As we near the end of 2021, many people are scrambling to figure out the best holiday gift. According to recent studies, stocks and crypto are the hottest gifts this year. Let’s look at why they have outperformed other gifts in recent years and how to buy stocks and crypto.
Stocks and crypto have outperformed other gifts in recent years for a few reasons. First, stocks and crypto are both seen as investments with potential upside. Whereas most other gifts lose value over time, stocks and crypto tend to go up in value.
Additionally, stocks and crypto are both easy to buy and sell. This makes them a more desirable option than other gifts, which may be difficult to purchase or return. Finally, stocks and crypto provide investors with the opportunity to make money while they sleep. Unlike other gifts, stocks and crypto can generate income even when the recipient is not actively using them.
Despite their advantages, stocks and crypto also come with risks. The biggest risk is that the price of these assets can drop quickly and without warning. Investing in stocks and crypto can also lead to big losses if the market goes down. This risk makes them a poor choice for many people, especially those who don’t fully understand how these assets work or their risks and rewards.
Despite the risks, most experts agree that buying crypto and stocks is one of the best investments you can make this holiday season. If you are interested in getting started, you’ll need to open an account with a stock brokerage firm like Robinhood or Motif capital markets (disclaimer: we may be compensated by these firms). Then, choose which type of asset you would like to invest in (crypto vs stocks) and sign up for an account with Coinbase.
Why Are Stocks And Crypto Being Considered The Hottest Holiday Gifts This Year?
Stocks and crypto have overtopped various other types of gifts in recent years. Let’s look at how much different assets have grown over the last few decades. As you can see, stocks have seen an average annual growth of 6% since 1990, while crypto has seen an average annual growth of 1,300%!
The headwinds facing both traditional equity markets and cryptocurrencies are similar – uncertainty regarding global economies/monetary policies, geopolitical risks, profit pressures from new capital market entrants, etcetera.
However, it is precisely this volatility that makes stock/crypto investing so attractive to many people looking for high returns in today’s investment climate.
How Do I Buy Stocks And Crypto?
Buying either stocks or crypto is extremely easy. First, you need to open an account with a brokerage company (e.g., TD Ameritrade, E-trade). You can get started by opening up a cash account. Once your account has been opened, the broker will manage all transactions for you – you simply deposit money into your account to establish equity in your investments.
To purchase securities, all you will need to do is place an order through the online platform! Many factors affect stock prices; while it may be difficult to predict which companies will perform well in any particular market environment, putting aside some research time before investing will certainly pay off over time!
The buying process is a little more complicated when it comes to cryptocurrencies. You will need to create a wallet and then buy the desired cryptocurrency on an exchange.
Wallets can be created on websites such as coinbase.com, and exchanges include Poloniex and Bitstamp. Buying cryptocurrencies can be done with a number of currencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
What Are The Risks Associated With Stock And Crypto Investing?
While stocks and crypto offer the potential for high returns, they also come with significant risks. When you invest in stocks, you become a part-owner in the company – if the company goes bankrupt, you could lose all of your investment.
Similarly, if there is a collapse in the crypto market, you could lose all of your investment. It is important to do your homework before investing in stocks or crypto and always invest within your means!
How Have Stocks And Cryptos Overpowered Other Gifts This Year?
Investing in stocks and cryptocurrencies has made for an extremely profitable year compared to other gifts, including the latest iPhone. As of December 25th, 2017 – after just 11 months – the best-performing cryptocurrency bitcoin was up 1,318%, while Apple Inc.’s (NASDAQ: AAPL) stock had gained 24% during that time period.
Meanwhile, if someone had given one share of Apple at its peak price earlier this month (December 19th), it would be worth about $160 more today than if they were to buy one new iPhone X. Also interesting is that people who invested in Cryptocurrencies like Bitcoin, Ethereum or Litecoin are far better off than those who didn’t invest anything at all by nearly 5,000%.
The rise in the prices of stocks and cryptocurrencies can be attributed to several factors. The global economy is recovering from the Great Recession, with major economies such as the United States, Japan and the Euro Area growing at their fastest pace in years.
Central banks around the world are also continuing to keep interest rates low, which has helped fuel a stock market rally and increase demand for alternative assets such as gold and bitcoin.
In addition, institutional investors such as hedge funds and pension funds have been increasing their allocations to stocks and alternative investments like hedge funds and private equity while reducing their holdings of traditional bonds and cash.
This has driven up the prices of stocks and other risky assets while depressing the prices of safe-haven assets like Treasuries and other government debt. Finally, the low volatility environment that we’ve been seeing this year has also prompted an increased demand for stocks as a way to generate yield.
Those who invested in Cryptocurrencies like Bitcoin, Ethereum or Litecoin are far better off than those who didn’t invest anything at all by nearly 5,000%. In all fairness, though, it’s hard to predict future price levels of cryptocurrencies, so investing may not be for everyone.
The global economy is recovering from the Great Recession, with major economies such as the United States, Japan and the Euro Area growing at their fastest pace in years.
Central banks worldwide are also continuing to keep interest rates low, which has helped fuel a stock market rally and increase demand for alternative assets such as gold and bitcoin. Cryptocurrencies are here to stay and will continue to grow in popularity, so investors need to have a basic understanding of how they work.