in fiat currencies such as the U.S. dollar or the euro. Cryptocurrency has been called “digital gold” by some investors who hold it because they think it will protect them from inflation. - **Potential for outsized returns:** Buying cryptocurrencies creates the potential for large gains on your investment. Several cryptocurrencies have seen their prices skyrocket since first being introduced. These gains are the main reason people are attracted to cryptocurrencies, but the potential for price appreciation comes with significant risk. - **Growing number of coins:** In the early days of cryptocurrencies, there were just a few coins that could be invested in, but speculative interest has changed that. [New coins are introduced regularly](https://www.bankrate.com/investing/what-are-altcoins/) and there are now thousands to choose from. - **Wide interest in digital currencies:** There seems to be a growing interest in cryptocurrencies from investors, companies and governments. Tesla holds Bitcoin on its balance sheet and briefly accepted the digital currency as payment before reversing course. El Salvador adopted Bitcoin as legal tender in 2021, though the International Monetary Fund has urged the country to reverse its decision. Increasing acceptance of digital currencies could be positive for investors. ### Cons of investing in cryptocurrency - **Extreme volatility:** Cryptocurrencies have been extremely volatile so far in their relatively young existence. They aren’t backed by anything, so the price they trade at is determined by the whims of traders. Fortunes can be made and lost quickly and there’s no telling where a coin might trade next. - **Cybersecurity risks:** Despite cryptocurrency enthusiasts touting the security benefits of digital coins, there have been notable hacks involving cryptocurrencies. It is often difficult to recover stolen funds. - **No intrinsic value:** Cryptocurrencies have no intrinsic value, which means they aren’t backed by underlying assets or earnings the way that stocks are. Stocks have value because of their future earnings power and what they will return for their owners, while cryptocurrencies offer nothing of the sort. - **Regulatory risks:** While El Salvador has embraced Bitcoin, many governments are much more skeptical about cryptocurrencies. China has banned them altogether, other countries could follow and the [U.S. is regulating them](https://www.bankrate.com/investing/president-biden-executive-order-on-crypto-what-it-means-for-you/), though President-elect Trump is expected to have a crypto-friendly administration. - **Extreme volatility:** Cryptocurrencies have been extremely volatile so far in their relatively young existence. They aren’t backed by anything, so the price they trade at is determined by the whims of traders. Fortunes can be made and lost quickly and there’s no telling where a coin might trade next. - **Cybersecurity risks:** Despite cryptocurrency enthusiasts touting the security benefits of digital coins, there have been notable hacks involving cryptocurrencies. It is often difficult to recover stolen funds. - **No intrinsic value:** Cryptocurrencies have no intrinsic value, which means they aren’t backed by underlying assets or earnings the way that stocks are. Stocks have value because of their future earnings power and what they will return for their owners, while cryptocurrencies offer nothing of the sort. - **Regulatory risks:** While El Salvador has embraced Bitcoin, many governments are much more skeptical about cryptocurrencies. China has banned them altogether, other countries could follow and the [U.S. is regulating them](https://www.bankrate.com/investing/president-biden-executive-order-on-crypto-what-it-means-for-you/), though President-elect Trump is expected to have a crypto-friendly administration. ### Pros of investing in stocks - **Long history of solid returns:** Stocks have a long track record of producing solid investment returns, with the S\&P 500 stock index returning about 10 percent over the long-term. Though [stocks can be volatile](https://www.bankrate.com/investing/best-performing-stocks/) in the short term, they have generally been safe to hold over long periods of time. - **Have intrinsic value:** A stock represents an ownership interest in a company and its value over time depends on the success of the underlying company. Companies own assets that produce earnings and cash flow for investors, creating what’s known as intrinsic value. - **Accessible:** It is easier than ever to invest in stocks these days with many [online brokers](https://www.bankrate.com/investing/best-online-brokers-for-stock-trading/) cutting trading fees to zero. You can invest in individual stocks or choose to purchase a diversified basket of stocks through an index fund. Index funds help keep costs low and you can build a diversified portfolio even if you don’t have much money to start with. - **Stronger regulation:** Stock exchanges, brokers and companies are all heavily regulated through various government agencies. Companies are required to [provide certain information to investors](https://www.bankrate.com/investing/sec-filings-stock-investors-should-know/) through the Securities and Exchange Commission. No regulatory body is perfect, but stocks have been around for a long time and there are certain important investor protections in place. ### Cons of investing in stocks - **Volatile:** When you hold a broad basket of stocks through [index funds](https://www.bankrate.com/investing/low-cost-index-funds-guide/), stocks are less volatile than cryptocurrencies. Individual stocks can be more volatile, but typically less so than cryptocurrencies. Because of this volatility, stocks are best held as part of a long-term investment plan, so you have time to recover from any short-term losses. - **Lower potential for extreme gains:** Broad stock indexes such as the [S\&P 500](https://www.bankrate.com/investing/what-is-sp-500/) likely have less potential for the extreme gains that can sometimes be found among cryptocurrencies. Stocks have returned about 10 percent per year over the long term, whereas it’s not uncommon for cryptocurrencies to move 10 percent in a single day. Get started: [Match with an advisor who can help you achieve your financial goals](https://advisormatch.bankrate.com/questionnaire?am_type=BR&amp%3Butm_source=BRarticle) ![](https://navi.cohesionapps.com/display?write_key=wk_2M3TlVcWbz8i1RTZjLkSmbWfyQC&adId=a7454f5959&req=https%3A%2F%2Fwww.bankrate.com%2Finvesting%2Fcrypto-vs-stocks%2F&ref=) ## Other considerations when investing in stocks vs. crypto ### Time horizon Your time horizon — when you need the money from an investment — is a key criterion. The shorter your timeline, the safer your asset should be, so that it’s there when you need it. The more volatile an asset, the less suited it is for those with a short timeline. Generally, experts suggest investors in risky assets such as stocks need at least three years to ride out volatility. #### Stocks - Stocks are often volatile, but they tend to be less volatile than crypto. Individual stocks are more volatile than a portfolio of stocks, which tends to benefit from [diversification](https://www.bankrate.com/investing/diversification-is-important-in-investing/). - Stocks are better suited to investors who can leave their money alone and don’t need to access it. Generally, the longer you can leave it invested, the better. - Some stocks can be more volatile than others. For example, growth stocks tend to fluctuate much more than value stocks or [dividend stocks](https://www.bankrate.com/investing/how-to-invest-in-dividend-stocks/). - Investors may shift from more aggressive stocks (growth stocks) to safer ones (dividend stocks) as they need to tap their money, such as when they approach retirement. #### Cryptocurrency - While stocks are volatile, cryptocurrency is ridiculously volatile. For example, during 2021, Bitcoin lost more than half its value in a few months and later gained 100 percent. Such volatility makes crypto unsuited for short-term investors. - Crypto is better suited to traders who can leave their money tied up and wait for it to recover. Think years rather than weeks. ### Portfolio management As you’re thinking about constructing your portfolio, you don’t have to make an either-or choice between cryptocurrency and stocks — or other kinds of asset such as [bonds](https://www.bankrate.com/investing/how-to-invest-in-bonds/) or funds, either. It’s all about weighting your portfolio in a way that fits your risk and time horizon. #### Cryptocurrency - Given its inherent risks, cryptocurrency works better with a small allocation in your overall portfolio. Think 5 percent or less. - Even a small allocation could do wonders for your portfolio if cryptocurrency really takes off. Also, limiting to a small allocation protects you against a complete loss if crypto prices collapse. - If crypto grows to be a significant portion of your portfolio, you can re-allocate more of your money to stocks to lower your portfolio’s overall risk. #### Stocks - Given stocks’ strong long-term record, a diversified collection of stocks should make up the majority of your portfolio, especially if you have decades until you need to tap it. - If you’re investing in individual stocks, you’ll need to research your stocks carefully to achieve good returns. - If you’re investing in funds, you can buy a broadly diversified fund such as [an S\&P 500 index fund](https://www.bankrate.com/investing/how-to-buy-sp-500-index-fund/) without significant research and enjoy the potential for high returns. ## Which is safer, stocks or crypto? When it comes to safety, both stocks and cryptocurrencies present their unique set of risks. Stocks, backed by a company’s assets and cash flow, have a long history of delivering solid returns. They are regulated by government bodies and have investor protections in place. However, market volatility, business decisions, and international events can impact stock investments. On the other hand, cryptocurrencies, while offering the potential for substantial gains, are highly volatile and lack the backing of tangible assets. They also pose risks such as cybersecurity threats and regulatory uncertainties. Therefore, the safety of these investments largely depends on your personal risk tolerance and financial goals. A broadly diversified stock portfolio generally presents a safer option than cryptocurrencies because of their intrinsic value and history of delivering solid long-term returns. Cryptocurrencies may hold greater potential for outsized gains, but come with significant risk. Learn more: [How to build a financial plan for you and your family](https://www.bankrate.com/investing/financial-advisors/what-is-financial-planning/) ## Bottom line Some cryptocurrencies have soared in price since being introduced over the past few years, but investors need to understand what they’re investing in, instead of just rushing in because other traders are, a symptom of FOMO syndrome (fear of missing out). If you decide to take a stake in crypto, consider how it fits with your own risk tolerance and financial needs. Investors can earn good returns without investing in cryptocurrency, and some investors, including legends such as [Warren Buffett, won’t touch cryptocurrency](https://www.bankrate.com/investing/good-investment-advice-to-follow/). — *Bankrate’s [Brian Baker, CFA](https://www.bankrate.com/authors/brian-baker-cfa/), contributed to an update of this article.* *Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.* Did you find this page helpful? **Why we ask for feedback** Your feedback helps us improve our content and services. It takes less than a minute to complete. Your responses are anonymous and will only be used for improving our website. Help us improve our content Yes No Thank you for your feedback\! Your input helps us improve our content and services. Cite us Share this article Share this article Close ![](https://www.bankrate.com/2021/10/26151853/James-Royal-headshot-scaled-square.jpg?auto=webp&quality=85&width=96&height=96&fit=cover&enable=upscale&crop=1:1,smart) Written by [James Royal, Ph.D.](https://www.bankrate.com/authors/james-royal/) Former Principal Writer, Investing and Wealth Management - [Connect with James Royal, Ph.D. on Twitter](https://twitter.com/JimRoyalPhD) - [Connect with James Royal, Ph.D. on LinkedIn](https://www.linkedin.com/in/james-royal-phd-809b929/) - [Get in contact with James Royal, Ph.D. via Email](mailto:jroyal@redventures.com) [Read more from James](https://www.bankrate.com/authors/james-royal/) Former Bankrate principal writer and editor James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more. ![A bitcoin sits next to a stock certificate.](https://www.bankrate.com/brp/2024/11/15133026/Investments-Crypto-vs-stocks-Whats-the-better-choice-for-you-1.jpg?auto=webp&optimize=high&crop=16:9) Illustration by Bankrate Bankrate is always editorially independent. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money . Our Bankrate promise is to ensure everything we publish is objective, accurate and trustworthy. Table of contents - [Cryptocurrency vs. stocks: How they compare](https://www.bankrate.com/investing/crypto-vs-stocks/#should-you-invest-in-cryptocurrency-or-stocks) - [Pros and cons of investing in cryptocurrency vs. stocks](https://www.bankrate.com/investing/crypto-vs-stocks/#pros-and-cons-of-investing-in-cryptocurrency-vs-stocks) - [Other considerations when investing in stocks vs. crypto](https://www.bankrate.com/investing/crypto-vs-stocks/#other-considerations-when-investing-in-stocks-vs-crypto) - [Which is safer, stocks or crypto?](https://www.bankrate.com/investing/crypto-vs-stocks/#which-is-safer-stocks-or-crypto) Back to top ## You may also like ![Older couple looking out of the window](https://www.bankrate.com/2017/12/19131021/home-equity-loan-heloc-or-reverse-mortgage-what-is-the-best-for-you.jpg) [Home equity loan or HELOC vs. reverse mortgage: Which is right for you?](https://www.bankrate.com/home-equity/home-equity-loan-heloc-vs-reverse-mortgage/) Home Equity By [Erik J. Martin](https://www.bankrate.com/authors/erik-j-martin/) 9 min read ![A picture of golden Bitcoins](https://www.bankrate.com/2021/10/19101959/The-first-Bitcoin-futures-ETF-is-here.jpeg) [Bitcoin ETFs: What they are and how to invest in them](https://www.bankrate.com/investing/bitcoin-etfs/) Investing By [Brian Baker, CFA](https://www.bankrate.com/authors/brian-baker-cfa/) 3 min read ![A woman works on her laptop while holding her phone and looking at papers.](https://www.bankrate.com/brp/2024/04/24160259/mutual-funds-vs-etfs-300x169.jpg) [ETF vs. mutual fund: Which is the better investment?](https://www.bankrate.com/investing/mutual-fund-vs-etf-which-is-better/) Investing By [James Royal, Ph.D.](https://www.bankrate.com/authors/james-royal/) 10 min read ![Bitcoin and Ethereum cryptocurrency with candle stick graph chart](https://www.bankrate.com/brp/2024/09/12185346/Day-trading-crypto-300x169.jpg) [Day trading crypto: 9 essential things to know before starting to buy and sell](https://www.bankrate.com/investing/day-trading-crypto/) Investing By [James Royal, Ph.D.](https://www.bankrate.com/authors/james-royal/) 6 min read ## [Bankrate logo](https://www.bankrate.com/) ### About - [About us](https://www.bankrate.com/about/) - [Leadership](https://www.bankrate.com/leadership/) - [Press room](https://www.bankrate.com/press-releases/) - [Bankrate Data Center](https://www.bankrate.com/data-center/) - [Careers](https://www.bankrate.com/careers/) - [Site map](https://www.bankrate.com/corporate/site-map/) ### Help - [Compare rates](https://www.bankrate.com/compare-rates/) - [Latest news](https://www.bankrate.com/news/) - [Popular topics](https://www.bankrate.com/popular-finance-topics/) - [Advertise with us](https://www.bankrate.com/media-kit/) ### Legal - [Privacy policy](https://www.bankrate.com/privacy/) - Cookie settings - [Do Not Sell or Share My Personal Information](https://www.bankrate.com/do-not-sell-or-share-my-personal-information/) - [Consumer Health Information Privacy Policy](https://www.bankrate.com/consumer-health-information-privacy-policy/) - [Understanding Bankrate’s averages](https://www.bankrate.com/understanding-bankrates-rate-averages/) - [Terms of use](https://www.bankrate.com/terms/) - [GLBA annual notice](https://www.bankrate.com/glba-notice/) - [California Consumer Financial Privacy Notice](https://www.bankrate.com/2022/02/15094901/california-notice.pdf) - [Licenses](https://www.bankrate.com/licenses/) ### How we make money Bankrate.com is an independent, advertising-supported publisher and comparison service. 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Table of contents - [Cryptocurrency vs. stocks: How they compare](https://www.bankrate.com/investing/crypto-vs-stocks/#should-you-invest-in-cryptocurrency-or-stocks) - [Pros and cons of investing in cryptocurrency vs. stocks](https://www.bankrate.com/investing/crypto-vs-stocks/#pros-and-cons-of-investing-in-cryptocurrency-vs-stocks) - [Other considerations when investing in stocks vs. crypto](https://www.bankrate.com/investing/crypto-vs-stocks/#other-considerations-when-investing-in-stocks-vs-crypto) - [Which is safer, stocks or crypto?](https://www.bankrate.com/investing/crypto-vs-stocks/#which-is-safer-stocks-or-crypto) **Quick citation guide** Select a citation to automatically copy to clipboard. **APA:** Royal, J. (2025, July 15). *Crypto vs. stocks: What’s the better choice for you?* Bankrate. Retrieved April 23, 2026, from https://www.bankrate.com/investing/crypto-vs-stocks/ Copied to clipboard\! **MLA:** Royal, James. 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Cryptocurrency’s rapid appreciation has many investors questioning the place of stocks in their portfolios. But there are numerous differences between stocks and [cryptocurrencies](https://www.bankrate.com/investing/what-is-cryptocurrency/). The most important is that a stock is an ownership interest in a business (backed by the company’s assets and cash flow), whereas cryptocurrency, in most cases, is not backed by anything at all. If you’re buying cryptocurrencies, it’s important to understand what you’re purchasing and how they compare to traditional investments such as stocks, which have a solid long-term track record. ## Cryptocurrency vs. stocks: How they compare Any savvy investor needs to know exactly what they’re investing in. It’s crucial to weigh the risks and rewards of investing, and what will drive the investment’s success. If they don’t have this kind of information, they can’t make the calculation. In this case, it’s more like gambling than investing. Here are the key things investors need to know about stocks and cryptocurrency. ### Stocks A stock is a fractional ownership interest in a business. It’s easy to lose sight of this, if you become overwhelmed by the wiggling stock prices — and the potential for profit. As a legal ownership stake in the business, the stock gives shareholders a claim on the assets and cash flow of the business. These back your investment and provide a basis for its valuation. ### Why stocks rise and fall A stock price moves as investors assess the future success of the company. While investors may become overly optimistic about the stock in the short term, the stock price ultimately depends on the company’s ability to grow its profits over the long term. That is, a stock rises in the long term [due to the success of the underlying company](https://www.bankrate.com/investing/what-makes-a-stock-go-up-in-price/). For a stock to be a successful investment, the underlying company must perform well over time. (Here’s a [step-by-step guide on how to invest in stocks](https://www.bankrate.com/investing/how-to-invest-in-stocks/).) ### Cryptocurrency Cryptocurrency has taken the world by storm, especially during the last few years. After having topped out around \$3 trillion in 2021 and falling in 2022, the total value of all these digital currencies now sits at about \$3.4 trillion as of July 2025, according to CoinMarketCap.com. Of these, [Bitcoin](https://www.bankrate.com/investing/what-is-bitcoin/) is the most popular, worth more than \$2.1 trillion itself. Investors have swarmed to this digital gold rush, often with little knowledge and a lot of hope. Generally, cryptocurrency is backed by no hard assets (specialized [stablecoins](https://www.bankrate.com/investing/stablecoin-cryptocurrency/) being an exception), and that’s the case for the [most popular crypto coins](https://www.bankrate.com/investing/types-of-cryptocurrency/) such as Bitcoin and [Ethereum](https://www.bankrate.com/investing/what-is-ethereum/). A cryptocurrency may allow you to perform certain functions, such as sending money to another person or using smart contracts that automatically execute after specific conditions are met. ### Why cryptocurrencies rise and fall Because cryptocurrency is not backed by assets or cash flow, the only thing moving crypto prices is speculation driven by sentiment. As sentiment changes, prices shift — sometimes drastically. So cryptocurrency is driven only by the hope that someone will buy it for more in the future — what’s called the “greater fool theory of investing.” For a cryptocurrency to be a successful investment, you must get someone to buy it from you for more than you paid for it. That is, the market must be more optimistic about it than you are. ## Pros and cons of investing in cryptocurrency vs. stocks ### Pros of investing in cryptocurrency - **Possible hedge against fiat currency:** For some investors, one of the biggest appeals of cryptocurrency is its decentralized nature. It’s not controlled by central banks or governments who like to print money and generate inflation in fiat currencies such as the U.S. dollar or the euro. Cryptocurrency has been called “digital gold” by some investors who hold it because they think it will protect them from inflation. - **Potential for outsized returns:** Buying cryptocurrencies creates the potential for large gains on your investment. Several cryptocurrencies have seen their prices skyrocket since first being introduced. These gains are the main reason people are attracted to cryptocurrencies, but the potential for price appreciation comes with significant risk. - **Growing number of coins:** In the early days of cryptocurrencies, there were just a few coins that could be invested in, but speculative interest has changed that. [New coins are introduced regularly](https://www.bankrate.com/investing/what-are-altcoins/) and there are now thousands to choose from. - **Wide interest in digital currencies:** There seems to be a growing interest in cryptocurrencies from investors, companies and governments. Tesla holds Bitcoin on its balance sheet and briefly accepted the digital currency as payment before reversing course. El Salvador adopted Bitcoin as legal tender in 2021, though the International Monetary Fund has urged the country to reverse its decision. Increasing acceptance of digital currencies could be positive for investors. - **Possible hedge against fiat currency:** For some investors, one of the biggest appeals of cryptocurrency is its decentralized nature. It’s not controlled by central banks or governments who like to print money and generate inflation in fiat currencies such as the U.S. dollar or the euro. Cryptocurrency has been called “digital gold” by some investors who hold it because they think it will protect them from inflation. - **Potential for outsized returns:** Buying cryptocurrencies creates the potential for large gains on your investment. Several cryptocurrencies have seen their prices skyrocket since first being introduced. These gains are the main reason people are attracted to cryptocurrencies, but the potential for price appreciation comes with significant risk. - **Growing number of coins:** In the early days of cryptocurrencies, there were just a few coins that could be invested in, but speculative interest has changed that. [New coins are introduced regularly](https://www.bankrate.com/investing/what-are-altcoins/) and there are now thousands to choose from. - **Wide interest in digital currencies:** There seems to be a growing interest in cryptocurrencies from investors, companies and governments. Tesla holds Bitcoin on its balance sheet and briefly accepted the digital currency as payment before reversing course. El Salvador adopted Bitcoin as legal tender in 2021, though the International Monetary Fund has urged the country to reverse its decision. Increasing acceptance of digital currencies could be positive for investors. ### Cons of investing in cryptocurrency - **Extreme volatility:** Cryptocurrencies have been extremely volatile so far in their relatively young existence. They aren’t backed by anything, so the price they trade at is determined by the whims of traders. Fortunes can be made and lost quickly and there’s no telling where a coin might trade next. - **Cybersecurity risks:** Despite cryptocurrency enthusiasts touting the security benefits of digital coins, there have been notable hacks involving cryptocurrencies. It is often difficult to recover stolen funds. - **No intrinsic value:** Cryptocurrencies have no intrinsic value, which means they aren’t backed by underlying assets or earnings the way that stocks are. Stocks have value because of their future earnings power and what they will return for their owners, while cryptocurrencies offer nothing of the sort. - **Regulatory risks:** While El Salvador has embraced Bitcoin, many governments are much more skeptical about cryptocurrencies. China has banned them altogether, other countries could follow and the [U.S. is regulating them](https://www.bankrate.com/investing/president-biden-executive-order-on-crypto-what-it-means-for-you/), though President-elect Trump is expected to have a crypto-friendly administration. - **Extreme volatility:** Cryptocurrencies have been extremely volatile so far in their relatively young existence. They aren’t backed by anything, so the price they trade at is determined by the whims of traders. Fortunes can be made and lost quickly and there’s no telling where a coin might trade next. - **Cybersecurity risks:** Despite cryptocurrency enthusiasts touting the security benefits of digital coins, there have been notable hacks involving cryptocurrencies. It is often difficult to recover stolen funds. - **No intrinsic value:** Cryptocurrencies have no intrinsic value, which means they aren’t backed by underlying assets or earnings the way that stocks are. Stocks have value because of their future earnings power and what they will return for their owners, while cryptocurrencies offer nothing of the sort. - **Regulatory risks:** While El Salvador has embraced Bitcoin, many governments are much more skeptical about cryptocurrencies. China has banned them altogether, other countries could follow and the [U.S. is regulating them](https://www.bankrate.com/investing/president-biden-executive-order-on-crypto-what-it-means-for-you/), though President-elect Trump is expected to have a crypto-friendly administration. ### Pros of investing in stocks - **Long history of solid returns:** Stocks have a long track record of producing solid investment returns, with the S\&P 500 stock index returning about 10 percent over the long-term. Though [stocks can be volatile](https://www.bankrate.com/investing/best-performing-stocks/) in the short term, they have generally been safe to hold over long periods of time. - **Have intrinsic value:** A stock represents an ownership interest in a company and its value over time depends on the success of the underlying company. Companies own assets that produce earnings and cash flow for investors, creating what’s known as intrinsic value. - **Accessible:** It is easier than ever to invest in stocks these days with many [online brokers](https://www.bankrate.com/investing/best-online-brokers-for-stock-trading/) cutting trading fees to zero. You can invest in individual stocks or choose to purchase a diversified basket of stocks through an index fund. Index funds help keep costs low and you can build a diversified portfolio even if you don’t have much money to start with. - **Stronger regulation:** Stock exchanges, brokers and companies are all heavily regulated through various government agencies. Companies are required to [provide certain information to investors](https://www.bankrate.com/investing/sec-filings-stock-investors-should-know/) through the Securities and Exchange Commission. No regulatory body is perfect, but stocks have been around for a long time and there are certain important investor protections in place. ### Cons of investing in stocks - **Volatile:** When you hold a broad basket of stocks through [index funds](https://www.bankrate.com/investing/low-cost-index-funds-guide/), stocks are less volatile than cryptocurrencies. Individual stocks can be more volatile, but typically less so than cryptocurrencies. Because of this volatility, stocks are best held as part of a long-term investment plan, so you have time to recover from any short-term losses. - **Lower potential for extreme gains:** Broad stock indexes such as the [S\&P 500](https://www.bankrate.com/investing/what-is-sp-500/) likely have less potential for the extreme gains that can sometimes be found among cryptocurrencies. Stocks have returned about 10 percent per year over the long term, whereas it’s not uncommon for cryptocurrencies to move 10 percent in a single day. ## Other considerations when investing in stocks vs. crypto ### Time horizon Your time horizon — when you need the money from an investment — is a key criterion. The shorter your timeline, the safer your asset should be, so that it’s there when you need it. The more volatile an asset, the less suited it is for those with a short timeline. Generally, experts suggest investors in risky assets such as stocks need at least three years to ride out volatility. #### Stocks - Stocks are often volatile, but they tend to be less volatile than crypto. Individual stocks are more volatile than a portfolio of stocks, which tends to benefit from [diversification](https://www.bankrate.com/investing/diversification-is-important-in-investing/). - Stocks are better suited to investors who can leave their money alone and don’t need to access it. Generally, the longer you can leave it invested, the better. - Some stocks can be more volatile than others. For example, growth stocks tend to fluctuate much more than value stocks or [dividend stocks](https://www.bankrate.com/investing/how-to-invest-in-dividend-stocks/). - Investors may shift from more aggressive stocks (growth stocks) to safer ones (dividend stocks) as they need to tap their money, such as when they approach retirement. #### Cryptocurrency - While stocks are volatile, cryptocurrency is ridiculously volatile. For example, during 2021, Bitcoin lost more than half its value in a few months and later gained 100 percent. Such volatility makes crypto unsuited for short-term investors. - Crypto is better suited to traders who can leave their money tied up and wait for it to recover. Think years rather than weeks. ### Portfolio management As you’re thinking about constructing your portfolio, you don’t have to make an either-or choice between cryptocurrency and stocks — or other kinds of asset such as [bonds](https://www.bankrate.com/investing/how-to-invest-in-bonds/) or funds, either. It’s all about weighting your portfolio in a way that fits your risk and time horizon. #### Cryptocurrency - Given its inherent risks, cryptocurrency works better with a small allocation in your overall portfolio. Think 5 percent or less. - Even a small allocation could do wonders for your portfolio if cryptocurrency really takes off. Also, limiting to a small allocation protects you against a complete loss if crypto prices collapse. - If crypto grows to be a significant portion of your portfolio, you can re-allocate more of your money to stocks to lower your portfolio’s overall risk. #### Stocks - Given stocks’ strong long-term record, a diversified collection of stocks should make up the majority of your portfolio, especially if you have decades until you need to tap it. - If you’re investing in individual stocks, you’ll need to research your stocks carefully to achieve good returns. - If you’re investing in funds, you can buy a broadly diversified fund such as [an S\&P 500 index fund](https://www.bankrate.com/investing/how-to-buy-sp-500-index-fund/) without significant research and enjoy the potential for high returns. ## Which is safer, stocks or crypto? When it comes to safety, both stocks and cryptocurrencies present their unique set of risks. Stocks, backed by a company’s assets and cash flow, have a long history of delivering solid returns. They are regulated by government bodies and have investor protections in place. However, market volatility, business decisions, and international events can impact stock investments. On the other hand, cryptocurrencies, while offering the potential for substantial gains, are highly volatile and lack the backing of tangible assets. They also pose risks such as cybersecurity threats and regulatory uncertainties. Therefore, the safety of these investments largely depends on your personal risk tolerance and financial goals. A broadly diversified stock portfolio generally presents a safer option than cryptocurrencies because of their intrinsic value and history of delivering solid long-term returns. Cryptocurrencies may hold greater potential for outsized gains, but come with significant risk. ## Bottom line Some cryptocurrencies have soared in price since being introduced over the past few years, but investors need to understand what they’re investing in, instead of just rushing in because other traders are, a symptom of FOMO syndrome (fear of missing out). If you decide to take a stake in crypto, consider how it fits with your own risk tolerance and financial needs. Investors can earn good returns without investing in cryptocurrency, and some investors, including legends such as [Warren Buffett, won’t touch cryptocurrency](https://www.bankrate.com/investing/good-investment-advice-to-follow/). — *Bankrate’s [Brian Baker, CFA](https://www.bankrate.com/authors/brian-baker-cfa/), contributed to an update of this article.* *Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.* Did you find this page helpful? Help us improve our content

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