Other people prefer cryptocurrencies because of their decentralized nature, enhanced privacy features, high-powered automation options when the currency offers smart contracts, and other advanced options that no ordinary stock or currency can offer.
Crypto disadvantages vs. stocks
Lack of proper regulation has been one of the biggest issues with cryptocurrency, especially for institutional investors. Fortunately, this is gradually starting to turn around. In 2024, the U.S. Securities and Exchange Commission (SEC) approved the first Bitcoin ETFs and Ethereum ETFs, giving investors a new way to buy these cryptocurrencies.
The slow transactions can also be an issue for some traders. Soaring crypto prices can come crashing down just as quickly.
Finally, there's the question of security. What if your crypto brokerage is hacked or goes under? What if you download your crypto holdings to a safe local wallet -- and then forget the password? These are common dangers that have caused many crypto investors to lose money.