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Author: Admin | 2025-04-28
Don't put all your eggs into one basket. One of the first problems new investors run into is where they should invest. With thousands of publicly traded companies, there's no shortage of companies to choose from, and with the emergence of cryptocurrencies over the last decade, the options have expanded even more.Between the S&P 500 and Bitcoin (BTC 1.41%), here's what I think is the better first investment.Image source: Getty Images.How the S&P 500 worksThe S&P 500 is an index that consists of the 500 largest companies in the U.S. by market cap. S&P 500 index funds are funds put together to mirror the index, and different brokerages put together their own funds. If you want to invest in an S&P 500 fund, you have multiple options, such as the Vanguard S&P 500 ETF, SPDR S&P 500 ETF Trust, iShares Core S&P 500 ETF, and more.The companies in the S&P 500 cover almost every industry you can think of, making it ideal because it gives investors instant diversification. Instead of having to invest in individual companies in varying industries one by one -- and increasing your risk of making a bad investment -- you can just invest into an S&P 500 fund and be instantly invested in top players in respective industries.The emergence of BitcoinBitcoin is a cryptocurrency that was released in 2009 that has since gone on to be the world's most popular and biggest cryptocurrency by market cap. Bitcoin was revolutionary because it was the first decentralized currency, meaning no central power (like the Federal Reserve) controlled it. As of February 9, 2022, Bitcoin's price has increased by over 13,570% since its inception, making it one of the most lucrative investments of all time in any asset. Unfortunately, those historical gains don't automatically mean investors can expect similar
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