Anyone looking to get into investing is sure to stumble upon both crypto and real estate. Two very popular options for investments, but quite different from each other. To make it easier to learn the differences and similarities between the two, we have put them head to head in this post. 

Below, we will take a look at why real estate is better than crypto sometimes, but also why crypto is better than real estate every so often. Each has their own unique advantages and disadvantages that make them the better option for certain things.

Why Real Estate Is Better Than Cryptocurrencies

Long-term income

Real estate can be an excellent long-term investment as long as you have someone living in a property you own, or you are actively increasing its value with renovations or upgrades. While the housing market may go up or down, trends show an overall increase with time.

Especially if you decide to rent your property out, either to permanent tenants or as a vacation home for people to use. By doing this, you can make your initial investment back rapidly and then continue enjoying the benefits.

Hedge against inflation

Another reason why real estate is an exceptional investment is that it works as an inflation hedge. While currencies like the dollar or euro may rise or fall, the value of property moves independently of this. This makes it so that you are less susceptible to the shaky economy and inflation.


People who own real estate and property, either to live in or to rent out, often see plenty of tax benefits. This can come in the form of mortgage reductions, reduced local and state taxes, and even insurance premiums. Depending on your specific situation, owning real estate may give you great tax advantages and benefits that substantially assist you.

Multiple ways to invest

Real estate offers a multitude of ways to invest your money. While your mind may initially go to owning a home, this is not the only way that you can invest in real estate. For example, you could invest in a rental home that you rent out when you are not using it yourself. 

Or, for more large-scale investments, maybe invest in an apartment building and give up part of your profit to pay someone else to act as the landlord. You could also purchase larger properties and sell or rent them out to local businesses. The opportunities are numerous when it comes to how to invest in real estate.

Lesser volatility

The real estate market tends to fluctuate less than many other markets. While fiat currencies or even cryptocurrencies may move up and down in value quickly, the real estate market is far less volatile. This makes real estate an excellent choice to invest your money in, as the trends move quite slowly in one direction or the other.

Why Cryptocurrencies Is Better Than Real Estate

Both asset and currency

One of the key reasons why someone might choose to invest in cryptocurrencies rather than real estate is that crypto acts as both an asset and a currency. What this means is that crypto can be invested in simply to hold on to it and to resell it at a later date for a profit. However, you can also use your cryptocurrency as a currency, either through stores that offer crypto as an approved payment method, or with XEROF in all other shops.


Return on investment (ROI) is a formula that is used to assess how efficient an investment is. It’s used to measure how much your initial investment grows over a certain period. It’s something that is used both in traditional stock markets and when investing in cryptocurrencies. To calculate ROI, the profit from an investment is divided by the cost of the investment.

For example, if you invest $10.000 in BTC and later sell your BTC for $30.000, you have made a 3.0 or a 300% return on your investment. However, it is worth noting that ROI does not consider the fees involved in buying or selling crypto. It also does not consider investment risks or volatility.


When investing in cryptocurrencies, one of the key factors is that it is simple to exchange one currency for another. While you may initially invest in Bitcoin, you can easily swap it over for Ethereum or Terra for example. 

If compared to real estate, it is not feasible to swap one piece of real estate for another, for example. This is one of the key advantages that cryptocurrencies have over real estate as a mode of investment.

Future of money

While it’s something that you have surely heard before, it is important to remember that cryptocurrencies are the future of money. Decentralized currencies arguably make things easier in several ways, the biggest thing holding it back currently is that it is not a widely accepted payment method. However, with services such as XEROF, you can make investments and purchases with your cryptocurrencies. In the future, cryptocurrencies are expected to continue to grow and become the new standard for plenty of things. 


While there are plenty of pros and cons to investing in either, the best thing you can do is to diversify and own a bit of both. By investing in both cryptocurrencies and real estate, you remain safe even if one market were to see a negative dip for some time. Thus, the adage to not put all your eggs in one basket rings true even here.


XEROF is a Swiss-licensed FinTech specialising in cryptoassets. Our Tier 1 banking network allows clients to seamlessly navigate crypto and fiat transactions to manage investments, treasury, and settle third party expenses.

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