BitCoin is back! Or at least there’s a small rally that’s got people excited, especially the crypto zealots.

In the past few weeks numerous articles have declared “BitCoin to $20,000 by the year’s end” or “fiat currencies obsolete by 2030.” According to these same sources, now’s the time to buy or else you’re getting left behind.

In today’s article, I’ll explain why I’m personally not getting back into crypto currencies and why there are better opportunities available.

Most Crypto Coins Don’t Actually Do Anything

Before we get into this point, I want to mention that I do think BitCoin has practical value. It’s an easy way to transfer money, and it allows you to buy from (or get paid by) institutions many traditional banking services have embargoed.

That said, many alt coins and tokens do diddly squat.

You can still make money trading alt coins, but most of them have zero long-term value. Perfectly fine if you’re hopping in and out of different crypto currencies, but not good for long-term investors.

Here’s a personal example. I bought some OmiseGO for $8 a coin. It soared to $21. Using an investor’s mindset, I held on for the long-term.

Today those coins are worth $1.71 each.

In contrast, I bought four shares of VOO for $260 on October 10th, 2018. One day later the stock market crashed. Using that same investor’s mindset, I held on. Today those shares are worth $270 each, plus dividends.

If you think I’m cherry-picking or using an outlier, check out this “Prices Since All-Time High” chart. Many of the coins listed have lost 90% or more of their value.

Assets have long-term benefits, trade based profits are time-sensitive.

Boring, Traditional Assets Offer Better Returns Than You Think

(This Is A Very Well-Known REIT, It’s Gone Up Considerably Within The Past Year)

I’ve noticed a disturbing trend where people who don’t have a lot of money sink all their extra funds in BitCoin / alt coins hoping for a big payday.

In the meantime, these same folks are passing up some great investment opportunities.

If you have the money to buy 2 – 3 full BitCoins per year, you have the money to start a traditional investment portfolio. Owning dividend stocks or REITs is a great way to increase your monthly cash flow, and is significantly less risky than trading alt coins.

Creating a nest egg of blue chip stocks, index funds, bonds, or real estate is more stable than betting it all on one asset class in hopes that you’ll see explosive growth.

Create A Crypto Income Stream

If crypto does see a major resurgence, and BitCoin goes to $20,000 – $100,000 (like some advocates claim), you’d feel pretty dumb for missing out.

Because of this, I’d recommend a very low-risk method for building up your BitCoin holdings.

Join an affiliate program which pays out in BitCoin, and hold onto your earnings forever.

Getting a couple hundred bucks a month in crypto currency isn’t some life-changing amount of money, but it is a great hedge for BitCoin’s resurgence.

If crypto actually sees a 500% or 1000% gain you’re up tens of thousands of dollars. And if BitCoin stagnants or drops to nothing, you aren’t out anything. Just switch to getting paid in US dollars and count your losses as money you’d have spent anyway.

Closing Thoughts

I like BitCoin and hope it does well. However, I also think it’s weird when people fixate on one asset class.

You’re better off diversifying into multiple investments (like stocks, bonds, and real estate) while keeping some crypto as a hedge. This way you capitalize off any potential BitCoin boom, while minimizing your risk if things go sour.