Stocks, Crypto and Real Estate: How do These Investments Compare?

Graphics of a building, stock chart and Bitcoin representing the three asset classes

Everyone knows diversifying an investment portfolio is generally a good idea: it helps protect against volatility but also offers a chance to explore new and different ways to earn passive income.

We’ll take a look at how three popular investment asset classes in stocks, cryptocurrency and real estate stack up against each other and how addy plays a role in real estate. By comparing and contrasting these assets, it may help you determine which one – or ones – you could invest in.

Investing in stocks

Basically, a stock is a security representing ownership in a company that you can buy or sell; it’s a measurement of equity in that company. Stocks are highly liquid and easy to buy and share, making them popular and accessible yet not generally ideal for making money in the short term. A wealth of platforms are available for people to use, often for free. Some group may welcome you to pick your own stocks while others offer the chance to do it on your behalf.

There are countless stocks that come with all different price tags, which means there is typically something for everyone in the stock market. Still, stock market volatility means you should invest carefully.

Are stocks worthwhile?

Investing in stocks is simple and easy, so it welcomes beginners as well as more seasoned investors. There are platforms available for all kinds of goals, so it’s just a matter of honestly assessing your financial plans, acumen and risk appetite. Generally, it’s worth investing in stocks, especially as someone just starting out on their investment journey as you can learn a lot with only a little money involved.

Investing in cryptocurrency

This asset class is by far the most talked about, the most debated and features the most fervent fans and detractors. It’s also the biggest boom or bust option and has seen some of the wildest swings. Still, cryptocurrencies are increasingly mainstream, with Bitcoin, Ethereum and even the absurd Dogecoin wildly popular and widely understood.

It’s not just investing in crypto that’s useful: holding it can be valuable as well. That’s because some crypto banks will also pay you a percentage of interest if you store your cryptocurrency with them. They will lend it out to others in need at high interest rates and pay you some of that in exchange.

Is crypto worthwhile?

If you’ve a high risk appetite and pay close attention to fluctuations, you’ve a chance to make some money in crypto. Keep in mind that it’s highly volatile, fairly new and lacks regulation, all of which mean you can make a lot of money, but also lose a lot (there is also a heavy environmental toll). For those who want to invest, you need to be able to stomach these fluctuations and hold on through the tough times.

However, the strategy of dollar-cost averaging may be useful to offset the volatility of crypto.

Investing in real estate

The oldest of the three investment opportunities is often considered the safest. It is generally stable and provides a long term cash flow and return on investment. However, it also requires the most money upfront and mostly illiquid, which means your money will be tied up for some time.

Still, banks will lend you money to invest in real estate; they won’t do that for other assets. You can also use your real estate investment as leverage for other investment opportunities.

Is real estate worthwhile?

The short answer is often yes! Real estate is a terrific way to earn passive income with what is generally a reliable asset class. Of course, it’s not always easy getting the money together and going through the processing of buying property. Booming prices across Canada, spurred in part by high demand and low supply, mean it’s hard for the average person or family to invest in a new home. That’s why addy is here to help.

Crowdfunding real estate with addy

addy breaks down the barriers to real estate by crowdfunding investments, allowing members to invest as little as $1 in a property. This threshold allows the average Canadian to enjoy fractional ownership of an institutional grade commercial real estate property that typically has a price tag anywhere from $3 million all the way to $100 million.

Investing with addy is easy and simple. You can become a member in minutes, fund your wallet quickly and use our Instant Funds feature to immediately put money towards an available property. There are no hidden fees, so all of your money goes directly to the investment. We provide important information about the opportunity, including the potential return on investment and when you may see distributions from the property go into your wallet.

Earn passive income through crowdfunding real estate with addy:

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