Meanwhile, cryptocurrency is a completely different investment than owning a stock. Rather than owning part of a specific business, you buy digital currency in the hope that its value will increase over time.
All of these investments make me nervous because in my mind they are all quite speculative.
The companies behind the penny stocks tend to be newer, less established companies with uncertain futures. And these companies are generally not subject to the same disclosure requirements as large companies. This means that penny stocks can be much more difficult to analyze.
Even stocks, on the other hand, are stocks whose value tends to fluctuate more based on publicity and social media interest than the movements of the companies behind them. Or, to put it another way, what you will pay for a stock even on any given day may not reflect the true value of that business. As such, the future value of stocks itself is quite uncertain.
Finally, the cryptocurrency is quite speculative as we don’t know whether or not it will continue to gain in value over the long term. Whether cryptocurrency remains a viable investment will largely depend on its ability to become a widely accepted form of payment, and at this point, it is too early to know.