Professional analysts detect the sound of alarms of an emerging recession. They kept ringing the bells as the COVID-19 recession hit the Indian economy, one of the shortest in history. The pro-recessions effect has renewed the interest of investors in making diversified portfolios, ensuring they lose as little as possible if again a recession hits.
As an experienced investor, you stock up your portfolio with gold as a traditional asset. Digital gold is today’s trend, and many investors are stocking up on this digital gold. Simultaneously the market is in a bulge due to the existence of cryptocurrencies like Bitcoins. Instead, buy digital gold online for a secure and convenient way to make up a rigid investment portfolio.
How Investing in Digital Gold is Helpful?
- Historical graphs have always resembled the beautiful performances of gold during odd times in the economy because it maintains its stability and value during market corrections.
- This leads good investors to move from regular stocks to gold to prevent themselves from recession threats.
- It occurs as a hedge against market corrections or recessions. Buyers can buy digital gold online in small amounts in meager payments for a specific tenure that starts at just Re1 to an extensive amount from anywhere and anytime, acquiring the convenience of digital access to the commodity.
- Regardless, during the covid-19 times, many investors also moved to the new approach cryptocurrency investing option. But on the other spectrum, conventional investors followed traditional strategies and transitioned to gold.
- The result has been seen in the skyrocketed price of gold during the severe pandemic that hit the country.
Is Investing in Bitcoin a Better Option?
- A cryptocurrency is a digital currency based on a decentralized network, not controlled by any central government authorities. It makes them immune to government interventions.
- One of the largest cryptocurrencies is Bitcoins, launched in 2009, opening a new era in finance and investing.
- Initially, only a few niche enthusiasts figured out the path of investing in Bitcoins, eventually locating its high money-making graffiti and promoting cryptocurrency exchanges.
- However, during the pandemic period, the price of Bitcoins merely fluctuated. It tempted the investors to create a new investment instrument and started funding this portfolio to earn enormous amounts.
- As a result, speculators started using Bitcoin in a buy-and-hold strategy, but its price fluctuated wildly as the pandemic continued, starving to maintain its price value.
Underlining the Key Difference Between Bictoins and Digital Gold?
Gold has dominated the Indian market for decades as a means of exchange and holding wealth. On the other hand, the emergence of Bitcoin has achieved widespread recognition since its existence due to its outstanding performance. However, despite its trackable performances, there is a vast difference between these two investment options.
This article explains their fundamental differences, ensuring which one to include in your portfolio.
- Liquidity: If you are looking for an asset you can quickly sell after locating a swing in the market, digital gold is a better option. It is a much more liquid asset, allowing investors to reallocate their portfolio if the market fluctuates. Selling several gms of digital gold would not affect its price value, but if you want to sell Bitcoins, there is some limitation when the price is high. Because of selling more bitcoins, its price would drop dramatically.
- Volatility: Bitcoins are constantly subjected to media effects. Investors become panic and make quick decisions if they get news of any disbalance in cryptocurrency. It affects the bitcoins’ value and causes price fluctuations, sending it upward and downward. Such situations boil down your investment goals while speculating your risk tolerance, considering how much you can bear if the market crashes. Thus, professional investors will always advise you to buy digital gold online, absconding the risk factor for safe trading. But, this volatility is not inherent in gold. Therefore, for investors, it is a safer asset than bitcoins.
- Utility: Physical gold is utilized in many applications, like making ornaments, currency, luxury items, etc. You will find bitcoins only as a digital currency; there is no tiger utilization of Bitcoins which hampers the demand for this asset comparatively to gold. Instead, gold also maintains its price value due to its ongoing demand and functional utility. That is why amateur investors blindly invest in gold that occurs in digital forms nowadays, without taking any risk in price volatility in the market.
- Tax Affixed When Buying and Selling Assets: You’ll pay a 30% tax on profits from trading cryptocurrencies like Bitcoins. In contrast, there are no additional charges for trading or selling digital gold. But a 3% GST on gold in India is being affixed to buy digital gold online. Moreover, you need to pay extra charges to store both assets.
For instance, DIGIGOLD is a trustable online platform where you can buy, sell and store digital gold at actual market rates. A minimum purchase amount starts from Re 1 and extends to infinite amounts, offering quality gold of 24k and 22k, 100% purity acclaimed.
Thus, which is a better investment option depends on how capable you are of digesting the risk, tolerance, and other factors associated with the daily price value of these two assets. Also, dealing with these two assets, which come digitally in the market, is very easy. Hire a broker or platform to trade and store them under complete security.
Also, you can choose their app versions for buying digital gold. From the DIGIGOLD Mobile app, you can buy, sell and track the real market rate of gold daily through this app. You have to download the application on your handy gadgets and register.