SINGAPORE — Stocks may be the most well-known and simplest type of investment, but cryptocurrency seems to be the next big thing in recent years too. What then, should millennials choose to invest in — stocks or cryptocurrency? And is there a better option?
This is part of a series where Yahoo Finance Singapore will focus on different aspects of millennials and their finances. In this first part, we discover whether it’s better for millennials to invest in stocks or cryptocurrency.
Diversification as the baseline
First things first, it is important to know what you are dabbling in. Investing in stocks can include a variety of investment instruments such as exchange-traded funds, index funds, government bonds, futures, warrants, and commodities trading. They are usually done through investing a small sum of money every month.
Meanwhile, cryptocurrencies are digital assets that people can use as investments or for online purchases. How it works is basically exchanging real currency to buy “coins” or “tokens” of a certain kind of cryptocurrency.
Hence, the short answer to whether stocks or cryptocurrency is a better investment is that it depends on what your financial needs and wants are. In fact, the financial experts that Yahoo Finance Singapore spoke to advised that millennials should actually invest in both stocks and cryptocurrency.
“Ultimately, your financial portfolio…
