Crypto vs. Real Estate: Which to invest in?
5 minute read
March 17, 2022


One of the most important pieces of advice for any investor is to diversify your portfolio. 

But what does this mean for a new investor who has dozens of options?

Whether you’re a new or experienced investor, you likely have heard about cryptocurrency. This type of investment has caused a lot of debate among experts regarding the risks involved.

On the other hand, real estate is a tried-and-true investment with numerous benefits.

In the crypto vs. real estate investment debate, there is much to take into consideration. 

Let’s dig into the benefits and risks of each, plus which type of investment ultimately provides the greatest chance of success.

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What is Cryptocurrency?

Cryptocurrency, or crypto, is a type of digital currency that dates back to the 1980s

This form of payment can circulate without involvement from the government or a bank, yet can be bought, sold, or traded securely using cryptography.

Cryptography makes it almost impossible to counterfeit or to double-spend this type of currency. And since there’s no central authority issuing it, it cannot be regulated or controlled.

The most popular cryptocurrency today is Bitcoin, which was created in 2008 by a person under the pseudonym Satoshi Nakamoto and became available to the public the following year.

Cryptocurrencies can be used to purchase goods or services, but some people choose to invest in them.

How Do You Invest in Crypto?

Bitcoin can be purchased using U.S. dollars, while other types of crypto require that you pay for them with bitcoins or other forms of crypto.

Some traditional online brokers offer cryptocurrency, but there are also crypto-only exchange platforms.

To invest in crypto, you’ll need an online wallet app to hold your currency. Once you decide where to purchase your crypto, where to store it, and how much to invest in, you’ll be on your way.

Is Crypto a Smart Investment?

New and experienced investors alike are wondering: Why is crypto so popular?

Some people see this type of currency as the “currency of the future,” and are in a rush to purchase it before it becomes more valuable. Others appreciate that it is decentralized.

But is it actually a good investment? Many experts don’t believe that it is. 

For starters, it is extremely volatile. The fluctuations have made investors hesitant to find the risk worth it, especially because crypto is also popular with criminals and hackers.

If the investment is already a significant risk and subject to intense fluctuations and criminal activity, it may be wiser to invest in a steady, tangible asset, such as real estate.

How Do You Invest in Real Estate?

Real estate is among the most popular types of investments, and especially is helpful in diversifying your portfolio and balancing risk.

There are several ways to invest in real estate, whether it be rental properties, house flipping, or real estate secured notes.

If you’ve never considered real estate because you don’t want to be a landlord, or put in the work to fix and flip, there fortunately is a passive, high-yielding real estate investment in the form of secured loans.

Secured loans are a lucrative alternative to traditional fixed-income investments because they result in a higher yield with more protection for investors than other types of high-yield investments.

Where to Invest in Real Estate Secured Notes

To invest in secured notes, you need to find a mortgage lender that offers this type of product.

Private money lenders, such as Marquee Funding Group, often are able to offer a wider range of mortgage products, because they fulfill a need left over by banks and credit unions following strict mortgage requirements.

The best private lender provides loans in both the consumer and commercial marketplace, so in turn they can offer investors a more diverse portfolio of secured notes.

These professionals scrutinize loan requests for quality, which provides investors with more security than other types of investments.

Crypto vs. Real Estate: Why Real Estate Stands the Test of Time

In the crypto vs. real estate debate, most investment experts believe there’s no contest. 

While investing in crypto can be one piece of a diverse portfolio, it hasn’t proven to be stable enough for even the most risk-tolerant investors to allow for much more than that.

Those interested in investing in crypto are encouraged to do so carefully and to understand the risks involved.

Meanwhile, mindfully investing in real estate can provide steady income and tax benefits. If you put enough time into it, or hire an asset manager, you have the opportunity to skillfully increase returns.

Plus, since it’s separate from the stock market, it allows the perfect balance to your portfolio.

How to Invest with Marquee Capital Fund 1

Marquee Funding Group offers accredited investors quality real estate secured loans through its mortgage fund, Marquee Capital Fund 1.

By offering a wide range of well-underwritten mortgage products, with an 8% preferred return, investors can passively invest while gaining high yields.

Marquee’s team scrutinizes each loan request for the quality of the collateral, the borrower’s financials and ability to repay, and the title verification.

These steps help ensure investors have additional protection.

To invest with Marquee Capital Fund 1, you must be an accredited investor. This means any of the following statements are true:

  • Your annual income is greater than $200,000 (for the past two years)
  • Your joint household income is greater than $300,000 (for the past two years)
  • Your net worth is greater than $1 million (excluding your primary residence)

Start investing with Marquee today, or contact us to get to know our team and ask any questions. We look forward to hearing from you.

Photo by LinkedIn Sales Solutions on Unsplash

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