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Crypto-currency Bitcoin may be on the rise again, but I prefer to build my wealth by investing in affordable UK shares.
Although I would say the fastest money I’ve ever made has come from Bitcoin. I bought two virtual coins in 2016 for around $600 and then watched them rocket to $20,000 in December 2017. After the subsequent crash, I sold one for $7,000.
If crypto flies to the moon once, I’ll still hold one remaining bitcoin, but I don’t think much of it. The price rose 15 percent to US$22,381 in one week, but I’m not working on that. I find it more rewarding to build a balanced UK stock.
I used to buy UK stocks before crypto.
When I buy shares or funds, I am investing in real companies that provide real goods and services in the real world. Last time I got into crypto, I felt like I was mentally dishonest, because I didn’t trust it.
I still don’t get the end user case or how to justify all the hype and excitement. If someone tells me that crypto has made anyone’s life easier or more useful, I’d be interested to hear it. Most of the investors I’ve seen buy Bitcoin and Ethereum buy them primarily, out of speculation.
It’s easy to see the point with UK shares. Glaxo He produces medicine for weak people. Aviva Sells pension and protection. National grid It helps keep the lights on. Persimmon He builds houses for people to live in. That real houses are made of bricks and mortar, not imaginary.
Bp fuel cars, SSE creates power, Rio Tinto It digs metals that have a thousand applications. What exactly does Dogecoin do?
Another good thing about buying UK shares is that once I buy them I can largely forget about them. Nowadays I check my portfolio even when the markets are crashing or booming. I left it to get on with the job.
I will never buy Bitcoin again.
All my dividends are reinvested for growth. This means I’m regularly buying more stock by doing nothing…nothing. That’s how I like it. What I don’t like to do is spend half my life staring at some online trading forum fuming about where Bitcoin is going next (usually in the wrong direction).
I accept that some UK stocks can lose me money. One or two companies may go out of business. Even the ones that do well don’t have the chance to rocket to the stars the way crypto can. But I believe they will build my wealth over time. Softly, gently, and with little noise. It is the exact opposite of Bitcoin.