We all know what Cryptocurrency and Mutual funds are in the trading market both are considered assets where the trades and the investors invest in. Like every other asset, both Cryptocurrency and Mutual funds have their own way of doing things. Before heading for the comparison, lets first have a small summary of both types of investment.
What are Bitcoins?
To understand the bitcoins, you first need to understand what cryptocurrencies are. Cryptocurrency is the decentralized digital currency, that no government holds any authority. Cryptocurrencies are highly volatile in nature and tend to have high price fluctuation.
Bitcoins were the first Cryptocurrency that was introduced to the trading world in 2009. Over the past decades, the bitcoin has spread its roots deeper in the trading market. And today, there is a huge market revolving around the Bitcoins.
What are Mutual funds?
Mutual funds is a collaborative investment, where many investors come together to combine their capital and then invest in buying another form of assets. These assets mostly include stocks, Bonds, Company shares, etc. These mutual funds are controlled by the fund manager and it is the fund manager that decides where to put the capital so that it brings more profit. Mutual funds are under the government organization and whatever the return is, the returns are liable for taxes.
How to Invest in Bitcoins and Mutual funds?
When it comes down to the Investment, both Bitcoin and Mutual funds have a different way of investing their capital.
Investing in Bitcoin
Bitcoin majorly follows two forms of investment that you can make in Bitcoin. One is the buying and selling of the bitcoins (The most common method used by most of the trades) and the second one is Bitcoin mining. If you are interested in investing Bitcoin, then the bitcoin circuit website is best to place your first deal.
- Buying and Selling
Bitcoin has a high volatile nature. So, the most effective way of earning from the bitcoin is by buying them at a low price and then selling them when the market value is higher than the cost price. It is the simplest way you can invest in Bitcoin. And with the high volatility, you don’t need to wait long to make a profit.
You can also exchange bitcoins with the other traders. This also helps the traders to gain profits from the price fluctuations.
Mining is the process in which you help the traders with the Cryptocurrency transactions and earn rewards while doing so. All you need to have a decent computer system with an internet connection. And you will be all set with the Bitcoin mining.
However, there is a flaw in this method. Sometimes the overhead expenditure increases the amount of Bitcoin you earn. So before starting with the Bitcoin mining, you need to have a clear understanding of your computer system and how much power does it consume while extracting 1 bitcoin. If the cost of the overhead expenditure increases the cost of Bitcoin you earn. Then there is no point in Bitcoin mining.
Investing in Mutual funds
Mutual funds are the part of the government organization, so you can easily buy than at any government institution like Bank, any Broker firms, or Mutual Funds Company. The first step that you need to take is to open an account in any of these institutions. And once the account is created, the rest of the process is very simple. You can even buy the funds over a phone call.
Both Bitcoin and Mutual funds have different natures. There is no similarity whatsoever. In addition, Mutual funds are under Government wings and Bitcoins are independent. So, it is totally up to you. In which asset you want to invest in.
Disclaimer: This is a paid post and should not be considered as news/advice.