of the S&P 500 and the Nasdaq Composite Two in bear markets, trading at levels more than 20% below their highs. However, the cryptocurrency market is more competitive. According to CoinMarketCap, the global market cap of 19,941 cryptos is currently only $ 900 billion, from a high of nearly $ 3 trillion.
Putting the value of the entire crypto market below that Amazon (AMZN -3.28%)While less than 40% from its peak, it is worth more than $ 1 trillion.
Given their similar rankings, it’s worth comparing the two and asking which is more profitable to invest in now: Amazon or a basket of 19,941 crypto tokens?
It is very difficult to buy every crypto
Even if the investor wants to, it is almost impossible to buy tokens from all existing cryptos. For starters, change the same Coinbase only provides a few hundred cryptos. There are some variables like Kraken, Celsius, and FTX, of course. And you can buy crypto through Robinhood. But each change has its own problems. For example, Celsius has suspended trades and departures due to crypto volatility.
Even if the investor can handle the logistics of buying all the stocks, it may not be a good idea. Most cryptos are speculative and related to projects in their early days. In addition, the cryptocurrency market is not the same as the stock market that has two signals with very large market caps – Bitcoin (BTC -3.27%) a Ethereum (ETH -6.89%) – more problematic than the two largest American businesses in the stock market, Apple (AAPL -1.48%) a Microsoft (MSFT -1.18%). Apple and Microsoft offer products and services, generate revenue, pay for shares, and resell one ton of their own shares. In addition, they have both knowledge and non -knowledge assets and they have management organizations that allow investors to take responsibility. In contrast, cryptos do not provide predictions because there is no downside activity. Their assets are more sophisticated and harder to compare until the business grows.
The crypto market continues to grow. While down more than 70% from their all -time highs, Bitcoin and Ethereum accounted for 55% of the crypto market share, while Apple and Microsoft accounted for the same. less than 10% of the US retail market.
The best way to approach crypto
Bitcoin and Ethereum are often treated as similar assets. But they also have different benefits.
Bitcoin derives its value from its stable supply of 21 million tokens, its decentralization, its security, and its use as an asset class. Ethereum and Layer 1 protocols as Solana (SOL -4.02%) a Cardano (ADA -4.02%) They are the building blocks on which decentralized funding applications are built.
Therefore, investors who believe that crypto can power potential applications for real -world use cases may consider a basket of Bitcoin, Ethereum, Solana, and Cardano. Even people who only want a small amount of crypto in their stores and don’t know the industry or development programs can be well served by simply buying Bitcoin.
Amazon might be a good buy
If I have to choose between having all the crypto programs or the Amazon archive, I suggest going with Amazon. Selling at a bargain price provides a better buying opportunity. The low-cost e-commerce industry is struggling amid supply chain bottlenecks, rising shipping costs, and increased competition. But Amazon Web Services (AWS) alone has seen more than $ 1 trillion. He is the leader in the online marketing world, has a high margin, high growth potential, and provides Amazon with a cash flow to reclaim its other segments. The growth of AWS is expected to be slowed by the weak economy. But in the long run, it’s hard to imagine that AWS won’t be much bigger in 10 years than it is today.
Crypto business problems
Investors interested in cryptocurrency face many challenges. As with the types of systems developed in the early days of the internet, many of the early crypto systems can prove ineffective over time. There is no guarantee that today’s leaders will remain in a state of turmoil for years to come. And it’s hard to predict the impact of the reform on the industry.
However, the cryptocurrency market has improved since its inception. The value of Bitcoin has decreased now Visa – which has a market capitalization of $ 415 billion- although Ethereum’s market cap is not as high as $ 133 billion. United States. This is a great time for investors who feel they are missing out on the rise of crypto to do some research and take a closer look at the industry. For those who think it’s too dubious, Amazon is the best seller.
John Mackey, CEO of Whole Foods Market, a member of Amazon, is a member of The Motley Fool’s board of directors. Daniel Foelber has positions in Bitcoin, Cardano, and Ethereum. Motley Fool has a position and promotes Amazon, Apple, Bitcoin, Coinbase Global, Inc., Ethereum, Microsoft, Solana, and Visa. The Motley Fool considers these options: long March 2023 $ 120 phone at Apple and short March 2023 $ 130 phone at Apple. Motley Fool has an advertising policy.