Firework Essay: The Difference Between Traditional Finance and Digital Currency

特邀专栏作者

2021-03-14 12:25

This article is about 1419 words, reading the full article takes about 3 minutes

Recently, many friends who trade in the currency circle have found Xinhuo. The reason is that they are new to the currency circle. They feel that the transaction in the currency circle is very different from the previous secondary market, and they don’

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People habitually find an investment place for their idle assets, and these investment methods are collectively referred to as financial management.

People often say that people don't care about money and don't care about you. Maybe it won't be visible in a short time.

But in the long run. There is a big difference between those who know how to manage money and those who don't. Therefore, financial management is extremely important to us, and it is also a skill we must master. After cryptocurrency came into people's field of vision, many people pinned their financial management hopes on cryptocurrency, so what is the difference between traditional financial methods and cryptocurrency investment?

Investment and financial management generally depends on many situations. For example, most people will choose traditional financial methods and are not really interested in the cryptocurrency market. Let’s analyze traditional financial management and the most popular in the market today. How is cryptocurrency investing different.

Generally speaking, the traditional financial management methods are mainly depositing in banks, buying funds, gold and stocks. Everyone knows the way of depositing money in the bank. The thinking of the older generation is that if they have money, they should deposit it in the bank. They think that the bank is the most authoritative method of their financial methods. However, judging from the current point of view, the probability of bank deposits is not high, and there are often practices of self-stealing within banks.

Funds, as the name implies, collect everyone’s money and the institutions use it to buy stocks. However, they usually choose several stocks, so the risk is quite small, and the rate of return is much higher than that of depositing money in a bank. This type of investment is for those friends who have little time to study how to invest, and directly give money to others for investment. To a certain extent, the income is not bad. For those who have no time to invest, this method is a good choice.

Investing in gold is also similar to funds, because gold is a scarce resource on the earth, so it is quite resistant to falling, especially in the event of a financial crisis or war, choosing gold is a good choice. From the perspective of historical gold prices, there has been a steady upward trend.

At present, the biggest investment method of traditional finance is to play stocks. Compared with other traditional investment methods, this risk is still quite large, but the return is also high. At present, the dividend period of this market has passed, and it is not friendly enough to retail investors. Retail investors are easy to be harvested by hot money, institutions, and large investors. Basically, many retail investors can’t make much money.

But the cryptocurrency market is different. Cryptocurrency is currently quietly rising, expanding all the time, and will soon be able to defeat traditional financial methods. Cryptocurrency is positioned for global transactions, which is wider than traditional financial investment methods, and it is not affected by some institutions and can be traded throughout the day.

Compared with traditional financial methods, the price fluctuation of cryptocurrency market has a particularly large gap. The current cryptocurrency market has not been regulated, and there are also great risks. But now the cryptocurrency market is in a bonus period, users can easily earn money by investing in it, and compared with traditional methods, cryptocurrencies often have hundreds of times coins and thousand times coins, and the rate of return is much higher than traditional methods . This is also the main reason why many users who trade other secondary investment markets turn to the currency circle.

Although it seems that there are many benefits of encrypted investment, risks and benefits coexist. I believe that with the development of time, many investment methods will gradually disappear. The cryptocurrency investment that is loved by people today is also because it just adapts to the current social situation and development. Some people say that the cryptocurrency market will become mainstream after all, but that should be a long time away. After a long time, who can tell whether it will become a reality? Different people have different opinions on this point.

Let's talk about the market again: