Cryptocurrencies are the new go-to options in the finance industry, helping people to do things they would otherwise have found so tough. It has not been an easy route for the new blockchain technology as banks and governments tried to stop cryptos but failed.
Jamie Dimon, the CEO of JP Morgan & Chase, once referred to Bitcoin as “a very terrible” store of value that was largely used for illicit functions. Now, the same bank is at the frontline of supporting blockchain technology. This is only one example showing the radical shift towards cryptos.
As governments, companies, hospitals, and more individuals join the crypto world, investors are reeling with weighty questions, “do you go cryptos or stick to the traditional investment instruments? In this post, we compare investing in properties to crypto staking.
Table of Contents
Investing in Properties
This is the process of buying real estate-related properties with the intention of making some return on investment, either through sale or rental. You might want to work alone or join hands with a group of other real estate investors to pool resources together.
The process starts when you make the decision to invest in properties. Here, you need to decide the type of property to focus on and the strategy to use. For example, you might want to use the buy and hold method, which means purchasing the selected property and waiting for the price to move up in order to sell. You might also want to develop the property and use it for rental income.
Pros
- You have tangible products that you can see.
- It is an investment instrument trusted for years.
- Many banks are willing to fund your purchases and allow payment in installments.
Cons
- A lot of capital is involved.
- The process of buying/selling is complicated.
- Selling property takes a lot of time.
- You have to involve a lot of parties, from valuation officers to government departments.
Staking
Unlike investing in properties, staking deals with crypto coins. These are digital currencies that only reside in their native blockchain networks. Good examples are Ethereum (ETH) and Solana (SOL). The process of staking involves committing your crypto coins to a blockchain network so that they can be used to validate transactions. In return, you are rewarded with a section of the fees that are paid by users to make transactions.
Pros
- The process of staking is easy and fast. You can start staking your coins in only a few minutes.
- You do not need to sell your coins to start staking. At the end of the staking period, all your coins plus the rewards will be returned to your wallet.
- You also get to enjoy any growth in the value of your coins reported during the staking period.
- There is no special setup required for you to start staking. All that you need is to send the coins to a good staking pool.
- It brings special satisfaction that your coins are helping to secure the blockchain network of interest.
Cons
- The risk of losing your coins through hacks always looms.
- The crypto industry is still new and more information about the dynamics of cryptos is getting revealed.
From this comparison, it is evident that both properties and staking come with unique benefits and disadvantages. However, staking is a new method, which is unique because you do not need to sell your coins. If you are a starter, the best idea would be to diversify your investment portfolio. Therefore, do not give up on the real estate, but a significant chunk of your resources should be directed to crypto staking.
One of the best platforms is hi.com. On your Instagram or Telegram page, open a chat box and type hi to get started. You can buy cryptos, receive, send, and earn with ease. hi makes getting into cryptos and earning passive income so simple and convenient!
