Should You Buy Cryptocurrency or Stocks During the US Recession?
The question of “should you buy crypto or stocks during a US recession?” is a big one and there is no simple answer, as it depends on many factors such as your personal financial goals, risk appetite, and long-term investment horizon. However, here are some perspectives for you to consider:
1. Recessions are a time of opportunity – if you are patient
In a recession, asset prices often fall sharply due to fear. This creates buying opportunities at low prices. Both stocks and cryptocurrencies can become “discounts” if you choose the right assets with the potential to recover.
- Stocks of companies with solid fundamentals often recover strongly after a recession. Examples include Apple, Microsoft, or index ETFs (like the S&P 500).
- Crypto can fall deeper than stocks due to high volatility, but if you believe in blockchain technology and global adoption, accumulating well-founded coins like BTC, ETH when prices fall can be a long-term strategy.
2. Crypto or stocks - which should be prioritized?
- Stocks:
- Relatively safer, especially blue-chip stocks or ETFs.
- Usually recovers according to economic cycles.
- Has stable cash flow (dividends).
- Cryptocurrencies:
- Higher volatility, but also greater potential returns.
- More speculative, depends on confidence and capital flow.
- Can increase sharply even when the traditional market is gloomy, if there is a new wave (eg: BTC halving, ETF cash flow, DeFi trend, AI crypto...).
➡️ If you like stability and have a long-term strategy, stocks may be more suitable.
➡️ If you are risk-tolerant and believe in Web3, crypto is an attractive playground – but allocate wisely, do not “all-in”.
3. Important notes during a recession
- Reserve cash: Don’t invest all your capital – always keep some liquidity for emergencies.
- Diversify: Avoid putting all your money in one channel – allocate between stocks, crypto, gold, or bonds.
- Long-term vision: Don’t get caught up in short-term fluctuations. Successful investors often profit when others are panicking – “Be greedy when others are miserable.” (Warren Buffett).
👉 Conclusion: It is possible to buy both stocks and crypto during a recession, but you need to clearly identify the risks, choose quality assets and keep a stable mentality. Turbulent times always contain great opportunities – for those who are well prepared.