Why New Investors Should Invest in Crypto rather than the Stock Market: The stock market has been the easy and go to investment choice for centuries, but the rise of cryptocurrency in recent years has offered investors a new and potentially more rewarding option. While both stocks and cryptocurrencies have their own risks and rewards, there are several key reasons why new investors should consider investing in crypto instead of the stock market.

Why New Investors Should Invest in Cryptocurrency?

crypto for beginners

Cryptocurrency is more accessible

One of the biggest barriers to entry for new investors is the high cost of buying stocks and sometimes find difficult to understand stock situation. Many individual stocks cost hundreds or even thousands of dollars per share, making it difficult for investors with limited budgets to get started. Cryptocurrencies, on the other hand, are much more affordable. Many cryptocurrencies can be purchased for just a few cents or dollars each.

Cryptocurrency is more democratic

The stock market is controlled by a small number of large financial institutions. This means that individual investors often have little say in how the market is run or which companies are listed. Cryptocurrencies, on the other hand, are decentralized, meaning that they are not controlled by any single entity. This gives individual investors a more direct say in the future of the market.

Cryptocurrency has more potential for growth

The stock market has been around for centuries, and its growth potential is limited. Cryptocurrencies, on the other hand, are a relatively new asset class with a lot of room for growth. As cryptocurrency technology continues to develop and adoption grows, the value of cryptocurrencies is expected to rise significantly.

Cryptocurrency is more resistant to inflation

Fiat currencies, such as the US dollar, are constantly being devalued by inflation. This means that your purchasing power decreases over time as the value of your money decreases. Cryptocurrencies, on the other hand, are deflationary, meaning that their supply is limited and their value tends to increase over time. This makes cryptocurrencies a good hedge against inflation.

Cryptocurrency is more versatile

Cryptocurrencies can be used for more than just investing. Crypto is not just  for trading, even it can also be used to purchase goods and services, send and receive payments and even create new Apps (decentralized applications). This makes cryptocurrencies a more versatile asset than stocks.

Easy explanation for new investors should invest in cryptocurrency

Imagine you are a new investor with $100 to invest. You have two options: invest in the stock market or invest in cryptocurrency.

If you choose to invest in the stock market, you will likely have to buy fractional shares of stocks. This means that you will not own a full share of any stock, and your earnings will be пропорциональны to the fraction of a share that you own.

If you choose to invest in cryptocurrency, you can buy whole coins or tokens. This means that you will own a full asset, and your earnings will be directly proportional to the value of the cryptocurrency that you own.

Here is a table that compares investing in stocks to investing in cryptocurrencies:

Feature Stocks Cryptocurrencies
Accessibility High cost of entry Low cost of entry
Democracy Controlled by a small number of large financial institutions Decentralized
Growth potential Limited High
Inflation resistance Fiat currencies are constantly being devalued Deflationary
Versatility Can only be used for investing Can be used for investing, purchasing goods and services, sending and receiving payments, and creating new Apps


Additional benefits for new investors

  • Lower barriers to entry: New investors can start investing in cryptocurrencies with just a few dollars.
  • More control: New investors have more control over their investments in cryptocurrency than in the stock market.
  • More opportunities: Cryptocurrency is a rapidly growing market with new opportunities emerging all the time.
  • More support: There is a growing community of cryptocurrency investors who are willing to help and support new investors. Also read: How to Get Started in Crypto as Beginner? [One Stop Solution]

How to start investing in cryptocurrency

If you are a new investor and you are interested in investing in cryptocurrency, there are a few things you need to do to get started:

  1. Do your research: There are many different cryptocurrencies available, so it is important to do your research and choose the ones that you believe have the most potential.
  2. Create a cryptocurrency wallet: A cryptocurrency wallet is a digital wallet that allows you to store your cryptocurrencies. There are many different types of cryptocurrency wallets available, so choose one that is right for you.
  3. Buy cryptocurrency: You can buy cryptocurrency from a cryptocurrency exchange. There are many different cryptocurrency exchanges available, so choose one that is reliable and offers the cryptocurrencies that you want to buy.
  4. Invest wisely: Remember that cryptocurrency is a volatile asset class.


For new investors, cryptocurrency is a more accessible, democratic, and growth-oriented investment vehicle than the stock market. Cryptocurrencies are also more resistant to inflation and more versatile than stocks.

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