What to choose for investment in 5 areas: Stocks, Coin, Forex, Real Estate, Gold. Let’s compare each type and its pros and cons.
Contents
What to invest in 2025
What is investment?
A common characteristic of investment is its long-term nature, even possibly spanning 10 – 20 years or more. Investment transactions are very few due to the nature of holding over a long period.
Many people often confuse speculation (trading) with investment. Most financial theories agree that trading and short-term transactions are grouped with gambling. According to the United States Commodity Futures Trading Commission, a speculator is: “a trader who does not hedge risk, but trades with the goal of making a profit through successful prediction of price movements.”
The difference between types of investments
Thus, you can see, if talking about investment, all 5 areas above have a low loss rate. In contrast to investment, the level of loss is high to very high. However, the reality is that in all 5 areas, speculators overwhelmingly outnumber investors, except in real estate. The desire for quick wealth has caused most participants to lose all their money instead of succeeding as they had dreamed.
Comparing the inherent characteristics of types of investments
If at the same time you buy:
- 1 million MSFT shares
- 100 Bitcoins
- 1 piece of land
- 20 million USD
- 100 gold bars
The assets you hold remain constant at the purchased number. But what makes each type of asset increase in value:
- Its intrinsic value increases
- The market (others) bids higher for it
For gold, coin, and money, they do not create much intrinsic value. That is, holding these assets does not bring value to the owner unless they sell them and profit from the difference. The intrinsic value of gold can include making jewelry, industrial chip applications, decoration. For money, if not exchanged for something else, you can use it to make paper kites. With Bitcoin, you can imagine its value and be happy.
Stocks and Real Estate are the two types of “real money-making” assets. You own a piece of land, a house: You can rent it out, it still generates money without you having to sell it. Similarly, with stocks, you still always hold 10% of a business, but from a business with 2 factories, it has generated 10 factories with thousands of workers.
Thus, stocks (Securities) are the most different in types of investment. It itself increases its value without needing to rely on market offers. Real estate inherently has intrinsic value, but that value cannot grow on its own. Gold, Coin & Money do not inherently generate money. In fact, money can also generate money while still holding the money, through savings.
For coins, this model has begun to shift to developing benefits for holders. But those benefits are mostly generated internally, not from surplus.
- Coin A creates a value of 500M$ a year (Or other units like: Cars, computers, robots, etc.). Holders of coin A enjoy a percentage of the value created by coin A.
- Coin B does not create any external profit/value. Holders of coin B are paid a portion of bonus coins simply to encourage holding (Hold/Fomo).
There are very few coin projects generating profit at this time. Examples include Tokens from exchanges, which enjoy a part of the profit from transaction fees.
In the future, Coins will be divided into 2 groups: Static asset group (Similar to gold: Represented by Bitcoin…), Stock group (Electronic shareholders: Represented by BNB…). The operation of the second type is completely similar to stocks, and it will soon be regulated like stocks.
For Forex, most of it is used for trading – speculation. Activities of buying and selling with very high liquidity for short-term profits. Few people invest in currency long-term, as its volatility is quite low.
What should you invest in?
There’s no single thing that’s always good at all times. Holding Stocks, Gold, USD, Coin, Money at the wrong time leads to failure. So, what makes an asset type increase in value:
- Its intrinsic value
- Market economic and financial fluctuations
There are types of investments that have no intrinsic value, only relying on the second factor.For gold, people only consider defense needs or economic risks to seek investment opportunities. Further reading: How to invest in gold.
For stocks & real estate, it’s necessary to consider the value of the company, the value of the land along with the macroeconomy for investment. But the value of it itself is more important than the overall economy. An economic perspective only helps you buy at a better price.
For coins, there are also only 2 principles: Good coin (According to the 2 groups that will develop in the future above) & a good time. Missing one of the two will also not be successful. And of course, a good coin first, then choose the time.
In summary, each type of investment has its advantages, disadvantages, and attractiveness. In order, we highly rate:
- Stock investment
- Coin investment
- Real estate investment
- Currency/Gold investment
This is just the order according to the inherent characteristics of each type. To accurately choose the best investment right now, follow the analysis and opinion columns to make the most accurate decision.
