So much of today’s investment talk centers on emerging opportunities in digital finance. From crypto coins to NFTs, we’re seeing a revolution right before our eyes – one that’s creating millionaires (and billionaires) but also costing people their life’s savings.

The crypto market is unregulated, which can be a blessing or a curse, depending on how you look at it. New investors are tempted by the success stories they see online, but should you bother with the relatively unproven approach when stocks are tried and true?

We’ll compare and contrast investing in crypto vs stocks below, showing you where each has an edge. But maybe you just want the short answer: should I invest in crypto or stocks? We prefer sticking with what is tried and true, and that’s the stock market.

Our stock trading system has outperformed the S&P 500 index by 10x over the past 20 years and counting. Stock investing can be less volatile, easier to understand, and in turn, leads to higher returns in the big picture.

There’s a lot more that goes into choosing between stocks vs crypto, though. So let’s start with the basics – what is the difference between crypto and stocks?

What’s the Difference Between Crypto and Stocks?

You can’t possibly make a decision between investing in crypto vs stocks without understanding the core principles behind each investment vehicle. They’re very different, although the goals remain more or less the same – buy a stock or crypto coin you suspect will rise in value.

But because cryptocurrency relies on technology rather than a company, it’s a bit more complex and hard to grasp – especially if you’re a traditional investor used to trading stocks. So what is crypto, exactly?

What is Cryptocurrency?

This form of digital money is built on blockchain technology. What does that mean, though? Each coin/token lives on a decentralized ledger. In other words, no single entity controls it. Transactions are verified by a network of participants rather than a central authority like a bank.

The most well-known example is Bitcoin, which was created as a peer-to-peer alternative to traditional currency. Other popular crypto coins today are Ethereum and Solana, and there are countless others popping up on a regular basis.

Now, there are also “meme coins,” – we like to think of these as the penny stocks of the crypto world in the sense that you can buy them incredibly cheap. Dogecoin is the most popular, which earned people millions while costing others everything they invested.

It’s worth noting that not all forms of crypto are designed to be “money,” though. Some are used to power decentralized apps, reward users, or grant access to projects. The vast majority of users investing in crypto are doing so to earn a return on their money, though.

Whatever the case, you can buy crypto through some traditional exchanges like Robinhood, but more serious crypto investors will use something like Coinbase paired with a digital wallet.

The crypto market has exploded over the past decade or so. It sits at over $3 trillion and has become much more mainstream than traditional investors ever would have imagined.

Bitcoin once sat at just a few cents. Even just 5 years ago when the market was well-established, you could buy a single Bitcoin for roughly $6,500. Since then, Bitcoin has risen from just a few cents to tens of thousands of dollars, peaking above $100,000 at one point.

 

We believe this is a huge reason more and more people are considering investing in crypto vs stocks: remorse. You can’t go back in time and be one of the early investors in the crypto frontier – but maybe you can get in on the next big coin, or at least ride the Bitcoin wave today.

That’s the problem, though. Investing from an emotional place is one of the best ways to blow up your portfolio and lose it all. Crypto behaves erratically as it doesn’t follow the same patterns as stocks, which are influenced by earnings, company news, and other predictable factors.

Speaking of which, let’s quickly touch on the other half of the stocks vs crypto comparison.

What are Stocks?

A stock represents partial ownership in a company. You’re buying a small slice of a business when you buy a share, along with a claim on its future profits and assets.

Companies issue stock to raise capital, and investors trade those shares on public exchanges like the NYSE or Nasdaq. Your investment is backed by a real business, with revenue, expenses, and quarterly reports you can track. It’s tangible – which is why it’s so much easier to understand and, in our opinion, a far better investment vehicle.

Some companies also pay dividends, sharing a portion of their profits directly with shareholders. We believe dividend stocks for passive income is one of the best ways to get your money working for you. They’re also the best stocks for Roth IRA if you’re trying to invest for retirement.

Stocks are regulated financial instruments with strict disclosure requirements and oversight by agencies like the SEC. That doesn’t mean you can’t get burned on a bad investment with stocks, though. You still need to do your due diligence into any company you invest in.

Fortunately, it’s a lot easier to trade stocks at a high rate of success since people have been doing it for centuries in some way or another. There are predictable patterns you can look for to make a solid assumption of how a stock’s price is going to move.

Better yet, you can leverage technology to do the hard work for you. The stock analysis software we’ve developed here at VectorVest tells you what to buy, when to buy it, and when to sell it all at a glance – saving you time and stress while empowering you to earn higher returns.

Are There Any Similarities Between Stocks and Crypto?

Before we compare and contrast stocks vs crypto, let’s take a moment to appreciate how they’re similar. Despite the dramatic differences between crypto and stocks, there is some overlap.

For instance, they both rise and fall in value based on supply, demand, and investor sentiment. You can buy and sell either one through a brokerage or exchange, track prices on charts, and use fundamental vs technical analysis to guide your trades.

In this sense, both these investment vehicles can be a part of an investment strategy – but how you use them, what drives their value, and the risks involved are where the paths split. So, should I invest in crypto or stocks? Let’s take a look at which is better for you below.

Investing in Crypto vs Stocks: Which is Better?

Just as with trading options vs stocks or investing in bonds vs stocks, we can’t tell you with any level of certainty whether stocks vs crypto will deliver a better return for your money or which is inherently “right” for you. It all comes down to your goals, risk tolerance, and time availability.

That being said, we can show you where each investment vehicle has an edge over the other and ultimately share our opinion on which is the best way to invest in 2025 and beyond. Let’s start by unpacking volatility and price stability when investing in crypto vs stocks.

Volatility and Price Stability

Crypto moves fast – sometimes within minutes. While that might present opportunities for those who are ahead of the curve, it often translates into wild swings that are tough to manage. A single tweet or regulatory rumor can send prices flying or crashing.

Most investors find themselves late to the party. By the time they check their crypto forum or open up their crypto wallet, the opportunity has passed. Or worse, the early investors sold off their positions to capture profits, the price dipped, and now you’re left holding the bag.

That’s not to say stocks can’t be volatile. In fact, we recently wrote about some of the most volatile stocks. However, there are much clearer signs of volatility with stocks. The movement tends to be slower and more predictable.

It could be earnings calls or macro news triggering volatility. Or if you’re trading meme stocks like GameStop or AMC, it could be the latest update from r/wallstreetbets – but we consider those to be unique investments outside of traditional “stock trading.”

The key takeaway is that stocks provide a far more stable basis for those trying to build wealth with some degree of predictability. That’s because you’re dealing with assets tied to real companies, not investor sentiment alone.

Long-Term Performance

We’ve all seen stories of early Bitcoin investors turning pocket change into fortunes. Like we said earlier, these anecdotes are what has so many people flocking to cryptocurrency, hoping to achieve a similar outcome. It’s just not realistic.

The truth is, that kind of growth is the exception with crypto, not the rule. Stocks, especially the best blue chip dividend stocks and undervalued stocks, have a proven track record spanning decades.

You can see this long-term success by looking at major indices. For instance, the S&P 500 has averaged around 10% annually since the 1920s. There’s no comparable long-term data for crypto, and most coins don’t survive a full market cycle.

But that 10% return is just the tip of the iceberg. Remember, the VectorVest stock advisory has outperformed the S&P 500 index by 10x over the past few decades! You can achieve pretty impressive returns with the right stock picker app.

Risk Management and Transparency

We want to be clear that there is going to be some level of risk whether you choose to invest in stocks vs crypto. It’s just a matter of how you’re able to manage the risk.

You have much more control with stocks since you’re buying into regulated companies that file quarterly earnings, disclose financials, and face oversight from regulatory bodies. This gives you a wealth of tools to analyze risk and make informed decisions.

On the other hand, crypto investments tend to be linked to market noise or guesswork rather than any sort of technical or fundamental data. Worse, most projects lack transparency – so you’re susceptible to hacks, rug pulls, and vanished development teams taking their seed money and running.

For what it’s worth, plenty of low-quality stocks are linked to transparency concerns as well. For example, there are tons of stocks under 10 cents – known as penny stocks – that don’t have to report the same way more established companies do.

Income Potential

Let’s get into what you’re really curious about with investing in crypto vs stocks. How much money can you make? There’s two ways you can make money with stocks: through price appreciation and through dividends.

But even without those regular dividend payments, solid stock picks can compound over time through reinvestment of profits. In contrast, crypto relies entirely on price appreciation or staking, which often comes with lockups and added risk.

Think back to what your goal is with investing. If you’re looking to build cash flow alongside capital gains, stocks will likely be the better bet since you have more proven ways to do it, especially inside retirement or brokerage accounts.

Time Commitment and Learning Curve

Both markets require some upfront education, at least, if you want to prevent catastrophic losses early on. But whether you’re learning how to trade penny stocks or how to sell covered calls, information is far more accessible in the stock market.

Stocks allow you to apply consistent strategies with data you can trust, and with tools like VectorVest, you can do it without needing to be glued to the screen all day. This is what makes it the best investment app for beginners.

With crypto, you need to understand both the principles of investing and the technology at play. There are just more moving pieces, and the concept of investing in crypto is more difficult to grasp since it’s intangible. Wallets, gas fees, networks, staking, forks – expect a longer learning curve with crypto.

Utility in a Balanced Portfolio

Crypto might have a place in your portfolio – just not a large one. A small allocation (think 1-5%) might make sense if you want exposure to alternative assets or believe in blockchain long-term.

Most investors, though, will find that stocks form the core of a portfolio that grows over time, pays dividends, and adapts to different market conditions. Stocks offer diversification across sectors, geographies, and styles in a way crypto can’t.

So, Should I Invest in Crypto or Stocks?

You’re probably starting to resonate with one or the other between stocks vs crypto. But if not, should I invest in crypto or stocks? We think the best way to invest is also the simplest: stick with stocks.

This is the best way to grow your wealth with a mix of reliability, transparency, and long-term upside. Although crypto is tempting for its one-off flashes of sky-high returns, these occurrences are much rarer than online gurus would lead you to believe.

Stocks offer structure, data, and a track record you can actually build a future on. You don’t need to chase hype, you just need a smart system. That’s where VectorVest comes in.

Our stock analysis software is built for investors who want results without the guesswork. You’ll get a simple, color-coded buy/sell/hold rating on over 18,000 stocks, plus tools that identify undervalued opportunities, time your trades, and manage risk.

This means less time spent in front of a screen looking for and vetting opportunities, less stress and uncertainty in your decision making, and more consistent profits in the long run.

Whether you’re brand new and interested in learning how to invest in blue chip stocks, considering selling covered calls for income on the side, or looking for the best short-term stocks for swing trading vs day trading, VectorVest can help. Get a free stock analysis now!

Wrapping Up Our Comparison of Stocks vs Crypto

We hope this comparison of investing in crypto vs stocks has left you feeling clear and confident not just in which is right for you but your next steps as well.

While crypto grabs headlines with volatility, stocks continue to deliver reliable growth, income potential, and transparency backed by decades of performance. Most investors will find stocks to be the smarter long-term strategy – especially with the right tools and guidance.

You don’t need to gamble on crypto to grow your wealth. Invest smarter with VectorVest, the #1 tool for building conviction and consistency in your trades!