Cryptocurrency or the stock market, which one is better to invest in?

I saw such a message yesterday: "57% of Ethereum wallets have held ETH for more than 1 year, and 31% have held ETH for more than 2 years! The cost of these hoarders is about $400. Do you think these people will double Will it come out?"

I agree with this point of view. In fact, if you follow the way of thinking of a general long-term investor, if you ambush an investment product for one year, two years or even longer, then he is by no means a person who aims at small profits. I am afraid that double the amount will be enough. Not the appetite of such investors. Now that I have invested in digital currency, it seems to me that the return without four or five times is low.

Ethereum rose to its highest peak at the beginning of 2018, close to $1,400, and now it is only $240. It has risen six times to reach its previous peak, and it is only a matter of time before reaching the previous peak.

I repeatedly mentioned in the article that Ethereum can be invested within $400. Taking the trend of Ethereum in this round as an example, we can see how much our cost will be if we make a fixed investment in this way.

The picture below is the trend chart of Ethereum since its peak decline in 2018 to the present.

Let's look at the time points marked by the three arrows in the picture: in the above picture, Ethereum fell below $400 for the first time on August 7, 2018, and fell below $200 for the first time after September 9, 2018. It hit $200 on May 14, 2020.

Counting from August 7, 2018 to May 14, 2020, there are a total of 646 days, and during this period, the price of Ethereum was within $200 for a total of 489 days, accounting for 76% of the total days during this period . That is to say, if we can insist on regular investment, during this period we have close to 80% chance that the cost of fixed investment will be equal to or less than 200 US dollars.

If Ethereum returns to its previous peak, the chips below $200 in our regular investment will have an increase of at least 7 times. Even if it does not rise to the previous peak, but only rises back to the fixed investment price of $400 we set, this part of the chips will also have a double increase.

Therefore, the benefits of regular investment are considerable in the long run, and the risk of regular investment in mainstream currencies such as Ethereum is very small for investors.

Some readers asked which is better to invest in the stock market or digital currency?

Purely in terms of yield, I think the yield of digital currency will be much higher. There are two main reasons: first, digital currency is still an emerging field. The investors are huge; the second is that the digital currency is still in the early stage of development, once it lands in the future and produces subversive applications, its appreciation space will be unimaginably high.

But we can't choose an investment product purely from the perspective of yield, but also from other factors, such as liquidity. The so-called liquidity refers to whether the channel of realization is smooth and the cost of conversion is low when we need to realize the investment goods. In this regard, digital currency is obviously not as good as the stock market.

The recent "blocking card" incident has sounded a wake-up call for all digital currency investors. Every investor who invests in digital currency must consider the issue of digital currency realization in the future. If there is too much risk in realizing it, it will inevitably prevent a considerable number of investors from entering this field and hinder its development and growth.

You can make millions and tens of millions of profits in the stock market, and you can withdraw cash from your stock account to your bank card at any time without any major problems. But if we earn tens of millions on digital currency, it will not be so smooth to withdraw this money.

Therefore, my point of view is that you cannot invest all your funds in digital currencies, especially large funds. You must diversify your investment and take advantage of each investment product.