Bitcoin vs Real Estate: Which is the better and Smarter Investment?

When it comes to deciding where to put your hard-earned money, it’s a difficult decision to make. Add to it the ongoing pandemic, and the uncertainty of the situation only makes it more difficult to make a decision. As in a game of chess, a couple of bad moves, and you’re doomed to lose everything you’ve worked so hard to salvage.

If you want to watch your money grow, especially without having to work for every penny, the simple solution is to invest it in the right place. Many investors can build a profitable, diverse investment portfolio with a little hard work, research, networking, and luck.

Other than traditional investments like real estate, One more asset class came into the picture in recent years. i.e bitcoin investment.

What is bitcoin?

Bitcoin is decentralized digital money that may be sent from user to user on the peer-to-peer bitcoin network without the involvement of intermediaries. Transactions are encrypted and confirmed by network nodes before being recorded in a blockchain, which is a public distributed ledger.

The cryptocurrency was created in 2008 by an unknown person or group of people using the pseudonym Satoshi Nakamoto. The currency was first used when its implementation was made available as open-source software in 2009.

Because it uses encryption to ensure its security, Bitcoin is classified as a type of cryptocurrency. There are no actual bitcoins; rather, balances are recorded on a public ledger accessible to all (although each record is encrypted). To verify all Bitcoin transactions, a large amount of computational power is used, a process is known as “mining.”

Where can you buy Bitcoin?

You can trade bitcoin and cryptocurrencies on the Carret app. It is a one-stop-shop for crypto investments. It provides a trading platform where you can buy and sell assets while also earning interest on your crypto assets. “24Carret” is a Crypto Savings Account platform, which allows our users to receive interest on their crypto holdings. The available returns range from 7% to 17% APY.

Pros of investing in bitcoin:

One of the most recent investment options is a cryptocurrency, the most well-known of which is bitcoin. These digital currencies serve as a global medium of exchange as an alternative to money.

Some pros of bitcoin investing are:

  1. Easy Entry: Investing in Bitcoin is simple, especially when compared to real estate. If you want to buy real estate, you must either have a large sum of cash on hand or take out a loan. You can start investing in Bitcoin with as little as Rs. 100. We can buy a fraction of a Bitcoin at a time and wait for the price to rise because Bitcoin is divisible into units.
  2. Consistently rising prices: With so many investors now interested in Bitcoin, everyone seems to be rushing to get a piece of the action. This means that the value of Bitcoin continues to rise.
  3. High liquidity: If an investor needs money quickly, they can sell their Bitcoin and use the cash. Selling usually takes only a few minutes.
  4. Fixed supply: Because there is only the possibility of around 21 million Bitcoins, there is no inflation with this asset. There is a limited supply and there will not be anymore. Bitcoin investors, on the other hand, can always diversify their digital assets by investing in other forms of cryptocurrency.

The benefits of investing in Bitcoin appear to be numerous, but don’t put all of your eggs in one basket just yet. Check out other blogs to know more about the crypto world. 

Cons of investing in real estate:

Real estate, like any other investment opportunity, has drawbacks. An investor must consider these factors as well; it is only logical to investigate all factors before investing in anything. Here are some of the major disadvantages right now:

  1. High transaction costs: Buying a home is expensive enough; on top of that, real estate investors must pay appraisal fees, inspection fees, property taxes, insurance, closing costs, and HOA fees.
  2. Low liquidity: When a real estate investor wants to cash out on their investment, the process can take months, if not years. In fact, the longer a property is on the market, the less likely it is to sell for a high price. This means that real estate isn’t a very liquid investment; we can’t just sell it when we need cash.
  3. High maintenance costs: Whether you’re renting or flipping a house, maintaining it is a significant expense and responsibility. Even if a property is vacant, it will still require maintenance and repairs if there is no income to offset the costs.

Which investment is better Bitcoin vs Real Estate?

In simple words, depends on many factors, like risk capability, the end goal, purchase price, future perspective, and a lot more. Real estate will be safer than bitcoin but might give you fewer returns than investing in bitcoin.

Investing in real estate provides you with a tangible asset that will provide you with a consistent monthly income in addition to appreciation. There are numerous tax benefits and incentives associated with real estate, and you can use leverage to increase your returns. Real estate is also unaffected by stock market fluctuations, making it an excellent way to diversify your portfolio and reduce overall risk.

As you build out your investment portfolio, your best investment will be determined by your personal financial background, familiarity with the asset, and risk tolerance. Buying bitcoin is low-maintenance and high-risk, with the potential for high reward, whereas real estate is a long-term investment that could result in a large payout or provide consistent income. So, in the end, it comes down to what you can afford and what you can afford to lose.

When one considers its liquidity, widespread corporate adoption, and anti-inflationary properties, it appears that now is a good time to enter the Bitcoin market. That being said, one should always invest wisely, conduct due diligence, and seek professional advice if they have any questions.

Carret: The best app for a crypto investment platform in India

According to the history of ROI, Crypto investing outperforms all other types of investments. but at a higher cost. Carret is a one-stop bitcoin and crypto investing platform. It provides a trading platform via which you can buy and sell assets while also earning interest 10%APY on  Bitcoin. Our “24Carret” Crypto Savings Account platform allows customers to earn interest on their cryptocurrency assets. The available rates of return vary from 7% to 17% annualized.

Carret will let Indian retail consumers multiply their wealth by providing income-generating options on a select few crypto assets available on the platform. When you consider the benefits of diversification and the opportunity to hedge against inflation, adding crypto or crypto stocks to your portfolio makes sense. Assuming you invest in the proper cryptocurrency at the right moment, they will soon pile up.