Should You Buy Bitcoin or Invest in the Stock Market? – Motley Fool

Should You Buy Bitcoin or Invest in the Stock Market? – Motley Fool

It can be tough trying to decide where to invest your money, especially when there are countless investment options out there.

Investing in the stock market is a tried-and-true way to build wealth over time, but cryptocurrency has been making waves for its explosive price increases. The S&P 500 has had a phenomenal year, surging by nearly 40% over the past 12 months. The price of Bitcoin (CRYPTO:BTC), however, has skyrocketed by nearly 300% in that timeframe.

Where you invest will make an enormous impact on your long-term earning potential, so it’s important to be sure you’re investing in the right places. If you want to earn as much money as possible by investing, should you buy Bitcoin or invest in the stock market? Here’s what you need to know.

Person putting Bitcoin token into a piggy bank.

Image source: Getty Images.

Weighing risk and reward

All investments carry some degree of risk, regardless of whether you buy stocks or cryptocurrency. However, cryptocurrency in general is far riskier than stocks.

Stocks have a long history of increasing in value over time. So if you buy a stock from a company with strong fundamentals, there’s a good chance that stock will experience long-term