Crypto is an exciting asset, since it is digital and has the tendency to quickly increase in value. However, some people are wary about investing in it due to its volatile nature and their lack of knowledge. While crypto trades similarly to stocks, they are significantly different assets.

Stocks are shares of a publicly traded company that are listed on exchanges for institutional and retail investors to buy and sell at will. On the other hand, cryptocurrency is a term that refers to digital currencies backed by blockchain technology.

Anyone with adequate crypto and blockchain knowledge can create a cryptocurrency and list it for sale on a decentralized exchange like Uniswap. For it to be listed on a centralized exchange like Binance, they have to apply and follow the process stipulated by the exchange. Once a cryptocurrency is listed, anyone can buy and hold it until it increases in value.

Unlike traditional stocks that are tied to a real company’s performance and future earning potential, cryptocurrencies do not have inherent value. Rather, their value depends on their popularity, volume of usage, and the news surrounding them. Hundreds of new cryptocurrencies spring up every year, but only a few like Bitcoin, Ethereum, and Solana have withstood the test of time.

Bitcoin is currently the most valuable cryptocurrency and is trading at $108,000 in May 2025, as it is in demand and being traded heavily around the world. Ethereum and Solana are also valuable, since they are decentralized blockchain networks on which other cryptocurrencies are built. Their continuous usage to create new cryptocurrencies ensures that they are here to stay and will only grow in value.

Ethereum and Solana are currently trading at $2,570 and $179 respectively in May 2025, and are expected to be worth more in the future. Since Solana is trading at a much lower price than Ethereum, it is perceived to be the better investment option since it has a higher chance of multiplying its value and giving holders a significant return on their investment. Potential investors looking for how to buy Solana should ensure they do so at a reputable exchange, only after sufficiently researching it and understanding the risks involved.

Cryptocurrency is generally more volatile than traditional stocks. This means they can generate significant returns quickly but they also tend to lose a good chunk of their value quickly as well. Investors should stick to well-known and heavily traded cryptocurrencies like Bitcoin, Ethereum, and Solana. 

It is also recommended that they thoroughly research any crypto asset before buying it and stay away from meme coins. Meme coins hardly retain their value for long. Most times, the creators rug pull investors, making them lose most of their initial investment.

Endnote

Crypto is a valid asset to invest in in 2025, however, investors should be aware of their volatility. They should carefully pick crypto assets that are heavily in use and have a chance to grow in value in the long term. Nevertheless, investors should not fully invest in crypto, they should diversify their portfolio with more tangible and traditional assets.