Cryptocurrencies and gold: You need to take a position

[sakura]

 

Any trader looking to make money on the markets needs to invest time researching before taking a position. 

If you do a search on cryptocurrencies it won’t be long before you’ll see an article that compares their merits against gold. 

Should you invest your hard-earned money in gold or cryptocurrencies? They ask, and variations on that theme. 

The number of these articles implies that they are somehow in competition with each other. 

But it’s a phoney war, as they both have a different role to play in the world of finance and in your portfolio. 

One of the reasons gold has stood the test of time is the stability it offers against the unpredictability of currencies and the sudden collapses that have taken place throughout history that can wipe out fortunes in an instant. 

Gold is the perfect way to hedge against risk, impervious to natural, financial or political disasters. 

Cryptocurrencies also offer a viable alternative to traditional currencies because they are decentralised, meaning no central authority can take it away from you.  

But they differ in tangibility. Gold has been around forever and relied upon for centuries. Cryptocurrencies have no history, they are so new people are still waking up to them and their possibilities. 

 

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