Investing in cryptocurrency continues to be extremely risky given that the market is extremely volatile. For small investors, it’s is better to put your money in a struggling company like Air Canada than in cryptocurrencies. You want to know why?
Bitcoin vs. Dogecoin
It seems extremely difficult for small investors to benefit from Bitcoin. Though Bitcoin staged a record rally in the last few months, the cryptocurrency has also tumbled by more than 25 percent in just seven days. Small investors may end up losing all their money. It may also be an incomprehensible loss for big investors to comprehend.
Dogecoin has also significantly rallied in 2021 though created as a joke. The cryptocurrency is consistently getting Musk’s attention on Twitter. It is a crazy idea for small investors to put their money into this meme-based cryptocurrency, given that it will only take one tweet to trigger a massive sell-off.
Why Air Canada Stock?
For years, Air Canada stoke used to be favorite, but the COVID-19 pandemic greatly affected travel globally. The company lost $4.2 billion in cash in 2020 alone. Investors were hoping for a better 2021, but the prolonged travel restrictions seem to hinder the operations of Air Canada.
In the first quarter of 2021, the company reported a loss of more than $1.2 billion. The company has inked a deal with the government to access $5.9 billion in cash to help in the financial recovery.
While the recovery of Air Canada stock might take a long time, it is still far better than any investment in cryptocurrency at the moment. Resumption of health travel could help the airline stock gain massively in the coming years. For small investors, it is better to avoid temptations of investing in crypto, instead, look for strong growth stocks for the long term.
