Is cryptocurrency an investment or asset?

The digital currency revolution started back in 2009 when Bitcoin was first introduced to the world. At that time, people were skeptical about this new digital currency that did not have a regulatory body. 

Well, in 2022, you will be surprised to know that we have over 115 million Crypto investors, and 15% of these investors are from India. Undoubtedly, Bitcoin was the torch bearer who made us believe that a decentralized currency system is possible and has laid down a path for more cryptocurrencies. 

Currently, we have approximately 6000 unique cryptocurrencies. Some of the popular ones are Bitcoin, Ethereum, Dogecoin, etc.

Now let us answer the main question, is cryptocurrency an asset or an investment?


Does Crypto count as an investment or an asset?

First, let us briefly understand the terms “asset” and “investment.” 

An asset is a resource with an economic value that an individual, country, or corporation owns or controls with an expectation that it will be profitable in the future. Common examples of assets may include machinery, patents, etc.

On the other hand, an investment is an act of buying an asset or an item, not for immediate use, but with the expectation of earning additional profit in the future. Common examples may include precious metals, stocks, etc.

Now coming back to answering the question, cryptocurrency is a top-notch investment option and an excellent asset. 

Crypto as an asset

We know that an asset is a valuable item sold by an individual or a company. Even though cryptocurrencies are digital items, you can easily exchange them between two parties as they are tradable.

An interesting fact is that Bitcoin, the first-ever cryptocurrency, was originally developed to replace the use of Fiat currencies owned by different countries. In addition, cryptocurrencies have a value just like Fiat currencies.

This simply means that in the crypto market you can use Crypto to buy and sell products just like you use your country’s currency. So you can easily buy Crypto as an asset.

Now let’s see how crypto is an excellent investment option.

Cryptocurrency as investment

As we discussed earlier, investment is buying an item not for immediate selling but for holding it back until you can get a better price.

Now talking about Crypto, it is a highly volatile item. You can buy it from the market and then hold it back for some time until the price increases, and then you can sell it later in the future to gain profit. 

This makes crypto an investment option as well.

You might wonder that as Crypto is a digital asset, so is it safe to invest in it?

Let us answer this question with an example. 

Do you remember that most of the markets faced huge losses during the pandemic? However, crypto assets were the only ones that could recover quickly. While the share market and commodities, like gold, had taken a major fall and were slowly recovering, Bitcoin made the quickest recovery within a few months. 

How to Buy Cryptocurrency?

So now you have understood that cryptocurrency can act as an asset and an investment. Let us discuss the methods through which you can buy them.

1. Traditional broker

You can find thousands of online brokers who buy and sell cryptocurrency along with other assets like PFs, bonds, etc. Usually, the trading fee through this method is quite low.

2. Cryptocurrency exchanges

These platforms have been exclusively developed to buy and sell cryptocurrency. They often have many features like wallet storage, interest-bearing account options, etc.


Cryptocurrency can act both as a real asset and an investment. It depends on how you choose to approach it. Wait, stop, don’t just dive into anything. Before buying a cryptocurrency, learn about the market condition of the token. You also need to be aware of the platform you buy from.

To learn more about the world of crypto assets and investments read our complete list of helpful guides and blogs on everything crypto.


1. Is it possible to lose more than you invested in Crypto?

According to our research, the value of a Crypto can never be negative. However, you may lose money depending on the type of investment and your strategy.

2. Should I invest in Crypto?

Anyone can invest in crypto as long as they have a Crypto wallet. However, if you cannot accept the sharp market swings, you must stay away from Crypto. We recommend investing less than 5% of your portfolio in cryptocurrency.

3. Is the value of crypto different at day?

Trading in the Crypto market continues non-stop throughout the day on a 24/7 basis across the planet. Even though the market is volatile, there is no specific time when the value can increase or decrease.

4. Which is the safest place to hold on to Crypto?

The safest option to store Crypto is a Hardware Wallet which acts as a cold wallet where you can store all your Cryptocurrencies offline.


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