Crypto Stocks: Better Than Investing in Cryptocurrencies?

Over the last couple of years, as the cryptocurrency industry has gained a tonne of popularity, many crypto stocks have gone public as a result.

Investors of all ages and all types of risk-tolerances have been looking at ways to gain exposure to the industry, although its highly volatile nature can often be a turnoff.

Nevertheless, cryptocurrencies offer a tonne of potential over the long haul for those investors who can stomach the volatility. And because the industry has become so popular in recent years, just like there are so many coins and tokens to consider, there are also now many different kinds of crypto stocks to consider.

But before you do, buying a crypto stock over cryptocurrencies themselves may not make sense for everyone. So let’s look at the main advantages and disadvantages of buying cryptocurrency stocks today.

Crypto stocks: advantages and disadvantages

The main advantages of buying crypto stocks:

  • you can find tax-free investments
  • there’s almsot no chance of rug pulls
  • it’s a low-cost way to get into crypto
  • it’s a simple way to get into crypto
  • there are many different ways to gain exposure
  • Many stocks offer leverage to the price of cryptocurrencies

The main disadvantages of choosing crypto stocks over cryptocurrencies:

  • there’s no control of crypto you’re exposed to
  • trading is closed on weekends (this can be significant during big price movements)
  • you also can’t use your crypto for DeFi or any other use case

Bottom line

Because owning both crypto stocks and cryptocurrencies offer many different advantages, over time, it’s a good idea to consider both.

When you just begin to start investing, you may have to choose one or the other. But over time, as you build your portfolio and add more savings, high-quality stocks can be an excellent complement to your cryptocurrency portfolio.

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