Where to invest money in 2023?


Where to invest money in 2023?

There are two most popular ways of money investing — real estate and cryptocurrency. But which one to choose: where can you get more income, what is less time-consuming, and which is easier to handle?

Let’s consider the advantages and disadvantages of both.

Real estate investing

It’s an old but gold way to get rich but let’s look behind the scenes to know all of the details:

  • Unlike cryptocurrency, real estate is a tangible asset, and you can touch it, and damage it. Also, It cannot be hacked or stolen without further consequences (you can always report it to the authority);
  • Real estate is a good way of gaining a stable income from monthly rents. A constant cash flow is an excellent reason to invest in property;
  • Real estate is a good shield against inflation. The rental prices usually increase along with house prices. While inflation and the cost of living go up, real estate investors can maintain their income on the same level.
  • Tax benefits are another pros of investing in the property. In summary, real estate investors pay significantly reduced overall taxes as insurance, commissions, repairs, and depreciation become the tax deductions.

So, are there any cons of real estate investing? Sure!

  • The first and one of the most critical cons is the high transaction cost. The property is very expensive by itself; an investor should also pay for appraisal fees, closing costs, taxes, HOA fees, and property taxes. So, where to get funding for all of this?
  • When the investor wants to sell the property at a market price, it might take months or even years to do that. This means the real estate investment isn’t liquid enough because you cannot get money at the moment you need it;
  • High maintenance cost is another disadvantage of property investing. Whether you have tenants or not, maintaining the major property cost is essential;
  • A slow increase in value is a final con of real estate. You have to wait a decent amount of years to see a significant return on your investment.

Cryptocurrency investing

Some say cryptocurrency is just another trend that will pass in a decade or so, and others say it’s a new-age innovation that will change the world economy. Where is the truth? Let’s consider the main fors and againsts of that:

  • Unlike real estate, cryptocurrency has high liquidity — you can sell it as fast as you need money;
  • Investing in Bitcoin or any other cryptocurrency is much easier than investing in real estate. Firstly, you can invest as much or as little money as you want, and it’s elementary to invest it to get additional passive income on the secure crypto lending platform.
  • Cryptocurrency is a secure and reliable investment; moreover, it’s transparent;
  • Talking about BTC, since there are only 21 million bitcoins, there is no inflation at all;
  • Constantly growing prices are another benefit of investing in cryptocurrency. Subsequently, everyone wants to own a tiny share which drives the price of cryptocurrencies up.

Unfortunately, there isn’t anything perfect, so let’s consider the pitfalls of investing in cryptocurrency:

  • Several countries started adopting cryptocurrency regulations, as it’s the main competitor to any existing currency.
  • Malware, hacking, and other scams and frauds have started to appear in the crypto world, so you have to be extremely careful while operating with your assets.
  • Significant volatility is the biggest con of cryptocurrency investing. In 2017, the value of Bitcoin shot up from $1000 to a peak of $19,783 at the end of the year. Less than six months later, the value went under $7,000 and just recently went above $60,000.

Summarizing the information above, we can conclude that there’s no right and wrong investment. Everything has its gains and losses.

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