Is crypto currency a good alternative to property investment? 06/05/22

To some, cryptocurrency represents the future of currency and an end to any form of physical transition between two parties. Others see it as a volatile market, with too little security and transparency.

In recent times, crypto has attracted as much global investment as property, with lower entry levels and overnight returns. This has continued to draw comparisons to each, creating an almost tribal belief that one may be better than the other.

So with this in mind, let’s take a look at both sides of the coin.


When it comes to potential returns on your investment, both property and crypto currency have the potential to grow your wealth exponentially. However, getting in at the right time is very important.

If you bought Bitcoin back in December 2017 for £14,748, and held it until today, you'd have made 100% profit on your investment capital. Similarly, if you bought Liverpool property at the same time, and rented it out at 7% per annum, you'd have made 69% on the value of your property along with around 40% in rental income.

So, although both have gained healthy returns over time, property has just edged crypto over the last 4-years.


This is where property really starts to show it's worth. While property has gained value steadily over the last 4-5 years, crypto has seen a level of volatility that can only be compared to weak penny-stocks.

As previously mentioned, when Bitcoin took off in December 2017, it reached over £14,000 in value. However, within 12-months it had lost 82% of it's value.

Similarly, in April 2021 it peaked at £43,474 before dropping almost 50% to £22,923 in a matter of just 3-months.

While this may not be a big issue for speculative investors, if you're looking for steady growth over time with peace of mind, property is a much healthier option.


If we consider the volatility of Cryptocurrency, it doesn't take a rocket scientist to figure out that you have to be very active in the market and very lucky to make a good profit. If you buy Crypto, you need to watch your investment very closely as the price can drop by double figure percentage points in a matter of hours.

Since cryptocurrency is unregulated, there are only a hand-full of institutions that will exchange cryptocurrency for cash, all of whom could change their mind at any moment.

Property, while it may take a small dip in value every couple of years or so, is a more stable investment — particularly if you're earning regular rental income from tenants.


While closing your crypto position isn't particularly difficult to do, the process of exchanging crypto for cash takes weeks, sometimes even months, to fulfil.

On the other hand, it could also take weeks or months to sell a property. However, earning a regular passive income in the form of rental returns means property is generally more liquid than crypto.

It’s clear that if you’re looking for the fastest return, crypto real can deliver on the right day. That said, with so many new and untested currency’s appearing, it’s becoming a confused space with the scope to deliver heavy loses to the uneducated. With both the tangible and stable returns of property investment still a popular option, for now at least it remains a more viable option.

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