Which Investment is better? Cryptocurrency Vs. Real Estate

Estimated reading time: 5 minutes

When you are thinking of what asset to invest in these days, be sure to hear 10 friends say cryptocurrency is the surest investment. Another set probably may say, invest in real estate. Well, you can’t say either is wrong investment advice. But each comes with its advantages and disadvantages. Truthfully, the one way to increase wealth and save money for retirement is investing your money in a reliable investment. In this article, let’s explore the pros and cons of both cryptocurrency and real estate. In the end, you should have been able to decide which you prefer as an investment plan.

What is real estate

Real estate in simple language can be explained as the entirety of land,  both natural and artificial properties on it. In other words, real estate is the land and such things as the building, trees, bridges, garden and fences on it. Read further to find out why to consider investing in real estate. Also, you can check 5 businesses to start with less than 100K in Nigeria. Meanwhile, don’t forget to hit the subscribe button, so as to always be the first to hear from us.

Why choose real estate as an investment

The arguments in favour of real estate investment is tied to the forever existence of humans and their far less met need for shelter. In a world, where there is a constant need and demand for land and building, prices are always increasing. This inflation factor makes real estate a store of value and profitable investment.

Most real estate as an investment is leased or rented out. However, some real estate owners or investors engage in what is known as ‘flipping’. Flipping has to do with the quick action of reselling an acquired real estate, taking advantage of a rise in value. Conversely, others buy real estate, repair, with an expected rise in value, birthing a substantial gain, when sold.

What is cryptocurrency

Cryptocurrencies or cryptos are digital currencies, created with the intention of being used as a medium of exchange for goods and services. There are many brands of crypto out there, with the most popular being, bitcoin. Bitcoin is a stable coin launched in 2009 by Satoshi Nakamoto. Bitcoins are created through a process known as mining. Which involves solving complex mathematical problems by computer software, to earn a reward of a bitcoin, once the problem is solved. You may be interested in digging further into the history of cryptos.

Why consider investing in cryptocurrencies

Unlike traditional or fiat currency, cryptos are unregulated and decentralized, at least for now as at the time of publishing this blog. These same characteristics make it a good investment and at the same time, a highly volatile investment. Plus, digital currencies are gradually becoming an integral part of finance and FinTech. In short, it’s becoming clearer that it will be part of the future. Those who doubted 10 years ago wish they had bought bitcoins then. 

Also, unlike the modern banking system that is centralized, cryptos are decentralized. They can be bought, sold, stored and traded anytime. Especially when they are well-performing. Cryptos are like blood money when you cash out. Imagine bitcoin that fell below  $30,000 sometime around June this year.  At the time of this writing, one bitcoin is $60,147 but had done $67,000 in previous weeks. Already, there are speculations that it will hit $100,000 before December 2021.

Later go on to read this is you are looking or ways to raise funds for your business. Meanwhile read further to understand the difference.

How to Invest Safely in Crypto

If you are ever going to make the decision to invest in cryptos at the end of this article, please take note.

  • Investment in crypto requires strategy. You need to be strategic. New investors are always advised to monitor the market and acquire coins during ‘dip’. A dip period is that time when the price of most coins is low or experiencing deflation. When you buy at this time, your profit margin will be wider when the coins return to their normal price or even exceed their usual price. 
  • Avoid investing more than you can afford to lose in crypto. Don’t ever borrow money to invest. Why? Cryptos are very volatile.
  • Another thing is, when you invest, ensure you have enough to take care of yourself and yours for at least a year. There are chances that the prices of coins will go down, and when they do, it won’t make sense to sell them because you are stranded. So you will have to wait till they rise again.
  • Research and research. Find out what problem the coin wants to solve. How useful is it? Read their white paper. It will give you information about the coin concept, and a roadmap for growth and to achieve success. 
  • Stay knowledgeable about global politics as this will also help you know what direction the course is going. 

Which is a better investment between crypto and real estate – Choose for yourself

  • Real estate value fluctuation is less volatile


Crypto value can drop by 15% in an hour – a normal event for crypto investors/dealers

  • Real estate requires heavy capital to purchase ( you have to pay bigger upfront)

On the contrary

Crypto can be acquired with the exact amount of capital you have available (Cryptos are of different prices/values when you find one, you can invest any amount desired in it). You can invest as low as $5.

The final decision on which to invest is yours to take. But remember, if you are risk-averse, you may need to think well before investing in cryptos. Or consider less volatile investments such as starting a business. Check our How to Start a Fruit Juice Business in Nigeria | Pt. 1

Meanwhile, we have developed a unique app to bring together on one platform,  both international partners/investors and Nigerian entrepreneurs to share business data intelligence and connect both to the market. The App is going through the test stage and you can be a part of the testers by downloading right here. Want to stay connected to know when we have opportunities, kindly sign up to our newsletter. For more content, check our YouTube channel. If you need to book a FREE  Q&A with Joadre, then make reservations here

Thank you for reading to the end. 


Joadre Editorial

I am Joana, a Nigerian-born Austrian-based entrepreneur and activist. Founded Joadre in 2012 and continue to develop content to engage and empower African SMEs.

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