When it comes to investments and saving for your future, many people get caught up in the possibility of being able to make money fast. Some people have become very rich through risky day-trading practices or by getting lucky and investing in unknown companies that become the next Apple or Google. Unfortunately, building wealth through these strategies doesn’t happen often, and there are far more people who end up losing a substantial amount of money.

Right now, everyone is talking about cryptocurrency. Chances are, you even know someone who owns some. But, how do the risk and return possibilities of owning crypto compare to that of owning rare coins? There are several things to consider and Austin Rare Coins and Bullion is here to help provide you with the information you need to make the right decision.

 

 

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What is Cryptocurrency?

Cryptocurrency is a form of currency that only exists in a digital format. Like other forms of currency, crypto can be used to buy goods and services, although there are only a few places that currently accept it. This, however, is changing. More and more businesses are accepting crypto including Starbucks, AT&T, and Whole Foods. Supporters of cryptocurrency see it as the currency of the future and it’s become incredibly popular for two reasons. First, its growth over the past few years has been huge and speculators want to be able to buy it before it increases even more in value.  Second, some people like that it’s not issued or managed by banks (this is also viewed as a downside by some investors). 

 

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Risks of Investing in Cryptocurrency

Despite cryptocurrency being one of today’s hottest topics, it may not be the best choice for most investors. First, it’s not actually a true investment. Cryptocurrencies don’t generate cash flow as businesses do — the loss and gains are instead tied to being able to sell it for more than you paid for it. Second, cryptocurrency is highly volatile. This makes it a poor choice as a currency because currency needs to be stable in order for people to determine a fair price. And finally, crypto isn’t backed by the government. While that is a factor that appeals to some, it also means that no one is regulating its use so counterfeit cryptocurrency could be created and there would be no one to stop it.

 

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Why Add Rare Coins to Your Investment Portfolio?

Rare coins are another way to diversify your portfolio. Unlike crypto, rare coins are legal tender that provides a stable long-term investment. Unlike other investments that are susceptible to stock market ups and downs or inflation, rare coins aren't affected by these unpredictable patterns because they are tied to supply and demand. Furthermore, there are no requirements for reporting them as part of your assets so you can retain some of your wealth outside of the banking system.

 

 

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Rare Coins: A Smart Investment

It’s never wise to put all of your eggs in one basket, which is why at Austin Rare Coins and Bullion, we advise our customers to diversify their portfolio to include a variety of trustworthy investments including rare coins. That’s because they can be verified by the major authentication companies, aren’t susceptible to large swings in value, and have historically shown to appreciate in price. 

 

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If you’re looking to start adding rare coins to your portfolio, Austin Rare Coins and Bullion can help. We’re one of the most trusted experts in the industry with over 30 years of experience. We offer a large, and ever-changing variety of rare coins, ancient coins, and pre-1933 gold coins, as well as other forms of gold, silver, and platinum bullion.  Contact us today and we’ll be happy to help you get started or answer any questions you may have.